///// Issue 26 - January 2015
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STAY CALM...
AND BE POSITIVE
MOHANAD ALWADIYA, MD, HARBOR REAL ESTATE, ABOUT OIL PRICE DIP.
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2015 ? EXPERTS ANALYZE THE DEMAND-SUPPLY EQUATION THIS YEAR
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''
Timely delivery is our priority '' Zafer Taher, CEO, G&Co
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HAPPY NEW YEAR!
KIRAN Reddy
New year brings new hopes and a lot of positivity. After the long holidays, Dubai’s real estate market is slowly getting into busier times. Yes it is a bit slow but it is stable, which is what the market needs right now. Stability is what everyone is looking for while making an investment. While the secondary market is gradually picking up, the off-plan market witnessed the first launch of the year and needless to say, the entire development was sold out in two hours. Dubai’s latest entrant in the property development sector, Danube Properties has launched its second project Glitz in Dubai Studio City, after the successful launch of Dreamz a few months back. Buyers comprising mostly end users lined up at the sales launch to buy their dream homes available at extremely affordable rates with attractive payment plans. I am sure we will witness more launches in the first quarter of this year.
E-magazine support srikanth@propertyonline.ae
In the first issue of 2015, Property Times features a new look and feel and better and richer content. In this issue, we have one of Dubai’s recent yet impactful developers on the cover; Zafer Taher , CEO of G&Co, which launched in less than two years; Millennium Estates, Grand Views and now Millennium Square, in Meydan. A ‘Sold Out’ sign board is what every developer dreams of when they launch a new project. G&Co sold out the first two projects in record time and is expected to sell out the remaining units in their latestproject Millennium Square soon. What sets Zafer apart is, which is also the main reason why he made it to the cover of Property Times this
E-magazine support kiran@propertyonline.ae
month, is his commitment to deliver what he promised his investors at the time of the launch. His first project Millennium Estates is expected to be ready six months before the due date, while the construction of Grand Views is also moving ahead at a rapid pace. Dubai needs more developers like this who not only launch high quality developments at extremely good rates with good payment plans but also strive to deliver the project on or before time. We also have, in this issue, a wide gamut of articles such as a study on the demand and supply equation in the market this year, a look residents and commercial property owners’ views at Discovery Gardens, Ajman’s latest development Al Zora etc apart from, of course, our regular Q & A’s and other useful columns. In the meanwhile, the nominations for Dubai’s first ever People’s Choice Real Estate Awards are picking up momentum with many leading real estate agencies expressing their confidence to win maximum votes from the people of Dubai. I would like to wish the nominees all the very best and I appreciate their willingness and excitement to be a part of something, which will make a huge impact in the market in the years to come.
SRIKANTH Reddy MANAF CK
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FROM THE EDITOR
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08
NEWS AND ANALYSIS: Glitz by Danube sold out
10
NEWS AND ANALYSIS: Update on Remraam by REIDIN.com
12
Column by Nita Maru, TWS Legal Consultants
14
PROPERTY EXPERT: Dounia Fadi, elysian
16
MORTGAGE EXPERT: Feyisesan Ekundare, MortgageMe
18
Column by the Wolf of Real Estate
32
Meet the agents
46
Manchise: Column on by Jitheesh Thilak
52
Exclusive property listings
G&Co surges ahead
20
2015: Dubai market
26
Al Zora comes alive
34
More hotels coming up in Dubai
January 2015 Issue -26 /// 7
41
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NEWS & ANALYSIS
GLITZ BY DANUBE
OUT IN January 2015 Issue -26 /// 8
2
HOURS
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he very first day of the Danube Properties sales launch for their second realty venture Glitz by Danube, saw all their apartments sold out within the first two hours of sale with constant requests coming in. A sales meet organised for investors at the Grand Hyatt Dubai, saw an overwhelming number of registered prospective buyers. Danube Properties, the property development arm of Danube Group established in 2014, was started with the aim to build Luxury residential property for the middle-income group. The division’s first project Dreamz, with 171 luxury townhouses, were sold out within the first day of the sales launch and received more than 2,000 enquiries prior to the launch. Glitz by Danube, a project worth AED300 million, saw that number increase fourfold. Rizwan Sajan, Founder and Chairman of Danube Group, commented, “We are very pleased with the response to our second project and it has further cemented our reputation as a developer of people’s choice. Danube Properties was launched to develop luxury homes at affordable prices in the market and we have successfully managed to do so with both our projects. The construction business has always been the key for driving growth in the country’s economy. According to the Q2, 2014 report by Business Monitor International, construction projects worth AED778 billion are under construction in the UAE. The recent announcement of the Expo 2020 reflects the growing strength of the Emirates and expected boost in the economy. “Being a leader in the building material industry, we have been associated with a diversified portfolio of properties in the UAE. It is because of our years of experience that we have an unwavering faith in Dubai’s real estate market and chose to step into a different realm of the property market. As an organization, we are excited and ready to extend our committed support to the nation, to position UAE’s pioneering role as a solid repository which will bring business and promote growth in the economy,” Rizwan added. The spacious homes range in housing area from 470 to 1,645 square feet in each apartment block of eight levels. The apartments feature contemporary design, luxury and comfort within a setting of lush landscape. Each flat will come with a fully fitted and equipped kitchen and high standard finish from the country’s largest building materials and interiors supplier, Danube. The apartment block will include some amenities like roof top golf course, leisure deck with a barbeque station, kids play area cum party hall, state-of-the-art health club and much more. Making this sale more attractive is the payment plan being offered by Danube to long-term investors and end-users, which requires the buyer to pay 10% down payment followed by 15% in 60 days. The balance amount is paid in 75 equal monthly installments of only 1% each. January 2015 Issue -26 /// 9
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NEWS & ANALYSIS
REMRAAM CONTINUES TO AMUSE AND RISE Remraam’s growth as a family-oriented community over the past six months has been primarily due to the facilities and amenities on offer for residents. By Binesh Panicker
L
ocated on the new Emirates Road (erstwhile Dubai Bypass Road), Remraam, developed by Dubai Properties Group, registered the maximum growth in terms of rentals at 25% in RERA’s latest Rental Index; a testimony to the growing popularity of the community. Well maintained lawns, pools, tennis courts etc are some of the highlights of this community, which is now easily accessible from differentparts of Dubai. Property Times, is association with REIDIN, brings you the latest update in terms of rentals and prices in this community as well as how it has fared over the past few months.
January 2015 Issue -26 /// 10
AHMET KAYHAN CEO, REIDIN.com
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STUDIO
2 BEDROOM
1 BEDROOM
3 BEDROOM
NEWS & ANALYSIS
RENTAL RATES OF REMRAAM
24/7 SECURITY LUSH GREEN SURROUNDINGS SPACIOUS CHILDREN'S PARK THREE SWIMMING POOLS BASKET BALL AND TENNIS COURTS BBQ AREA IN EACH CLUSTER
SPACIOUS TERRACE IN SOME APARTMENTS
UPCOMING GEANT SUPERMARKET AND OTHER OUTLETS
15 MINUTES FROM AL MAKTOUM INTERNATIONAL AIRPORT
25 KMS FROM EXPO 2020 VENUE
REIDIN.com is widely used by real estate agents and investors for reliable, well-researched information on the country’s real estate sector. REIDIN.com, founded in 2007, is a leading real estate information company focusing on UAE, Turkey and other emerging countries. REIDIN.com helps professionals and individuals easily access the real estate information they need to make more informed investment, purchase, sales, rent, mortgage, finance, development and management decisions. REIDIN.com ‘Data & Research Team’ together with a global network of information partners endeavours to provide high-end analysis and research support to its clients.
Source : REIDIN.com
January 2015 Issue -26 /// 11
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EXPERT ADVICE
THE UAE INHERITANCE SYSTEM Nita Maru, a Solicitor and Managing Partner of TWS Legal Consultants shares some legal advice regarding the above.
A
s if expat life were not fraught enough with challenges and complications, families of those who invest in properties here face further complications in the said event that the property owner passes away intestate.
How different is the UAE inheritance system with that of other countries? In the UAE, inheritance for Muslim nationals is guided by Sharia laws, while the law of the deceased’s home country can be applied for non-Muslim expatriates. Sharia is not a codified law and is capable of adaption, development and further interpretation. Matters of inheritance coming before the Dubai courts are heard by one or more judges. Juries are not used. Furthermore, unlike in some Western jurisdictions, there is no system of precedent in Dubai or the UAE. However, there are many uncertainties regarding real estate inheritance issues. Unlike other jurisdictions, the UAE does not practice ‘right of survivorship’ (property passing on to surviving joint owner upon death of the other, as would be the case in Commonwealth jurisdictions), and the local courts will need to make the final decisions.
What are the most common inheritance concerns of clients who own property here and what are the solutions? The most common concerns are from expatriates that have bought property here either in their sole name or jointly with their spouse. They are confused as to which inheritance
ria law principally operates by a system of forced heirship or reserved shares.
Nita Maru LLB (Hons) UK | Solicitor and Managing Partner TWS Legal Consultants
laws apply to their assets upon their demise, and usually assume that the laws of their native country automatically prevail over local Sharia laws. Inheritance laws in Dubai are not as straightforward nor the same as those back in the/ in some Western countries. If an expatriate owns property in Dubai and passes away, the laws of their home country may not apply to their assets held within the UAE, especially those that are fixed and immovable. Matters of inheritance in the UAE are governed by Federal Law No. 5 of 1985 regarding the law of Civil Transactions in the UAE (the “Civil Code”), and by Federal Law No. 28 of 2005 regarding the UAE Personal Affairs Law (the “Personal Affairs Law”). As a general rule, inheritance issues for Muslims are dealt with in accordance with Sharia, whereas for non-Muslims, the law of the deceased’s home country can apply. Succession under Sha-
Whereas the Civil Code states, in one part, that the law of the home country applies to matters of inheritance, in another part it states, that where a will made by a non-Muslim involves the disposal of real estate in the UAE, then UAE law applies. This is consistent with the fact that in general, in the UAE, the law of the state where property is located applies to real property rights. This conflict has caused confusion amongst non-Muslims as to the inheritance of their property upon their demise. To clarify the position The Personal Status Law 2005, was passed to add clarity to the terms of the Civil Code. Legal opinion in the UAE remains divided on whether this conflict is real or not. Consequently, expats are becoming more receptive to the idea of owning property in an offshore company which is not subject to Sharia law for the distribution of assets after death, because technically, a company cannot die, even when an individual does. Property owned by expatriates is often contended in the courts after death, whereas those which are legally owned by a company will never be. In real terms, the death of a homeowner can often cause a family grief and trauma due to lengthy inheritance processes, but these can be avoided, if the unencumbered freehold property is legally owned by a company instead.
Why is it important for expats living in the UAE to have a will, and what are the consequences of not having a will in place? For expats living in the UAE, there is a very simple reason to make a will. The Government of Dubai’s official website states that
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in place, this distribution will be applied automatically. Even shared assets will be frozen until the issue of inheritance is determined by the local courts. There is also no automatic transfer of shares where businesses are concerned.
Recently I have heard about the upcoming DIFC Wills and Probate Registry . How does the impending Registry help expatriates with assets in Dubai? The upcoming DIFC Wills and Probate Registry will provide a mechanism for non-Muslims with assets in Dubai only to pass on their estates according to their wishes. The rules governing the Wills and Probate Registry will complement existing UAE laws on inheritance for non-Muslims, and provide non-Muslims with the option and right to choose the way in which their estates are distributed; they will have the freedom to distribute their assets as they wish. The DIFC Wills and Probate Registry will be within the DIFC jurisdiction and
Mr Jones and Mr Davies are business partners and equal shareholders in a LLC company in Dubai, in the fashion / clothing trade. Their business is growing rapidly and they are extremely successful. Mr Jones is concerned that in the event of death of either one of them what the implications are.
will work with the DIFC Courts for the production of grants and court orders for the distribution of assets. As the grant is issued by the DIFC Court, it will be directly enforceable in Dubai without the need to go through the Dubai Courts. Also, as a “common law” jurisdiction, the use of the DIFC procedure would allow for testamentary freedom for dispositions for non-Muslim expatriates and a speedy and orderly administrative process of a deceased non-Muslim’s estate in Dubai.The DIFC will be the first jurisdiction in the MENA region, where non-Muslims will be able to register a will under internationally-recognized common law principles.
If my husband dies, will our joint bank accounts get frozen? In principle, the government will freeze accounts until all liabilities of your husband are cleared such
Call: +9714-4484284 Email: info@willsuae.com Website: www.willsuae.com www.twslegal.ae
In the event of a shareholder’s death, local probate laws are applied to a business, but the results may be unpredictable as shares do not pass automatically by survivorship, nor can another family member take over in lieu. However, we can secure arrangements to avoid lengthy local probate and guarantee business continuity. At TWS, we understand the implications and importance of planning for the future as an expat in the UAE. Can you afford not to talk to them ?
FOR FURTHER INFORMATION PLEASE CONTACT: TWS Legal Consultants Office Suite 3001, HDS Tower, J L T , Dubai. Tel: +971 4 448 4284 Email: info@willsuae.com Website: www.twslegal.ae and www.willsuae.com
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as loans, credit cards and business debts; this can happen within 1 hour of a fatality! The procedure for reactivating the accounts is complex.
EXPERT ADVICE
‘the UAE Courts will adhere to Sharia law in any situation where there is no will in place’. This means that if you die without a will or a succession plan, the local courts will examine your estate and distribute it according to Sharia law. All personal assets of the deceased, including bank accounts, will be frozen until liabilities have been discharged. A wife who has children will qualify for only one-eighth of her deceased husband’s estate, and without a will or estate planning
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EXPERT ADVICE
with property expert Our expert answers the queries about your real estate investments.
Maral Khalil elysian
Dounia Fadi Managing Director elysian 04 323 4545
I am a mortgage buyer with a budget of AED1.5 million. Which areas and what type of properties would you recommend?
I have a couple of properties in Downtown. Is it a good idea to sell them and buy a villa in an established community?
Depending on the number of bedrooms you require the area would differ. I always advise clients to purchase from a good developer, as later when you plan to resell it will be so much easier to do so. With AED1.5 million you can purchase a one bedroom or studio in the Marina or Downtown area. However, the one bedrooms with the best developers still exceed the AED1.5 million mark and a studio would be more realistic. The good developers include Emaar, Trident, Damac and Select Group. The prices for their one bedrooms with a good view usually start at AED1.6 million up to as high as AED2.3 million. To conclude, I would advise purchasing a unit in the most popular areas, so that whether the market is up or down will still be sought after. These area include Marina, JBR, Downtown and Palm Jumeirah.
This will depend on whether you are an investor or an end user. As an investor keeping the Downtown units will be a better choice especially if you are the first owner who have bought directly from the developer or at very reasonable premium from the secondary market as renting and receiving the rent will allow you to achieve a high ROI, also at the time of selling; your money will not be stuck in one place and you may sell one and keep one. If, however, you are an end user acquiring a villa will be a better choice, as you will have bigger space with less annual service charges to pay. Captain gain can also be achieved if the location of the villa is very strategic.
Mira Martinova elysian
My friends are advising me to invest in off plan properties rather than ready properties. What is the right thing to do if I am looking at it as pure investment? I would personally recommend going for off plan as most of the off plan properties from Emaar are branded as either The Address or Vida, The prices are still lower then ready assets in the same area. You also do not expose your capital up front as you follow payment plan and If you invest in the right off plan project your capital gain is higher annually compared to the ready properties appreciation, most importantly your future ROI is higher than the one you receive from ready assets. You can off load and resell off plan assets quicker and easier then the ready one. When buying off plan you have better choice on the unit size, location and view.
Sheikh Zayed road, Dubai
If you have any queries about buying or renting, please email at editor@propertyonline.ae January 2015 Issue -26 /// 14
Whatever your property needs are... ...all the signs point to, BUYING SELLING RENTING PROPERTY MANAGEMENT
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EXPERT ADVICE
with mortgage expert Looking for a mortgage? Our expert answers your queries about securing a mortgage in Dubai.
What exactly is the role of a mortgage broker/consultant? Do you charge a percentage of the mortgage value or a fixed price? Mortgage brokers and consultants perform similar roles but the nature and scope of both activities vary. For example, mortgage brokers in the UAEoffer a regulated financial activity – Both are responsible for ensuring the advice that is appropriate for the borrowers' circumstances, but only the broker is held liable by the regulating body if the advice is later shown to be defective. The consultant, on the other hand is not. Thus, the work undertaken by both the broker and the consultants depend on the depth of their service and liabilities. That being said, the goal of both is to save their clients as much money as possible by offering the best advice for the clients circumstances. Brokers and consultants achieve this by assessing the client's circumstances via interviews and mortgage fact find forms and face to face interviews - this may include assessment of credit history, which is normally obtained via credit reports of affordability, which is verified by income documentation, and of future plans to determine the optimal duration of the proposed mortgage loan; scanning the entire market to find mortgage products that fits the client's specific needs - This is usually carried out in conjunction with the client wherein a detailed comparative analysis report is compiled on multiple products (four of the best in the market vis-à-vis the client’s financial position and profile). This report highlights the pros/cons as it relates to the client’s needs and the best
Feyisesan Ekundare MortgageMe.ae Business Development Middle East/Africa M: +971 050 4168 5
suited product is then selected; assisting the client in gathering all the relevant documents required for a mortgage application and securing a pre-approval from the chosen lender; assisting in completing a lender application form, clarifying legal disclosures and submitting the required application documents to the lender; and following up on the transaction until disbursement while keeping the client updated at all times and being on ground to ensure that the land transfer process at the Land Department is executed seamlessly. The service charge can be anywhere from 0% to 1.5% of the mortgage loan amount. Some firms charge a fixed price but ideally charges are based on the level of difficulty in executing the mortgage transaction; the nature of the mortgage transaction; the level of the standard of service provided; and the client’s profile.
My wife and I have a combined salary of AED40,000 per month. What is the maximum mortgage amount we can avail of? How do we apply together for the mortgage and who will be liable for repayment? In the UAE, on a combined monthly salary of AED40, 000, you will be eligible for a AED3 million loan if you have no credit cards and zero existing liabilities. It
is important to note that if the income/profile of one partner is sufficient to guarantee mortgage loan eligibility, then the income of the other partner will not necessarily be a factor in the loan eligibility/qualification process. However, on a joint mortgage with the title deed in both names, both owners will be financially liable whether or not repayment is being handled by either partner.
From the date of submitting the application, how long does it to get a mortgage pre approval? What are the different stages? Depending on the lender, the client’s profile, the transaction type and if the information provided by the applicant is factual, getting a pre-approval usually takes anywhere between three to five days. The pre-approval process is basically the same for all lenders and usually involves carefully examining the applicant’s submitted documents, conducting a credit check with the UAE central bank to assess the applicant’s financial position, conducting a security check to determine applicant’s status, determining the applicant’s debt service ratio and eligibility status and coming up with an approved loan amount based on the applicant’s risk profile.
If you have any mortgage related queries please email editor@propertyonline.ae
January 2015 Issue -26 /// 16
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MARKET
OIL ‌ COOL HEADS REQUIRED Mohanad Alwadiya, MD of Harbor Real Estate & Instructor at the Dubai Real Estate Institute, the official training & certification arm of the Dubai Land Department
T
here is no denying that oil is really, really important. Those that dismiss the possible effects that significant shifts in supply, demand, prices and politics on economies will be denying history and ignoring logic. But those that overestimate the effect of tumult in the oil industry only serve to exacerbate or magnify fears of unlikely events occurring. If there is one thing that we should have learned from the recent global financial crisis, it’s that cooler heads are
January 2015 Issue -26 /// 18
more likely to prevail. The reason why this should be is that cooler heads are more adept at separating emotion from logic, cause from effect and fiction from fact. The recent reactions to the dramatic reduction in oil prices have been, while understandable, disturbingly overdone. Why disturbing? Because reactions often reveal underlying thinking (or lack thereof) that drove recent reactions far from rational. The reactions of stock markets globally, mainly on cue from the US, were noteworthy
because of their rapidity and severity. They were also noteworthy because of the lack of cool headed analysis that should have been applied to the dramatic price shift that theworld’s most vital and essential commodity experienced. The old adage of panic breeds panic sprung to mind as the flurry of phone calls that I received from investor clients, finance brokers and journalists provided me with a barometer as to the level of unease that surrounded the likely effect of the oil industry machinations
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The most disturbing theme that was common to all the calls I received was the short-sightedness of the opinions and concerns being offered. Little thought was being given to a balanced analysis of what a decline in oil prices really means in terms of demand for Dubai’s real estate in the long term. For a start, those in the oil industry understand that, given the costs of exploration and high level of capital required to commence green-field operations, careful consideration must be given to possible price fluctuations to ensure continuity of profitable operations. In ensuring that excess profits in the times of high prices are held in reserve for the times when prices fall, established players in the industry can “smooth out” the peaks and troughs of oil revenues. So, while many of the shortsighted doomsayers were predicting a virtual halt in public spending and infrastructural investment in the UAE, they forgot that a virtual decade ofrecord oil prices has enabled Abu Dhabi alone to accumulate an estimated US$ 800 billion in reserves. Needless to say, it would take an extended period, possibly a decade or more, of severely depressed oil prices, for those reserves to be diminished. Not that Dubai would be wholly relying on those reserves anyway.
With an economy that has diversified to the extent that only 6% of the Emirates GDP is reliant upon oil, and that a lower oil price will actually assist the growth of more prominent economic drivers such as trade and tourism, the Emirate does not appear to be particularly vulnerable to a temporary dip in oil prices. Similarly, the established non-government oil conglomerates which enjoy lower costs of production due to more established operations and older, lower cost extraction methods are also in a position to absorb a lower oil price. In reality, it is only the “Johnny come lately” high cost operations, some of which are highly leveraged, that are threatened. But as they say,
there is nothing like a good industry shakeout to bring markets back into equilibrium. Which is not to say that there are no shorter-term advantages to a lower oil price. There are. If you come from a country that has to import all of its energy needs then a decrease in the price of oil can help relieve the pressure on costs associated with manufacturing, distribution, travel, tourism and even the cost of commuting for any family with a car.
The increase in disposable income can be a significant catalyst to economic growth, something which is being chased by every country in the world. It just so happens that many investors that enjoy the returns that Dubai’s real estate contributes to their coffers come from countries such as India, a country which benefits enormously from cheaper energy. As a matter of fact, other than Russia which is mired in issues larger than just the price of oil, the vast majority of nationalities that comprise the Dubai investor mix will either not be affected or will tangibly benefit from a lower oil price. So why the panic? There has been almost universal agreement that the real estate Industry in Dubai has achieved a level of maturity that enabled it to successfully manage the huge risks associated with being the hottest real estate market in the world over the last couple of years. So why would it succumb to this latest development and collapse with a resounding crash? Well … it won’t, simply because there is no fundamental reason why it will which will pass the test of reason and logic. Unfortunately, many of the calls I received came from shortsighted stakeholders, some over leveraged, whose debt position is such that any slight perception of increased risk generates irrational behavior. They easily gravitate to doomsayers who can only see the negative side to any equation adding momentum to baseless fears and negative rhetoric. As an industry, we need to understand that there will always be change and challenges. It is a measure of our maturity, as to how we consider, analyze and address issues that threaten to affect our desired state or outcomes. Clearly, we have a way to go.
January 2015 Issue -26 /// 19
MARKET
on the direction of Dubai’s real estate industry.
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COVER STORY
TRUST…
G&Co is all set to create history in Dubai’s real estate market. The developer’s first of the three projects so far, Millennium Estates in Meydan, is on track to being delivered six months before the original handover date. By Binesh Panicker
T
he biggest challenge for a new developer in a market like Dubai, which went through a downturn, is to gain the confidence and trust of the buyers and investors. G & Co successfully managed to launch three projects with two of them getting sold out immediately while the third one is being sold currently. However, the developer, although very new at the time of their first project in March 2012, was quick to realize that what mattered was to deliver a high quality project on time and if possible, before time. Their first project Millennium Estates in Meydan was sold out in 40 days and it gave G&Co a lot of confidence to launch their second January 2015 Issue -26 /// 20
project; Grand Views, which was also sold out in record time, followed by the third project Millennium Square launched recently. Zafer Taher, CEO, G&Co, says they believe in delivering good quality projects on time so that buyers continue to have faith in them in the future.
ZAFER on The beginning The thought process started seven to eight years back. We realized like many other investors that Dubai’s
real estate market had huge potential and we thought of creating a fund in 2006-07, which was a private equity fund where people could invest in to buy some good assets in Dubai. We started buying what we thought at the time potential properties that, in the future, could give us good returns. One of those assets, which we purchased in 2006, was a large plot of about 5 million square feet of land in Meydan. It was still a desert but there was a talk in the town about Meydan becoming a massive community in the future. We thought of it as a location, which would be central and close to everything and become
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COVER STORY “FOR THE RECORD, WE WERE THE FIRST DEVELOPERS TO LAUNCH A PROJECT IN DUBAI DURING THE PERIOD OF RECOVERY. WE REALIZED THAT THERE WAS A LOT OF APPETITE IN THE MARKET FOR GOOD PROJECTS THAT OFFER FUNDAMENTALS SUCH AS GOOD LOCATION, RIGHT PRICE POINT AND GOOD DESIGN.” ZAFER TAHER, CEO, G&CO
a prime asset in the future. We had also acquired assets in Khawaneej and Emirates Road. In beginning of 2008, we realized that perhaps we might be facing a scenario. We didn’t predict the global melt down, but we thought that perhaps the international markets were a bit jittery at the time. We obviously had good financial advisors in the fund, who advised us to wait for six to seven months before we would launch the project and they were right because in August things started looking really dire and by November you know where we were. So we had to make a difficult decision: whether to leave the asset
and wait for the crisis to be over or sell and cash out at whatever price we could get. We knew Meydan was such a prime location. Knowing Dubai very well, knowing that one day we will be so central, we decided to keep it, which was a very good decision. We sat on the assets until 2012 at a very high cost, when people started talking about a recovery in the market, but still nobody was talking about launches. However, we decided, after consulting our sales partners and advisors, to launch the project as we felt the grounds were fertile enough and that people wanted Dubai to come back into the game. And in
March 2012, we took the plunge. For the record, we were the first developers to launch a project in Dubai during the period of recovery. We quickly realized that there was a lot of appetite in the market for good projects that offer fundamentals such as good location, right price point and good design.
Millennium Estates G & Co was the only developer at that time offering off-plan properties and the market was still reeling from the past three to four years of uncertainty. We had to offer something special and, with our business partJanuary 2015 Issue -26 /// 21
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COVER STORY
do better than others, you need to offer bigger, higher specs at a lower price point. That was the first point. The second point was delivery. The entire project was sold out in 40 days, as the buyers really liked the location, the quality and the price point. We had to do a lot more in terms of price point, design and payment plan. The payment plan was 25%-75%, which was unheard of. Now Millennium Estates is on target to be delivered six to seven months before the due delivery date. The villas will be ready for handover by June or July this year. The sizes of the villas range from 5,400 square feet to 6,800 square feet and will also feature large green
ners and advisors, we decided the price point and payment plan might help overcome those fears. There is, of course, a risk for the developer but we also have to think of the end users as they are also taking an equal if not larger risk. If you try to remove a little bit of that concern by making the payment plan more flexible and achievable, then the end user will be more confident. Millennium
January 2015 Issue -26 /// 22
Estates, which is worth AED1.5 billion, features 198 luxury villas located on Meydan’s south extension. For G&Co, it was our first project and we needed to prove ourselves in the market. It was very difficult for a newcomer to come into Dubai after the crisis and launch a project. We took a conscious decision that we should get the basics right. If you want to succeed you need to
“IF YOU WANT TO SUCCEED, YOU NEED TO DO BETTER THAN OTHERS, YOU NEED TO OFFER BIGGER, HIGHER SPECS AT A LOWER PRICE POINT.” ZAFER TAHER
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your typical development. Perhaps our return on investment is lower today than where it should be, but we believe that building the brandname and taking it forward on the back of Millennium Estates will help us achieve better results in the future. Our buyers include Emiratis, GCC nationals, Indians, Southeast Asians, Chinese, Russians and Europeans. It is a mix bag; it’s a typical textbook Dubai demographic.
Grand Views
spaces with walkways and common parks. We started selling the units at AED1,050 per square foot, which was at that time about AED100 to AED200 below the nearest benchmark. In phase II, we had incremental price increases of about AED75 per
square foot. We target 25% internal rate of return (IIR) on its investment in the project. With Millennium Estates it’s close. Remember the cost of financing for us because of the payment plan is higher and the cost of construction is much higher than
AED1.5 BILLION (The total value of Millennium Estates)
AED2.48 BILLION (The total value of Grand Views)
AED2. 8 BILLION (The total value of Millennium Square)
AED4.3 MILLION (Price of a villa in Millennium Square)
January 2015 Issue -26 /// 24
It is a continuation of Millennium Estates. We listened to our buyers and felt that there was a need for smaller units for smaller families but with the same quality that G&Co offered in Millennium Estates. Grand Views is an AED2.48 billion development, featuring 300 five-bedroom townhouses and 176 villas. The villas were sold out in no time. The construction has started already and we will try and deliver slightly before the due handover date to keep this track record going. It will be ready by end of 2016.
MILLENNIUM SQUARE: G & CO’S LATEST OFFERING After the successful launches of Millennium Estates and Grand Views, G & Co recently announced their latest development in Meydan; Millennium Square, which is an AED2.8 billion high-end residential community. The rapid construction progress of the developer’s previous two projects has further cemented G & Co’s commitment to delivering their projects on or before time, which will go a long way in boosting the confidence of the buyers and investors. This new community will have semi-detached villas in line with the existing demand in the market. The size of a villa is 3,479 square feet with the prices starting from AED4.3 million. Millennium Square also boasts an attractive and flexible payment plan of 30%-70%. According to the developer, like its previous developments, Millennium Square is also attracting attention from a huge number of buyers, with 100 units already sold within days of the launch. The project is expected to be delivered by the last quarter of 2016.
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ECONOMIC GROWTH AND SUPPLY TO BALANCE THE MARKET AS 2015 PRICE PACE SLOWS How is the market expected to fare this year? By Nicole Walter/freelance writer
January 2015 Issue -26 /// 25
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T
he second half of 2014 hinted at how this year would start by putting the breaks on the 2013 frenzy as the market stabilizes, preparing for future growth. Setting the tone, Craig Plumb, Head of Research at JLL MENA, predicts a relatively subdued Dubai residential market, trading in a narrow band of prices of less than 10% up in some, down in other locations, for this year. “This stability is to be welcomed as it will allow the city to regain some of its competitiveness, which it has lost as a result of unsustainable growth in prices over the past two years. Dubai will continue to attract businesses and residents looking to benefit from its strategic location within the region,”
he remarks, adding that it appeared the Abu Dhabi market had more growth left for prices to increase more quickly this year. John Stevens, Managing Director at Asteco Property Management, points out that the forecasted supply of around 30,000 new homes, which matches the firm’s own internal research counting a required 24,000 apartments and 6,000 to 9,000 villas, would meet demand. “These homes will come online within the next two years, giving Dubai residents a breather when it comes to choice and, hopefully, a return to relative affordability,” he
30,000 FORECASTED SUPPLY IN
2015
30% VACANCY RATE IN OVERALL DUBAI OFFICE MARKET
5% DUBAI’S ECONOMIC GROWTH
January 2015 Issue -26 /// 26
Sheikh Zayed road , Dubai
says. However, most units won’t be available for rent before the end of 2016, and despite ongoing price stabilization, John alerts prospective tenants shouldn’t hope to bag a bargain in their preferred location or building, either. “Rent increases will continue for very specific developments and products in line with demand and are contingent on the type of ownership structure. While 2016 may feel like an interminable wait for many frustrated tenants, it will also provide much-needed stock in the run-up to Expo 2020,” he adds, remarking that a final tally of the required units for this game-changing six-month festival is as yet unknown.“However, the spectre of rampant vacancy levels due to a surfeit of oversupply post-Expo is nothing more than an urban myth,” he remarks. Nicholas Maclean, Managing Director at CBRE Middle East would concur, pointing out that it was the numbers of new Fortune 500 companies setting up in Dubai already today, despite the Expo, which were driving the market. “We have a greater level of interest to expand operations, bringing new people, which can put down roots here, than we have ever had in our history,” he adds. “If we are growing our population to three million plus here, then actually the housing stock is not enough,” he says, conceding that a large proportion of those may need affordable housing. Nicholas, however, highlighted the strategic vision to transform the
EXPECT THE BEST
other tier of the market - managed office portfolios at single-owned buildings are full. It isn’t the location, or the building quality but the ownership structure, which puts companies off. However, Matthew points out that in some areas such as in JLT, where a lot of SMEs take start-up offices, strata still works.
“RENT INCREASES WILL CONTINUE FOR VERY SPECIFIC DEVELOPMENTS AND PRODUCTS IN LINE WITH DEMAND AND ARE CONTINGENT ON THE TYPE OF OWNERSHIP STRUCTURE. WHILE 2016 MAY FEEL LIKE AN INTERMINABLE WAIT FOR MANY FRUSTRATED TENANTS, IT WILL ALSO PROVIDE MUCHNEEDED STOCK IN THE RUN-UP TO EXPO 2020.” JOHN STEVENS, MANAGING DIRECTOR AT ASTECO PROPERTY MANAGEMENT
nature of the existing economy to increase the proportion of those that can have an impact on the economy, rather thanjust some spending power, which would increase demand for the high-end realestate being created.
Demand for office units CBRE has noted current interest for offices coming from the oil and gas, pharmaceutical, technology and financial sectors, as well as retailers supporting their expansion with regional HQs. “Law firms are very active right now and their expansion is always a good indication of the market. APAC FDI companies are also relocating components of their business to Dubai to target Africa from here,” adds Nicholas. These developments bode well for residential but obviously for the office market, which continues to experience vacancy rates of an average of 38% for Dubai overall, thanks to the continuing overhang of boom-time strata buildings nearing completion. Matthew Green, Head of Research & Consultancy at CBRE Middle East, says the office stock has doubled since 2008 and whilst strata fractional ownership space isn’t easy to fill, the opposite is true for the
Vacancy rates at secondary offices have actually gradually reduced, and outperformed, at a 12% y-o-y increase, prime offices but largely due to the fact that they were coming from a very low base. Prime rents are touching the AED2,000 a square metre mark, and increased by 6% y-o-y. Matthew expects this trend to continue. There doesn’t seem to be a relief in sight either, as developers are forced to complete what they had originally sold to a multitude of investors. “For now that situation is not going to improve, a lot more is coming through in Business Bay for example. Some are to do well there, but we’re talking about two single-ownership properties out of many,” says Matthew. He says some developers solved the conundrum by buying back offices sold as a fractional product from the owners and made it attractive again for occupiers, but they are far and few in between. “The problem is to get original investors to see a single viewpoint, some just added to them to their portfolio, as in residential, and are not interested in even selling or leasing. So, there are many products in this market which are never going to see high occupation,” he explains. “No one in their right mind would develop a strata office today as the market is not there, and what is being developed that corporations are looking for, large floor plates, is relatively piecemeal,” Matthew adds. The reason being, although the market is exceptionally strong for that type of product, is the potential risk of holding the asset for many years to gets its value, and the returns and wider vacancy rates have also been off-putting. “Yet, the developers who pushed that button are benefitting form the fact that there is little competition in the market,” Matthew adds. The situation means that the 80 live requirements for large offices CBRE has on their books, including from the US and Western Europe, either wanting to bring their staff under one roof or new to Dubai, have to improvise. “One firm requires 100,000 square feet and it will depend on
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may spread into the last quarter of 2015 unless a good number of new investors pour in, or end user/occupiers decide to buy the properties for which they pay a good rate of rent,” he says, while he recommends watching Abu Dhabi closely. “Considering the size of the market and upcoming supply, the slowdown may last longer than Dubai in 2015. Most likely it’s a year to start considering significant levels of investment with lowering price levels,” he says.
Green Community , Dubai
their timing if we can find continuous floors, it almost doesn’t exist now. The new supply that is coming in DIFC, or developed by Emaar, is two years away, which will have an effect on the rental values over the next couple of years,” he says.
Ahmet Kayhan, Co-Founder & CEO of REIDIN, would concur expecting both, Dubai and Abu Dhabi, markets to be slower this year than last. “Dubai’s flattening and correction
Residential units While it will be the office, hospitality and industrial sectors to perform best in the UAE this year, according to a recent JLL MENA Investor Sentiment Survey, respondents are thinking of taking their money into the residential sector in KSA, as well as looking at opportunities back home in the UK and US. “Investors are recognising that there is relatively little further upside in the residential market in the UAE,” says Craig. However, the UAE’s emergence as a global business hub and its mega infrastructure projects will sustain the Emirates’ maturing residential real estate market, says Faisal Durrani, International Research & Business Development Manager at Cluttons. “They are all expected to fuel the development of the real estate market in 2015 and beyond. However, we expect growth to take on a much more muted tone over the next three to six months as the market adjusts to the evolving conditions,” he adds. January 2015 Issue -26 /// 28
THE UAE’S EMERGENCE AS A GLOBAL BUSINESS HUB AND ITS MEGA INFRASTRUCTURE PROJECTS WILL SUSTAIN THE EMIRATES’ MATURING RESIDENTIAL REAL ESTATE MARKET. THEY ARE ALL EXPECTED TO FUEL THE DEVELOPMENT OF THE REAL ESTATE MARKET IN 2015 AND BEYOND. HOWEVER, WE EXPECT GROWTH TO TAKE ON A MUCH MORE MUTED TONE OVER THE NEXT THREE TO SIX MONTHS AS THE MARKET ADJUSTS TO THE EVOLVING CONDITIONS.” FAISAL DURRANI, INTERNATIONAL RESEARCH & BUSINESS DEVELOPMENT MANAGER, CLUTTONS.
Matthew is content that the hyperinflation, which had dramatically increased the cost of living for everyone is subsiding. “We are still seeing transactions but at a lower rate. As the market is slowly maturing, we can look forward to a little more stability. We don’t expect to see a repeat of this year’s performance in 2015 but far more marginal growth levels,” he says, adding that the announced large master-planned projects are signalling supply isn’t about to slow down. Buyers to snap up this supply will be around. Nicholas says the buyers’ make up hasn’t changed much over the years, as Dubai is still seen as a safe haven and a good bet to invest in the GCC, even if it goes through blips like all markets do. “There is still quite a large proportion of people, who buy apartments just for capital growth and we don’t see that mentality changing. The market is relatively well insulated by the 4.5% UAE (5% Dubai) economic growth with people coming to stay. I don’t see anyone’s rents falling of the cliff right now,” he remarks. Matthew reckons that more could be done, if authorities wanted to regulate the off-plan market further, to reduce the risk of boom and bust cycles, although he forecasts a period of stability. “Obviously, it is a market, which attracts speculative investment from cash buyers, these factors really increase the volatility, and they could tighten it up more to improve that. On the flipside they don’t want to put off investors, Dubai obviously functions because of these mechanisms as well,” he concludes.
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THE BEST OF ALL WORLDS Discovery Gardens, a treasured haven for residents By Neha Kaul/freelance writer
I
magine chirping birds and green landscapes juxtaposed with tennis courts, children playing, worldclass shopping and easy access to bustling business districts – and what you get is Discovery Gardens, a treasured haven for residents. Launched by Nakheel in 2004, Discovery Gardens is a themed residential community inspired by nature, providing an exceptional family-oriented environment to its inhabitants. Since its handover in 2008, the modern community of 291 buildings comprising over 26,000 apartments has been a preferred choice for families. “With my office located in Dubai, the daily commute from Sharjah to Dubai had become a grind for me. I had read a lot about this project of Nakheel and a few friends who had moved here had good things to say about it'', says Venkatsubramanian. Economically also it made sense as the rent was reasonable, including cooling charges and all other maintenance handled by the landlord. But what clinched the deal was the drive through the Discovery community. The chirping of the birds, the layout, the greenery, the kids play areas, the peace and quiet, all within easy reach of Sheikh Zayed Road had me and my wife convinced that this is where we wanted to live and see our kids to grow up. So when prices fell due to the property market crash in 2009, we took advantage of the dip and moved”, says Venkatsubramanian, a long-time resident of Discovery Gardens. His wife, Priya adds, “Even though the place was still developing at the time, when we looked at other options like Bur Dubai, Ghusais or Deira, Discovery was great value-for money for the holistic lifestyle it offered. For me, good neighborhood schools like Winchester and DPS as well as the Jebel Ali hospital within
January 2015 Issue -26 /// 30
The Venkatsubramanian family
the community mattered a lot.” The cosmopolitan community’s proximity to Dubai’s major business and economic centers including Dubai Internet City & Dubai Media City makes it an ideal combination of countryside living within city limits. The strategic location close to Ibn battuta, the world’s largest themed shopping mall, easy access to the Ibn and Nakheel Harbor Metro stations and a proliferation of amenities has also upped the community’s popularity quotient over the years. Priya elaborates, “The place is very self-sufficient now. Other than Ibn Battuta and Geant, we now have ample conveniences from home-delivering supermarkets to nurseries, pharmacies, gymnasiums, restaurants and salons. Training and activity centers have also come up within Discovery, with bus services provided by institutes in Jumeirah Lakes Towers. And the well-maintained landscaped gardens, courtyards, courts for tennis, basketball and volleyball, community swimming pools complete with lifeguards, kids play areas and the extensive parking make this place ideal for families”. But the increased popular-
ity has meant a greater inflow of families and worsening traffic conditions. Although an additional entry/exit point has alleviated traffic woes to some extent, residents feel much more needs to be done given the rapidly increasing load. “Over that last five years, they have added just one exit. While this has helped a little bit, we need a lot more, as the number of residents and cars has also gone up considerably. Also, opening U-turns and approach roads towards the schools area and the new Ibn Battuta Gate exit will reduce the strain on the main arterial road during peak hours”, feels Venkatsubramanian. Other than the traffic, the foul odor emanating from theneighborhood sewage treatment plant in Gardens is a cause for discomfort. Despite these glitches, residents are quick to point out that the pros far outweigh the cons. “We feel blessed to be living here. It was the best decision for us” adds Priya. Residents, however, feel minor improvements could go a long way in further positioning the community as a classy district. These include increased overall cleanliness and better lighting for the community areas. Priya explains, “It’s a family oriented place with benches for relaxation and play areas for kids. It would be nice if these places were brighter and better lit”. Other suggestions include a community hall for the use of residents, as well as community events that will allow residents to bond and thrive, and add vibrancy and value to the quality of life of Discovery inhabitants. With recent ramped up safety measures, including physical security guards, surveillance cameras and access card control for all buildings, as well as enhanced street lighting, illuminated direction boards and a better road network, Discovery Gardens will continue to maintain its attraction as a community offering reasonably priced sophisticated living.
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ROBUST COMMERCE Discovery residents prefer ‘neighborhood markets’
W
ith a captive resident population of nearly 60,000, Discovery Gardens presents ample commercial opportunities for shops and local market places. Speaking to the owner of Aneeq Fashions, a boutique store retailing in formal ethnic Indian wear as well as smart casual western outfits, we understand what makes the commerce district in Discovery Gardens tick.
spike in rents mid last year has seen a big outflow of the middle-income residents, nearly 50% as per Arif, which he feels has impacted their business considerably. With a higher income group and different nationality profiles coming in, the store has adapted its styling to suit their taste as well. But business has not recovered as desired. “These people prefer high-end stores and lifestyle shopping in malls. It’s difficult to attract them to our shops”, adds Arif.
“I have been living in Discovery since 2009, and I loved our life here. But I could feel the gap for an outlet with ethnic Indian wear to cater to the very large Asian and Indian crowd. Something small and simple, where people could come in quickly, shop and leave. Not like going to a mall. So in 2012, seeing the growing opportunity for the success of such a business, we launched our store. And till date we are the only stand-alone shop of its kind, catering not only to the Discovery crowd, but also Gardens, Marina and JLT. And business has been great”, says Mohammed Arif, owner, Aneeq Fashions. With the diversifying inhabitant base of the community, and sensing the lack of such services in Discovery, the store added tailoring for Indian outfits as well as alteration services for men’s clothing, targeting another recurrent need of residents.
The well maintained streets, extensive parking, recently ramped-up lighting as well as the general air of vibrancy and security for families has continued to keep Discovery Gardens at the top of the list of preferred communities. And this has aided the footfall in shops located in the local markets. Enhanced popularity has meant a constantly growing crowd, thereby making commerce a more viable and attractive option. For shop-owners, the enhanced street lighting, improved access, metro proximity, as well as the addition of illuminated direction signboards have made navigation simpler, eased operations and impacted sales positively. “Discovery is very popular as a place to stay. So the crowd never decreases, only grows. Plus access from other adjacent areas like JLT, Marina has become easier and has also improved business. Now with the Al Furjan villas, and more community projects around the area being handed over, the future looks even brighter”, adds Arif happily.
The cost-effective and reasonable rent base of the community has attracted the middle to high-income bracket, which underscores the popularity of neighborhood stores. Arif supports this view by adding, “The rents here are very reasonable for the size of apartments and the quality of life that you get. So it attracts a lot of middle to high-income crowd. These are the people who prefer to shop in independent stores rather than malls and are not brand conscious or specific, which is
Mohammed Arif, Owner, Aneeq Fashions
why we saw roaring business over the last few years as rents remained at the stable low end. We even expanded our store this year to cater for the heavy festival season shopping and the growing crowd”. Other than restaurants, which face tough competition from the malls and other independent outlets, most other commercial establishments in Discovery benefit from the ‘neighborhood market’ concept, preferred by residents. For many, like Aneeq, competition lies as far away as Karama, thus assuring a captive audience. “Our competitors are in Karama and Bur Dubai. And many husbands actually thank me as them and their families prefer shopping locally rather than commuting all the way. They can save on the Salik fee, and the wives can come in anytime to shop for themselves, for the kids and for the husbands. Plus there is nothing similar to us in and around this whole area, in terms of the quality of what we offer, and the price we offer it at. And we have maintained it, because it fits in well with the profile of the people living here and in neighboring districts,” affirms Arif. On the downside, a recent
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Tanya Kadysheva Russian, Taktical Realty Group Sale Agent, RERA: 27207
When did you come to Dubai? In 2012 Previous profession: Internal Audit Manager First sale in Dubai (villa, APARTMENT or commercial? Which year? And value of the transaction? Marina Wharf Apartment, Selling Price at AED 1.9M, in year 2012 What you like about your profession? I have learnt that there is no substitute for hard work and client satisfaction. As an agent, I focus my energies on being professional and client orientated; these traits are continuously valuable in an ever-competitive market such as Dubai's. Hobbies: Reading, cooking and swimming Favourite hangouts: Malls, Madinat Jumeirah and beaches Why you love Dubai? The city is fast growing and there are lots opportunities available for each and every individual
Oxana Victor Republic of Moldova Gold Coast Real Estate Sales Executive, RERA: 43454
When did you come to Dubai? First time I came to Dubai in August 2013 Previous profession: My previous profession was translator of four languages in one of the most influential companies in my country that deals in several fields on an international level. First sale in Dubai (villa, APARTMENT or commercial? Which year? And value of the transaction? My first deal was an apartment in Sports City which I sold for AED1.1 million in March 2014. What you like about your profession? I love my profession for its endless opportunities. On a daily basis, I meet different people with different mind setup and preferences that give me the best experience regarding knowledge of the business and communication with the people. With each meeting more doors open, which creates more chances for business and better future. Hobbies: My hobbies are travelling and collecting specialties from different countries. Why you love Dubai? I love Dubai because it’s a leading city; it’s the best place I have ever been to.
January 2015 Issue -26 /// 32
Alex Prestedge British, Prestige Real Estate, Senior Property Consultant, RERA:11309
When did you come to Dubai? Moved to Dubai in August 2008 Previous profession: I have always been an Estate Agent. First in Windsor (in Berkshire) from the age of 17 (I am now 34) First sale in Dubai (villa, APARTMENT or commercial? Which year? And value of the transaction? The Residences, Downtown. One-bedroom apartment sold in September 2008 at AED925,000 What you like about your profession? Having been in real estate for over 17 years, it is safe to say this is the only profession for me. I have been selling property in The Downtown Burj Khalifa area for the past six years and I have met thousands of buyers, sellers, real estate agents, developers, celebrities- and even royalty from every corner of the earth! The little added bonus to my job is getting to do viewings in one of the most famous buildings in the world, not to mention the tallest‌ Burj Khalifa Hobbies: Playing football three times a week, walking my dog on the beach, running. Why you love Dubai? I love Dubai because of the amazing ambition. I couldn’t believe this country could do anymore but having just been to Cityscape, I was wrong! There are so many amazing up and coming things and this is only the beginning. I planned to come here for just two years, but I am now proud to call Dubai my permanent home.
Navid Hamedi Iranian, Kensington Finest Properties International, Senior Property Consultant, BRN 29916
When did you come to Dubai? August 2008 Previous profession: I was only a student before coming to Dubai First sale in Dubai (villa, APARTMENT or commercial? Which year? And value of the transaction? It was an apartment worth AED3.8 million in 2008. What you like about your profession? I am able to interact and deal with VIP's and big business persons. Most importantly, I get to learn a lot from these successful people. Hobbies: I love playing football during my leisure time. Why you love Dubai? Dubai is a very unique and cosmopolitan city, it is also a fast-growing city and a pretty safe place to live and raise children. Dubai is tax-free as well.
January 2015 Issue -26 /// 33
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CREATING ‘PLACES FOR LIFE’ Ajman’s Lifestyle Development Al Zorah’s first phase is expected to be ready by early 2016. By Nicole Walter/freelance writer
O
n the drawing board for quite a few years, Al Zorah’s developers a JV between Solidere and the Ajman government have been quietly working on the project’s infrastructure and started construction of its first phase to complete by early 2016. Lebanese developer Solidere, known to create ‘places for life’, master-planned this huge 5.4 million square metres freehold and free-zone development, which could reach an investment value of AED60 billion, taking advantage of the unique beauty spot it occupies along the coast of Ajman, with pristine beaches, dunes and mangroves where 58 species of birds live, including the attractive pink flamingo. Future residents paying a visit to the site would already spot the advanced greenery, courtesy of the 6,000 square metres nursery on-site, at the 18-hole golf course by Nicklaus Design and managed by Swiss Troon Golf, as well as glistening lake waters. “We already have nine holes ready and the rest in June. Once the grass matures in fall 2015 we expect it to be playable, when the villas should be ready for handover as well,” Imad Dana, CEO of Al Zorah Development Company, says. The 42 four-to-six bedroom golf villas, offering plenty
January 2015 Issue -26 /// 34
of space from 4,800 to 6,000 square feet were launched for sale at this year’s Cityscape starting at AED3.8 million. Coming in a contemporary and airy design, each villa sports has its own swimming pool. Although pretty much a traffic free area, each villa has twoparking spots and visitors will also find dedicated spaces. WE ALREADY HAVE NINE HOLES READY AND THE REST IN JUNE. ONCE THE GRASS MATURES IN FALL 2015 WE EXPECT IT TO BE PLAYABLE, WHEN THE VILLAS SHOULD BE READY FOR HANDOVER AS WELL.” IMAD DANA, CEO, AL ZORAH DEVELOPMENT COMPANY.
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What to expect? “Residents will enjoy unobstructed views of the golf course and mangrove forest, each taking up 1 million square metres, in close proximity to the lake,” Imad points out. The distance from the entrance ‘The Gateway’ of the development at Sheikh Mohammed Bin Zayed Road down to the beach is around four kilometres, an enjoyable trip by golf cart on a dedicated trail. Buyers automatically become golf club community members, which shares a site with a wellness centre to be built and operated by a Turkish developer, who plans to offer detoxification programmes and the likes. The villas fall into the ‘Golf Course’ district of Al Zorah, an area to enjoy low density, even when the second phase completes between 2017 and 2020, adding a mix of 60 villas and townhouses, and nine apartment buildings no higher than seven storeys.“We’re keeping the flexibility to build more larger or smaller villas depending onwhat people want, although one idea is to develop luxurious villas in their own closed community,” says Imad. The developer is making sure that residents moving in and the ‘leisurely’ lifestyle promised will run as good as in tandem. The infrastructure, roads and landscaping will be ready. Four marinas have already been created at ‘The Creek Side’ district and one of them will be furnished with pontoons and restaurants along the quay, which can accommodate up to 50 boats. In future, as the second phase, this area will become a fully-fledged high-end residential apartment, villa and hotel quarter affording views of the mangroves. Two hotel resorts, the Oberoi Al Zorah and Lux* Al Zorah are already under construction in the ‘The Beachfront’ district. The latter to be managed by the boutique Mauritian operator Lux* Resorts & Hotels,
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MARKET will feature only 110 keys, with the smallest room measuring 90 square metres. “The resort is really luxurious with a lot of space 100,000 square metres for the 110 rooms, and takes up 300 metres of our 1.6 kilometres beachfront,” says Imad. “This will be Lux* first resort in the Middle East and we chose them January 2015 Issue -26 /// 36
because we wanted an operator specialized in resorts, as opposed to a business hotel. We want guests to feel like they are in Mauritius without having to fly all the way there,” he adds. The Oberoi Al Zorah will be bigger with 190 rooms. “Whereas the Lux is more vibrant and family oriented,
with more outlets, five restaurants and a beach club with lounge and music, the Oberoi is known for quiet luxury, the client will enjoy a vast space, spa and restaurants but in calm surroundings,” Imad explains. The hotels complete the picture of the first phase of the development. “Everything in phase I is under construction at a cost of AED2 bil-
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MARKET RESIDENTS WILL ENJOY UNOBSTRUCTED VIEWS OF THE GOLF COURSE AND MANGROVE FOREST, EACH TAKING UP ONE MILLION SQUARE METRES, IN CLOSE PROXIMITY TO THE LAKE.” IMAD DANA
beginning 2017 and put into the hotel rental pool, we willstart construction and launch sales early next year,” he says, adding ‘The Beachfront’ has space for another four hotels one may become a 500-room hotel with water-park. Much of the development of the second phase is in the hands of sub-developers. “We’ve already handed over the plots to our initial investors and expect them to start building once they see the success of the first phase,” says Imad, adding that judging by the interest shown in Al Zorah the second phase could move quickly. “It is a nice community with no traffic. We are attracting local interest from Ajman and other emirates, people
5.4
lion, and we expect it to be open by end of 2015, beginning 2016,” says Imad.
Second phase The design and construction of the second phase components are running kind of alongside the first phase,
says Imad. Those include a boutique resort with on-the-water villas near the golf course, as well as a beach club and 300 metres long boardwalk with shops and restaurants and three residential apartment buildings serviced by the already appointed hotel operators, coming in distinct contemporary designs at ‘The Beachfront’. “The residences could even complete by
SIZE OF AL ZORAH MILLION DEVELOPMENT SQ. FT. AED STARTING PRICE OF GOLF VILLAS MILLION
3.9
THE NUMBER OF ROOMS AT OBEROI AL ZORAH)
190
January 2015 Issue -26 /// 37
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MARKET who have businesses and would like to live this lifestyle and can commute even to Dubai, thanks to the upgrade of Emirates Road and National Paints bridge, it only takes 25 minutes,” he explains. However, he added that the project would be grown organically, depending on the excitement it would generate and marketconditions, the second phase may or may not be ready by 2020. “It has to
come naturally, we want end-users to come and enjoy a refined lifestyle and outdoor activities, such as jogging and cycling, as of course the beach. We reserved two-thirds of our master plan for public spaces,” Imad says. “We would also like to make the development affordable to a big segment of the market, keeping in mind near the beach we will go no higher than four floors yet have sea
views,” he adds. ‘The Peninsula’, as the spine of the development will be the last to be developed, complete with a pedestrian retail and leisure souk-style strip. It could also include Ajman’s first exhibition centre, according to the developer. “The Peninsula is really the third phase, we have to wait for a critical mass in the development to plan effectively, we may even include offices,” Imad concludes.
IT HAS TO COME NATURALLY, WE WANT END-USERS TO COME AND ENJOY A REFINED LIFESTYLE AND OUTDOOR ACTIVITIES, SUCH AS JOGGING AND CYCLING, AS OF COURSE THE BEACH. WE RESERVED TWOTHIRDS OF OUR MASTER PLAN FOR PUBLIC SPACES,” IMAD DANA
January 2015 Issue -26 /// 38
.
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HOSPITALITY
NEW HOTELS COMING ON LINE TO SOFTEN PERFORMANCE According to a recent CBRE report, Dubai today already houses 64,000 rooms, over double than that in 2005, with 3,500 keys alone having completed last year. By Nicole Walter/freelance writer
January 2015 Issue -26 /// 41
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HOSPITALITY
Business Bay , Dubai
D
ubai’s hospitality sector is as strong as ever, although experts have started to detect signs of performance slightly softening in some areas due to additions to the market since last summer and expect this trend to continue. According to a recent CBRE report, Dubai today already houses 64,000 rooms, over double than that in 2005, with 3,500 keys alone having completed last year. “We have been achieving 10% growth y-o-y since 2011. Supply has been growing at a fantastic rate, and whilst this year may not have reached the peak of last year, we’re still performing at a rate which is exceptionally high compared to the majority of other international markets,” remarks Matthew Green, Head of Research at CBRE Middle East. The consultancy firm predicts close to 27,000 new hotel rooms, including apartments, to appear until 2017, most of which
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January 2015 Issue -26 /// 42
will come on-line this year at just over 10,000, of which rooms slightly dominate at around 5,400 keys. Hotel rooms then clearly take over the landscape versus apartments, in 2016 and 2017 in terms of new sup-
GIVEN THE AMOUNT OF SUPPLY COMING ONLINE IN THE NEXT COUPLE OF YEARS WE HAVE TO EXPECT THAT SOME DEFLATIONARY PRESSURES WILL BE FELT ON ADRS, BUT WITH OCCUPANCY RATES STAYING SO HIGH, THAT’S NOT GOING TO HAVE A HUGE IMPACT ON THE HOTELS, BUT RATHER MEANS JUST A BIT OF A NORMALIZATION.” MATTHEW GREEN, HEAD OF RESEARCH, CBRE MIDDLE EAST
ply. JLL Hotels & Hospitality Group’s Hotel Intelligence Dubai 2014 survey meanwhile counts around 20 properties, around 4,600 rooms, due to open this year, although postponing hotel opening date isn’t unusual. “Over the year to August, the Dubai market has recorded occupancy rates of 78 percent, relatively flat compared to 2013,” says Craig Plumb, Head of Research at JLL MENA, remarking that last year was Abu Dhabi’s year, where occupancies rose from 64 percent to 71 percent (2013-2014). “For the first time ever, hotel occupancies in Abu Dhabi exceeded those in Dubai in July 2014, driven by attractive room rates with the daily average rate (ADR) over the year to August at US$133, although the Dubai market continues to experience much higher levels of ADR at US$238, and therefore enjoys a higher revenue per room (RevPAR),” he adds. Visitor numbers of close to six million, an increase of 27% from the first half of 2013 to the second half of 2014, saw guest nights increasing by around 15% to 22.6 million, according to CBRE, thus creating demand for new hotel openings. The firm measured the performance of upper scale (4*) properties, which managed to increase ADR by around 20% to AED867over 2012 and 2013, and rais-
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HOSPITALITY
ing performance again by close to 7% in the first nine months of 2014. While luxury (5*) hotels performed well, despite the rapidly increasing supply witnessed over the last three years, even surpassing the ADR AED1,392 achieved in 2013 at AED1,491 during the first nine months of 2014. “Given the amount of supply coming online in the next couple of years we have to expect that some deflationary pressures will be felt on ADRs, but with occupancy rates staying so high, that’s not going to have a huge impact on the hotels, but rather means just a bit of a normalisation,” Matthew comments.
Rates Hoteliers in Dubai in fact have little to complain about, as the performance of their properties is stellar compared to other countries in the region and indeed the world, even if they had to reduce expectations a little looking into the future. “This year and next, rates will probably have to soften, but one could maybe say that hotels are the victim of their own success, complaints by hoteliers are relative. Some are concerned looking at the huge pipeline, 35,000 already signed up for to complete by 2020 and other not yet known on the drawing board, but really hoteliers have nothing to worry about looking at the mid-to-long term,” remarks Guy Wilkinson, Managing Partner of Viability. Guy expects a temporary performance blip on the graph looking towards Expo 2020 between now and up to 2018, as supply readies for pre-event set up, event, as well as post-event activity, as Dubai’s Department of Tourism and Commerce Marketing (DTCM) would ensure that enough events etc. are being created to guarantee demand. “Hotels opening now will have to slice the pie a little bit as a supply and demand mismatch will occur over the next couple of years and that’s only normal. There will be a temporary blip on the graph in terms of performance but we’re talking a couple of percentage points only, any city goes through cycles, and Dubai seems to be reaching its shallow cycle that’s all,”
64,000
27,000
THE NUMBER OF HOTEL ROOMS IN DUBAI
THE NUMBER OF NEW ROOMS EXPECTED TILL 2017
January 2015 Issue -26 /// 44
More supply Matthew highlights that a lot of the new supply emerging in Downtown Burj Khalifa, Business Bay, DIFC and Sheikh Zayed Road, close to 8,000 keys, is focused on the corporate segment. Although he reckons that in the future more leisure focused supply would be coming through. “The market is still dominated by five-star product and I don’t think that is likely to change,” he says, despite the government pushing and seeing an uptake in the mid-scale segment. “As a tourism destination, Dubai is always going to remain a luxury destination,” he adds.
Luxury Hotel, Dubai
Among the list of new properties envisaged to open this year, are some brands new to Dubai, including the Hard Rock Hotel in the Dubai Marina - Marina 101, Rosewood, Starwood’s St. Regis in October and the W Hotel (Jan 2016) in Al Habtoor City alongside a second Westin for the Emirate, the Palazzo Versace, a Langham Hotel (2016), as well as Damac’s Paramount. “We have a lot of new names coming to the Emirate of Dubai, such as in the five-star segment, the Viceroy on Palm Jumeirah in 2016 and the Four Seasons Jumeirah Beach has just opened,” says Matthew. “Next year alone we have 10,000 rooms, and hotel apartments coming through, but a lot of that is from the likes of Damac, and at the moment and it remains to be seen how they actually stack up as a hotel apartment product, but this is what they have been launched and will be utilised as,” he concludes.
January 2015 Issue -26 /// 45
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HOSPITALITY
he adds. A recent market study by Viability highlighted that new hotels in town have already been influencing market performance in certain areas since last summer. “For example, the Jebel Ali area, which traditionally benefitted from frustrated demand from hotels along the central stretch of SZR didn’t get these clients last summer, which led to a softening of room rates. Hoteliers are wondering if they have to start seeing Jebel Ali and Al Barsha as self-contained areas. Indeed, they can look forward to Jebel Ali in ten years time becoming a multi-modal hub,” Guy says, adding that price competition on The Palm was also evident due to new properties opening there. “You have to be in spots like Downtown Burj Khalifa to charge good room rates, the further out you go out of town you have to be flexible. However, we need hotels in secondary locations, they may have to buy a bit of occupancy for the next couple of years by softening their rates, but this could be good for Dubai’s future as there is always a danger that it could price itself out of the regional tourism market,” he remarks.
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HOSPITALITY
Column
MANCHISE AGREEMENTS IN THE MIDDLE EAST
T
he increase in the number of hotel operators and expansion of global hotel brands into Middle East has placed pressure on operators to offer more competitive terms to owners. At the same time, owners have become more knowledgeable and savvy when negotiating management contract terms as the increased sophistication of hotel investors has led to a better understanding of hotel operations. The combined effect has been that the balance of power has largely shifted more in favour of the owner when contracting with many operators. Owners can now negotiate terms which increase their control, flexibility and leverage in the business and finances of operating decisions, while operators face more performance tests and incentives. Owners are increasingly thinking beyond profit and loss and have become more involved in key decisions, although there is still an obligation to limit this to key matters and not to interfere with the day-to-day running of the business. The maturing market has given room to the birth of the new form of mechanism called Manchise, which is still in its nascent stages in the region.
January 2015 Issue -26 /// 46
If you are a hotel owner who wishes to shop around the best branding/management strategy for your hotel, following are the triggering questions that would provide you insights in choosing the most advantageous management/franchise/ manchise model: · What type of owner are you? Independent, Private Equity, REIT? · Who can achieve the greatest profit from the hotel? How and Why? · Are you a skilled hotelier? What’s your reason for hotel ownership? · Could an existing brand speak to your target guests and add sales? · Will operators even consider your hotel facility, location and market?
Jitheesh Thilak BA, LLB (Hons). LLM (Int. Economic Law) Solicitor (England & Wales), Advocate (Supreme Court of India) e: jthilak@gmail.com
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“Manchise” is a concurrent trend with management contracts. The term is based on two words- management and franchise. A hotel operator takes care of management and franchise agreements together. For the first three to five years, the company operates the hotel under a management contract. Thereafter the local operator-owner or long-term lessee operator assumes the hotel’s operational responsibility under a franchise contract. “Manchising” is, as the name suggests, a
hybrid form of franchise and management agreements. The forms of contract can vary from a complete combination of both forms of agreement, to one that is initially a management agreement but which after an initial term, say three to five years, moves to a franchise relationship. The rationale behind manchising is that the operator has greater control over the operation of a hotel through their management at the outset of the relationship, which is not the case with a “pure” franchise agreement. This approach has clear advantages for operators launching new brands and/or entering the Middle East market. “Manchising” may provide an alternative to new owner-operators to get a fresh start, and why not to some already existing ones as well. Manchise model is ideal for budget and mid-market hotels where owners may be more closely involved with the day-to-day running of the hotel. Manchise is an evolving concept with advantages to the owner and the operator. As an operator/franchisor, it would be ideal to have complete control of the development,
pre-opening, opening and operational stages of the hotel where the most of the effort is required to establish the systems, procedures, hiring, training, cost control etc in the hotel for the initial years of operation. It gives new entrants into the industry the opportunity to learn the hotel business without jeopardizing their investment, and once the hotel operation is beginning to stabilise and mature, the owner will also be ready to run it as he wishes. From the owner’s perspective it is advantageous as the project itself would be on a ready built operational path while the transition happens to the franchise mode, wherein the owner has an option for an early divestment with no frills attached franchise agreement or the owner may also decide to run the hotel in an auto pilot mode as programmed by the operator during the initial management phase. From the investor/lender perspective, manchise option would be welcoming aspect as the most risky period in a hotel investment is the initial stages of operation, where the lenders have a comfort of the hotel being in the safe hands of the experienced hotel operator. Currently manchise business model is widely used in China, India and Europe, but is not yet common in the Middle East. This is not a new concept for the Middle East, but is expected to appeal to regional owners as the market keeps maturing.
January 2015 Issue -26 /// 47
HOSPITALITY
· Do lenders demand a brand or affiliation to provide mortgage funds? · Should you give up control, trust an operator and use asset managers? · Do you have capital to renovate and maintain the brand standards? · What is your long term/medium term exit strategy?
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FOR RENT V ILL A – R E F : R - 17 10 3 B E DS + ST U DY A R E ASQ . F T. : 2 , 4 5 6 LA N DSC A P E D G ARD EN A E D : 1 6 5,0 0 0 VILL A – R E F : R - 169 9 2 B E DS + ST U DY A R E A S Q . F T. : 1 ,79 4 G A R D E N A E D : 1 4 5,0 0 0 VILL A – R E F : R - 16 0 9 2 B E DS + ST U DY A R E A S Q . F T. : 1 , 69 0 G A R D E N / PA R K A E D : 1 2 5,0 0 0 F O R SA L E V ILL A – R E F : S 1 566 2 B E D + ST U DY A R E A S Q . F T. : 1 , 69 1 G A R D E N A E D : 2 ,079, 9 95 V ILL A – R E F : S 1 3 85 2 B E D + ST U DY A R E A S Q . F T. : 1 ,78 4 LA N DSC A P E D G ARD EN A E D : 1 , 979, 9 95 VILLA FULLY UPGRADED – REF: S 1396 2 B E D + ST U DY A R E A S Q . F T. : 1 ,70 0 LA N DSC A P E D G ARD EN A E D : 2 , 2 9 9, 9 95 VILL A – R E F : S 1 4 28 3 B E DS + M A ID + STU DY A R E A S Q . F T. : 2 ,73 4 G A R D E N A E D : 3 ,70 0,0 0 0 V ILL A – R E F : S 1 568 2 B E DS + ST U DY A R E A S Q . F T. : 1 ,79 1 G A R D E N A E D : 2 ,1 0 0,0 0 0
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BUILDING
BEDROOM
SQ.FT
SALE PRICE (ONWARDS)
MANCHESTER
STUDIO
380
620 K
DEC TOWER
STUDIO
500
750 K
ADDRESS DUBAI MARINA
STUDIO
548
1.5 MILLION
MARINA DIAMOND
1
575
800 K
MARINA PINNACLE
1
761
850 K
MARINA DREAMS
1
795
925 K
DEC TOWER
1
823
1.1 MILLION
ADDRESS DUBAI MARINA
1
850
2.3 MILLION
MARINA DIAMOND
2
1100
1.4 MILLION
MARINA WHARF
2
1200
1.7 MILLION
TORCH
2
1400
1.8 MILLON
MAG218
2
1799
2.1 MILLION
PARK ISLAND
2
1743
2.6 MILLION
MANCHESTER
3
1320
1.55 MILLION
MARINA PINNACLE
3
1583
1.79 MILLION
MARINA WHARF
3
1600
2 MILLION
23 MARINA
3
2189
3.5 MILLION
LA RESIDENCIA DEL
3
3442
7 MILLION
5 BR | TRIDENT BAY SIDE VILLA | BUA – 6900 SQ FT | PLOT 9000 SQ FT FULL MARINA VIEW | PRIVATE ELEVATOR | ROOFTOP JACUZZI | 2 CAR PARK , SMART HOME SYSTEM | 8.5 MILLION BEAUTIFUL 4 BR PENTHOUSE IN LE REVE | DUBAI MARINA | 6400 SQ FT | FULLY FITTED WITH RICCI MILAN KITCHEN | PENTHOUSES ARE CLASSIC STYLE WITH MODERN & CLASSIC STYLE | SP – 24 MILLION FULL FLOOR 8 BR PENTHOUSE WITH SIZE OF 12800 SQ FT AND 8 CAR PARKING’S ALSO AVAILABLE AT 56 MILLION
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E X E C U T I V E TOWE R B RENTED 1BE D+ LAUNDRY A R E AS Q F T: 1357 SHEIKH ZAYED ROAD VIEW A E D 1 ,6 50,0 0 0/ E X E C U T I V E TOWE R M (H OT D EAL) VACANT 2 BE DS + LAUNDRY A R E A SQ F T:1425 LAKE VIEW HIGH FLOOR A E D 2 ,0 0 0,0 0 0/ EXECUTIVE TOWER M (HOT DEAL) VACANT 2BEDS AREA SQ FT:1578 UNOBSTRUCTED SEA VIEW HIGH FLOOR AED 2,400,000/EXECUTIVE TOWER M (HOT DEAL) RENTED 2BEDS + LAUNDRY AREA SQFT:1578 UNOBSTRUCTED VIEW OF BURJ KHALIFA & SEA HIGH FLOOR AED 2,450,000/EXECUTIVE TOWER J VACANT 3BEDS + MAID’S + LAUNDRY AREA SQ FT:2197 BUSINESS BAY & LAKE VIEW HIGH FLOOR AED 4,500,000/EXECUTIVE TOWER H VACANT 4BEDS + MAID’S AREA SQFT: 2866 SEA VIEW AED 4,500,000/EXECUTIVE TOWER L (HOT DEAL) RENTED 4BEDS + MAID’S AREA SQ FT:3450 SEA & LAKE VIEW MOST DEMANDING LAYOUT AED 4,750,000/PENTHOUSE IN EXECUTIVE TOWERS G + 1 (LEVEL) AREA SQFT: 6300 ALL BEDROOMS ENSUITE UPGRADED 4 BEDS + MAID’S + STORE PRIVATE SWIMMING POOL LAKE & SEA VIEW AED 10,000,000/-
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RERA # 203
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PALM JUMEIRAH
GEETU | Rera # 25209 | 0551126979 | 0553800897 | geetu@castlesplaza.com
MARINA RESIDENCE AED 20,000,000 net FROND B AED 14,000,000 net FROND L AED 13,500,000 net FROND C AED 14,600,000 net CANAL COVE
3 Bedroom + Maid’s | BUA 3800
MARINA RESIDENCE
| Vacant
AED 8,000,000 net AED 2,700,000 net
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AED 2,995,000/Qaiser (BRN 29276)
Sofiene (BRN 31373)
050 9191567
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MIRADOR LA COLECCION - TYPE 13
MIRADOR LA COLECCION - TYPE 14
5 BED, 5 BATH, 7,087 SQ.FT.
6 BED, 6 BATH, 5,230 SQ.FT.
4 BED+MAID, 4 BATH,
SEA VIEW,
FULL GOLF COURSE VIEW,
3,809 SQ.FT. BUA, 7,400 SQ.FT. PLOT,
A GUARANTEED INVESTMENT
FULLY UPGRADED
AED 38,000,000/-
056 1053655
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Johnny (BRN 31388)
AED 8,900,000/-
Johnny (BRN 31388)
AED 5,000,000/-
056 6967268
056 6967268
IT IZE N U TS ER LO P IG
B
DISTRICT 9F
3 BED+MAID, 5 BATH,
2 BED+MAID TOWNHOUSE,
2,138 SQ.FT.
2,540 SQ.FT.
AED 4,900,000/-
AED 4,500,000/-
2,992 SQ.FT. BUA, 3,100 SQ.FT. PLOT, PARK AND LAKE FACING
Zia Hasan (BRN 29236)
AED 2,550,000/-
050 2989796
Zia-ul-Isam (BRN 31367) 055 3095036
DOWNTOWN
ST U M EE S
T N EA IO T A C
R
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DUBAI MARINA
G
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DIFC
056 1053655
SEA VIEW
SKY GARDEN
MAG 218
BOULEVARD CENTRAL 2
2 BED, 3 BATH,
2 BED, 3 BATH, 1,558 SQ.FT.
1 BED+STUDY, 2 BATH,
1,752 SQ.FT.
PARTIAL SEA & MARINA VIEW,
1,448 SQ.FT.
ZABEEL VIEW
AED 2,500,000/RERA ORN # 303
Fahd (BRN 27522) 055 2519878
HIGH FLOOR
AED 2,400,000/-
N
H
MARINA RESIDENCE 2 - TYPE B
3 BED+MAID+STUDY, 5 BATH,
Dorothy (BRN 29200)
R
IT
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YANSOON POOL VIEW
O
C
W
JVT
LA
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TA
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G IN N S N U W ST VIE
PALM JUMEIRAH
SP
OLD TOWN
Dorothy (BRN 29200)
Kavita (BRN 31377) 055 4690532
Suite 1601, Boulevard Plaza Tower 1, Burj Khalifa District, Dubai
PARTIAL BURJ KHALIFA VIEW
AED 1,750,000/-
Yasmin (BRN 28107) 055 7962787
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ARABIAN RANCHES - MIRADOR
SP: AED 11,000,000/-
Type 12, 7 Bedrooms + study + maid’s, Plot: 18,600 sq.ft., BUA: 6,911 sq.ft., Opposite to pool & park on the cul de sac, upgrades done by arabtec, 8 bedrooms all ensuite upgraded 3 seperate kitchens drivers quarters and outside guest quaters / Gym, 80 ft luxury swimming pool, jacuzzi, majlis area with outisde entertainment, children Astro Turk play area, vacant on transfer
ARABIAN RANCHES - ALBARARI
SP: AED 14,000,000/-
6 bedrooms + study with En-Suite + maid’s Room Plot: 10,970 sq.ft., BUA: 12,701 sq.ft. 1 Basement, Garage Spaces 3 Style D9, Vacant
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ALBARARI
DUBAI MARINA WHARF
6 Bedrooms + Study with En-Suite 1 + Maid’s 1 Basement | Garage Spaces 3 | BUA 12,701 sq.ft. Plot 10,970 sq.ft. | Style D9 | Vacant
2 Bedrooms | BUA 1,493.83 Sea View | High Floor Sea and Marina view | Vacant
SP: AED 14,000,000 Oksana | BRN 11556 | Mob 050 42 52 031
SP: AED 2,000,000 Rajeev | BRN 24907 | Mob 050 81 06 767
MIRADOR
PRIME MEADOWS
7 Bedroom + Study + Maid’s | Plot 18,600 sq.ft. | BUA 6,911 sq.ft. | Opposite to Pool & Park On the Cul De Sac | Upgrades done by Arabtec | 8 Bedrooms all Ensuite Upgraded 3 Seperate Kitchens | Drivers Quarters and Outside Guest Quaters | Gym | 80 ft Luxury Swimming Pool | Jacuzzi | Majlis Area with Outisde Entertainment | Children Astro Turk Play area | Vacant on transfer | SP: AED 11,000,000/-
Oksana | BRN 11556 | 050 42 52 031
SPORTS CITY
Olympic Park | 1 BR | BUA 987 sq.ft. |Golf Course | Rented Royale Residence 1 | 2 BR Duplex | BUA 2,052 sq.ft. | Full Golf Course | Vacant Royale Residence 1 | 1 BR | BUA 1,040 sq.ft.| Swimming Pool | Vacant Royale Residence 1 | 2 BR | BUA 1,503 sq.ft. | Full Golf Course | Vacant Royale Residence 1 | 2 BR | BUA 1,502 sq.ft. | Golf Course | Community | vacant
Pavi | BRN 9821 |Mob 050 30 66 767
Type 14 | 4 Bedroom + Maid’s BUA 4,099 sq.ft. | Plot 5,813 sq.ft. Single Row | Rented till November 2014
SP: AED 6,099,000/Aman | BRN 6621 | Mob 050 46 99 519
THE GREENS
SP: AED 1,100,000/SP: AED1,650,00/SP: AED 832,000/SP: AED 1,352,700/SP: AED 1,201,536/-
2 Bedrooms | 2.5 Bathroom BUA 1,378 sq.ft. | Fully Furnished Full Canal View | Vacant
SP: AED 2,100,000 Aman | BRN 6621 | Mob 050 46 99 519
BULK DEALS AVAILABLE FOR OFF PLAN PROJECTS IN CULTURAL VILLAGE | JVC | JVT | SPORTS CITY More Details Call 050 62 55 710
GENERAL LISTINGS
For Sales & Rental Enquiries
04 306 9999 www.espace.ae
ORN: 936
Properties For Sale Green Community West
Victory Heights
Bungalow
Esmeralda - Type C1
AED 4,000,000 /4 Bedrooms Corner plot
BUA: 4,200 sqft Single row
AED 5,399,999 /Plot: 10,000 sqft Immaculate condition
Ross | 052 652 7326 | BRN. 28890
Jumeirah Golf Estates
Plot: 6,600 sqft Immaculate condition
Arabian Ranches Hattan - Type L2
AED 10,500,000 /BUA: 8,159 sqft Vacant possession
BUA: 4,313 sqft Single row
Shelley | 050 224 8311 | BRN. 30547
Sienna Lakes
5 Bedrooms Brand New
5 Bedrooms Park view
AED 12,999,995 /Plot: 9,120 sqft Lake & Golf course view
Jonathan | 056 163 9710 | BRN. 32198
6 Bedrooms Golf course view
BUA: 7,230 sqft Single row
Plot: 15,200 sqft Immaculate condition
Nick | 050 494 1068 | BRN. 26857
Properties For Rent Meadows 5
Type 9
Meadows 8
Type L1
The Lakes
Hattan L1
AED 375,000 /-
AED 575,000 /-
AED 590,000 /-
Kerri | 056 991 5184 | BRN. 32206
Tarek | 056 657 8004 | BRN. 31856
Ronald | 056 2049832 | BRN. 26894
Arabian Ranches
Hattan L2
Arabian Ranches
Arabian Ranches
Polo Homes - Type D
Polo Homes - Type D
AED 550,000 /-
AED 585,000 /-
AED 700,000 /-
Kerri | 056 991 5184 | BRN. 32206
Michael | 055 835 4568 | BRN. 31465
Andy | 056 791 6926 | BRN. 31358
WE ARE BACK IN MEADOWS TOWN CENTRE FROM 15TH JANUARY OPEN DAILY FROM 10AM - 10PM 7 DAYS A WEEK
Properties For Sale Jumeirah Islands
The Lakes
Oasis Garden Hall
Hattan E1
AED 8,599,950 /4 Bedrooms Lake view
BUA: 5,285 sqft Well maintained
AED 12,999,999 /Plot: 10,000 sqft Superb location
5 Bedrooms Upgraded
Roberto | 055 333 3724 | BRN. 29166
Meadows 7
Emirates Hills
E Sector
AED 10,500,000 /BUA: 6,500 sqft Cul de sac location
Plot: 8,188 sqft Gazebo & bbq area
Alastair | 055 106 6926 | BRN. 23169
Type L2
6 Bedrooms Lake view
BUA: 6,124 sqft Single row
AED 25,000,000 /Plot: 12,500 sqft Lake view
Mohamad | 050 903 4245 | BRN. 6240
5 Bedrooms Full lake view
BUA: 8,500 sqft Open plan layout
Plot: 15,000 sqft Heated/Chilled pool
Daniel | 050 253 0195 | BRN. 24503
Properties For Rent Palm Jumeirah
Furnished Garden Home
Palm Jumeirah
Kempinski Residence - Penthouse
Palm Jumeirah
Signature Villa
AED 500,000 /-
AED 700,000 /-
AED 935,000 /-
Michael | 055 835 4568 | BRN. 31465
Michael | 055 835 4568 | BRN. 31465
Ronald | 056 2049832 | BRN. 26894
Emirates Hills
E Sector
Emirates Hills
E Sector
Emirates Hills
H Sector
AED 820,000 /-
AED 840,000 /-
AED 1,000,000 /-
Ronald | 056 2049832 | BRN. 26894
Tarek | 056 657 8004 | BRN. 31856
Ronald | 056 2049832 | BRN. 26894
GENERAL LISTINGS
050 888 9510 admin@lacapitaledubai.com www.lacapitaledubai.com
15
%
Pr
em
iu m
SOLUTIONS BEYOND REAL ESTATE
DUBAI MARINA Marina Diamond 2 | Studio + Balcony 432 sq. ft. | Full Sheikh Zayed View
HILLS
AED 780,000
BLDG A1 | 3 BR | 1967 sq. ft. | Full golf course View
OP 2,681,888
Ref: 53733 Stans
Pa
yA
ED
18
9,6
50
No
w
Ref: 53666 Nick
JLT
GREENS
Brand New JLT Furnished Studio Hotel Apartments
Al Dhafra 3 | 1 BR + Balcony 761 sq. ft. | Community View
AED 758,600
Ref: 53696 Kunal
AED 1,100,000
Ref: 53576 Caroline
DOWNTOWN
JLT
GREENS
Address Dubai Mall Hotel | 1 BR + Balcony 773 sq. ft. | Address Downtown View
02 Tower | 1 BR + Balcony | Fully Furnished 809 sq. ft. | Lake View
The Views | 3 BR + Study 2048 sq. ft. | Partial Golf course & Pool View
AED 2,673,000
AED 1,080,000
AED 2,980,000
Ref: 53635 El Hadji
Ref: 53723 Stans
Ref: 53411 Sherilyn
EMAAR GOLD & DIAMOND PARK, BUILDING 3 (GROUND FLOOR) OFFICE 3007, DUBAI, UAE
FINANCE
AVAILABLE
@ 2.99% INTEREST RATE
FOR READY AND OFFPLAN PROPERTIES
Lo we st
0%
pri
ce
Pr
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em
3E
in
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Du
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+971 55 219 5937
DUBAI LAND Mudon | 4 BR + Maid | Type B 3786 sq. ft. | Single Row View
AED 3,100,000
Ref: 53719 Kunal
SPRINGS
Springs 5 | 3 BR + Study | Large Plot | Type 3E | 2300 sq. ft. | Back To Back View
AED 2,650,000
SPRINGS
SPRINGS
Springs 9 | 2 BR + Study | Type 4M 1650 sq. ft. | Road View
AED 1,799,000
Ref: 53648 Kunal
Bl
Pre
mi
ow
um
M
Mi
ar
ke
nu s (14
tP ric
%)
Ref: 53580 Stan Vivian
e
Springs 10 | 2 BR + Study 1700 sq. ft. | Type 4M
AED 1,750,000
Ref: 53687 Arpana
ARABIAN RANCHES
DUBAILAND
JVC
Mirador | 4 BR+ Maid outside | Type 16 3480 sq. ft. | Partial Golf Course
Mira Oasis | 3 BR + Maid | Phase 3 | Large Plot 2565 sq. ft. | Back To Back View
Westar Les Castelets | 4 BR + Maid, Upgraded 3700 sq. ft. | Community View
AED 4,900,000 Ref: 52694 Kunal
OP 2,079,888
AED 2,500,000
Ref: 53739 Nick
Ref: 53653 Arpana
BRN 12509, 25799, 25854, 25970, 27809, 28162, 28163, 29161, 30070,30010 & 30662
GENERAL LISTINGS
REACH OUT TO 66 MILLION PASSENGERS PER YEAR Published by
TEL: +971 4 34 67 660 | +971 4 33 86 724 md@addmedia.ae | Jatin@medialabpublishers.com
TEL: +971 (0)4 277 80 02
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WEBSITE: www.stockholmre.com
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We Specialise in the following Arabian Ranches Jumeirah Park Jumeirah Island The Greens Palm Jumeirah Emirates Living Jumeirah Lake Towers
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Downtown Old Town Dubai Marina Business Bay Dubai Land
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2014 (21 Sep - 23 Sep)
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