NEWS BRIEF 18 - Asteco Property Management

DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN

© Asteco Property Management, 2017 asteco.com | asteco.com/report_library IN THE MIDDLE EAST FOR OVER 30 YEARS

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

NEWS BRIEF 18 SUNDAY, 30 APRIL 2017


© Asteco Property Management, 2017 asteco.com | asteco.com/report_library

IN THE MIDDLE EAST FOR 30 YEARS

Page 2



REAL ESTATE NEWS UAE/ GCC

EMAAR HOSPITALITY GROUP UNVEILS SIX NEW HOTELS

VAT IN REAL ESTATE

ASK PW: DO YOU REPORT A BOUNCED CHEQUE TO THE POLICE?

SECOND-HOME BUYERS CAN TAKE A SAFE PLUNGE

THE TALL ORDER OF MANAGING SKYSCRAPERS

ESHRAQ CONFIRMS DH50M INVESTMENT IN TERRA REAL ESTATE

15 HOTELS WORTH $10 BILLION TO OPEN IN BAHRAIN

DUBAI

ON THE MARKET: DH59 MILLION VILLA WITH PALM JUMEIRAH’S LARGEST PRIVATE

POOL

FLAT PROFIT IN FIRST QUARTER FOR NAKHEEL

DUBAI DEVELOPER AZIZI PRESSES ON WITH OFF-PLAN PROPERTY LAUNCHES

REVEALED: THE MOST POPULAR RESIDENTIAL AREAS IN DUBAI

DUBAI’S HOTEL SPACE HAS GOT ROOM FOR ALL

DUBAI’S HOTEL APARTMENTS HIT THE CITY OUTSKIRTS

THE ROLE OF AN OWNERS’ ASSOCIATION IN DUBAI

DUBAI GETS TOUGHER ON FIRE SAFETY

WHAT IS ‘GRANTED LAND’?

FIND THE RIGHT LOCATION

EMICOOL’S IPO LIKELY TO TAKE PLACE THIS YEAR, SAYS UNION PROPERTIES

CHAIRMAN

UNION PROPERTIES’ INVESTORS SEEK CLARITY ON FUTURE DIRECTION

A 120,000 SQUARE FOOT PLOT PICKED UP AT MEYDAN



IN THE MIDDLE EAST FOR OVER 30

YEARS

Page 3



REAL ESTATE NEWS

ABU DHABI

NEW EMIRATI FREE TRADE ZONE FOR EUROPEAN MARKETS ANNOUNCED AT

HANNOVER MESSE

ABU DHABI LEADS LARGEST EVER DELEGATION TO ARABIAN TRAVEL MARKET TO

BOOST INBOUND TOURISM

AL QUDRA TO BUY AL RAYAN INVESTMENT IN DH1BN ALL-SHARE DEAL

NORTHERN EMIRATES

KEEPING RAK RELEVANT

RAK CONTINUES TO STRUGGLE WITH HOTEL ROOM UNDERSUPPLY

INTERNATIONAL

DUBAI WEEK IN CHINA HEADS TO SHENZHEN

RECOVERY IN PRIME LONDON PROPERTY EXPECTED TO OVERCOME ‘HARD BREXIT’

FEARS

ZANZIBAR MEGA-RESORT OFFERS EXPATS AN OPPORTUNITY

SNC LAVALIN RAISES MONEY FOR ATKINS BUYOUT

ORASCOM RETURNS TO PROFIT BUT EQUITY WEAKENS DUE TO CURRENCY SHIFTS

COOKIE-CUTTER OFFICES ARE SO YESTERDAY




YEARS

Page 4



ON THE MARKET: DH59 MILLION VILLA

WITH PALM JUMEIRAH’S LARGEST PRIVATE

POOL Thursday, April 27, 2017

Want to live a private life but still be in the heart of the action?

If you do, and you have Dh59 million to spare, there’s a villa on the market at Palm Jumeirah that would be ideal.

The Mediterranean-style property is located right at the tip of Frond K, which is one of the private VIP fronds on

the Palm. The villa is only one of four at the tip of the frond and, as a result, it offers spectacular, sweeping views

looking out to prime hotel and beach resorts.

This 7,000-square-foot home comes with five bedrooms and six bathrooms. It sits on a 20,500-sq-ft plot that

includes Palm Jumeirah’s biggest private pool – an Olympic-sized, infinity pool curving around the outside of the

villa. There is also an external Jacuzzi, a barbecue area and a majlis.

Inside, the villa has undergone a wide-ranging refurbishment, with a contemporary-style finish employed. A black-

and-white colour scheme has been adopted that provides a brightness to a property that already benefits from

plenty of natural right. The feature living room space is a bay offering a 270-degree view of the crescents beyond.

The brand new open kitchen with an island cooking facility also has light streaming in from one side of the room,

as does a neighbouring dining area. Marble has been used extensively for kitchen countertops and for most of

the floors running throughout the property. There’s also a pantry, a storage room, a laundry room, maid’s room

and a drivers’ room. Bedrooms upstairs have walk-in closets and four wardrobes.

Due to its location, you’re virtually guaranteed to be undisturbed by traffic, but if you want to create your own, the

villa comes with four parking spaces.

And if the tranquillity becomes too boring, an array of five-star resorts awaits on the Palm’s two crescents, while

simpler fare is available from shops, cafes and other new facilities along the Golden Mile.

Luxhabitat’s luxury sales director, Alexander von Sayn-Wittgenstein, tells Michael Fahy about the benefits of

seclusion:

What would you say the standout feature of this property is?

The fact that it is right at the end of Frond K – one of the VIP fronds on Palm Jumeirah, and is therefore extremely

private. Only a few villas are nearby so there is very little passing traffic. It also has an Olympic-sized swimming

pool that wraps around the entire house. The property has also recently undergone a two-year programme of

renovations. Everything has been replaced and with designer furnishings throughout.

Who would live in a house like this?

It would make a great family home, especially for people who want to make Dubai their new home, because of its

location. It has five bedrooms, and the fact that it is at the end of a cul-de-sac where kids can carelessly run

around and play at the beach gives a greater feeling of security.




YEARS

Page 5



What about the facilities nearby?

There are lots of hotels nearby with great beach clubs and sports facilities. The Atlantis and the Kempinski Hotel &

Residences Palm Jumeirah are perhaps the two closest, which offer lots of choice in terms of F&B. There’s even

the Aquaventure water park. In addition to these, the new W Hotel will open next year, adding seven more

restaurants and bars. The new Nakheel Mall is also under way and will bring a whole new lifestyle to Palm

Jumeirah once it is completed, making it a self-sustaining community.

Source: The National

Back to Index




YEARS

Page 6



DUBAI WEEK IN CHINA HEADS TO

SHENZHEN Wednesday, April 26, 2017

The third Dubai Week in China will be hosted in Shenzhen.

The three-day event, which is likely to take place in late October, will have a theme of "innovation and

entrepreneurial spirit", according to Hongbin Cong, the vice-chairman of international relations at organiser

Falcon & Associates.

Shenzhen is the third city to host Dubai Week in China, following earlier events in Beijing and Shanghai, and Mr

Cong said the location fits the innovation theme, as well as mirroring many of Dubai’s own characteristics.

The southern Chinese city bordering Hong Kong was a fishing town until 1980, when it was designated as one of

four special economic zones as part of reforms aimed at opening China’s economy.

It is now a city of almost 12 million people and is considered to be China’s technology hub. It is home to telecoms

giant Huawei, electric car maker BYD and the world’s biggest drone company, Da-Jiang Innovations Science and

Technology. It is also home to some of China’s biggest financial institutions, including Ping An Financial and China

Merchants’ Bank.

"Shenzhen is one of the most innovative cities in China," said Mr Cong. "Also, it’s a very young, dynamic city,

similar to Dubai. The local population counts for maybe less than 10 per cent – another similarity with Dubai."

Mr Cong said there were already strong links between Shenzhen companies and Dubai. Huawei has signed a

number of initial agreements to develop smart city initiatives with Dewa, the RTA and Dubai South, among others,

and provides lots of infrastructure equipment for du and Etisalat.

BYD has also held talks with Jebel Ali Free Zone Authority about potentially setting up a facility within its zone,

according to Mr Cong. BYD did not respond to a request for comment.

On top of this, the Shenzhen Foundation signed a strategic partnership last year with Dubai’s Museum of the

Future to collaborate on innovation in robotics and the Internet of Things.

"We think between Dubai and Shenzhen there is a very good match in terms of history, development focal points

and in terms of the vision set out by the two cities," Mr Cong said. "We believe that having Dubai Week in

Shenzhen will give a further push for cooperation between the two cities in the areas of technology, city planning,

financial cooperation and people-to-people exchange."

China has been Dubai’s biggest trading partner since 2014, with bilateral trade hitting US$45 billion in 2016 – 13

per cent of Dubai’s total non-oil trade.

Earlier this week, Dubai’s Department of Tourism and Commerce Marketing said that the number of Chinese

tourists increased by 64 per cent year-on-year in the first quarter of 2016 to 230,000. A waiver programme

granting Chinese tourists a visa on arrival into Dubai was introduced in September.


Back to Index




YEARS

Page 7



FLAT PROFIT IN FIRST QUARTER FOR

NAKHEEL Wednesday, April 26, 2017

Nakheel reported first-quarter profit of Dh1.48 billion, flat on a year earlier, as handovers slowed.

The Dubai government-owned property developer reported a profit of Dh1.47bn in the same period last year.

Nakheel said that it delivered 412 units to customers during the quarter, compared with 536 a year earlier.

The developer said that its profits were in line with company forecasts, and that its retail, hospitality and

residential leasing businesses continued to perform "solidly".

"We continue to execute our long-term business plan, in turn contributing positively to Dubai’s real estate sector,"

said the Nakheel chairman, Ali Rashid Lootah.

The developer did not provide figures for its turnover during the period or any detailed breakdown of how its

profit was achieved.

Nakheel said that it awarded construction contracts worth Dh5bn during the first quarter of the year, and was set

to award a further Dh4bn in the three months to the end of June.

The developer said that it currently has 4 million square feet of retail space in operation with another 13 million

sq ft under development, including Ibn Battuta Mall, Dragon Mart 1 and 2 and Golden Mile Galleria.

The developer began work in February on the second expansion of Dubai’s Ibn Battuta mall, comprising 279

apartments, a 16-screen cinema and 53,000 sq ft of retail space.

Nakheel earlier this week broke ground on a new Dh240m 375-room hotel at Ibn Battuta mall, which is expected

to be completed by 2019.

Two Nakheel hotels are currently in operation with 16 more under development. The company plans to double its

residential leasing portfolio to more than 37,000 units under ongoing expansion plans.


Back to Index




YEARS

Page 8



RECOVERY IN PRIME LONDON PROPERTY

EXPECTED TO OVERCOME ‘HARD BREXIT’

FEARS Tuesday, April 25, 2017

Despite fears of a "hard Brexit" and Theresa May’s decision to call a snap general election in the UK, property

experts predict that house prices for prime central London property will start to recover next year.

At the Middle East Real Estate Forum in Abu Dhabi yesterday, Cluttons said that after a dip of 3.5 per cent in 2016,

it expected average house prices in prime central London to fall by another 1.5 per cent this year before starting

to level out in 2018.

The property broker said that even in the event of a "hard Brexit" with the UK giving up all access to the single

market, it expects cumulative growth for the five years from 2017 to 2022 to stand at about 9 per cent.

"We’re expecting that because we’ve started the clock ticking on the two-year exit process, so hopefully by then

we’ll have some clarity on what post-Brexit Britain will look like and we think investors will be more confident and

will return to the market in greater numbers," Faisal Durrani, head of research at Cluttons, told delegates.

"People invest in London because it offers safety and security, it has a proven track record in delivering returns

and we do not expect that to change any time soon."

Sir Edward Lister, a former deputy mayor of London and chairman of the UK government’s Homes &

Communities Agency, said that there was demand for between 250,000 and 300,000 homes a year to be built in

the UK, while housebuilders were currently building between 95,000 and 170,000 each year.

"The run rate is far lower than the demand rate," he said. "Hence prices will continue to rise, hence housing will

remain one of the most difficult political issues in the UK. That’s why if you looked at the last general election it

was the No 1 political issue and, if you cut Brexit out and assume it all goes perfectly, housing will again be the No

1 political issue."

Last month the Royal Institution of Chartered Surveyors reported that house prices across the UK remained

stable in February but continued a year-long fall in London.

Overall, Britain’s housing market has been holding up stronger than expected since last June’s Brexit vote. But in

London the high-end market in particular has been under pressure from concerns about Brexit and higher

purchase taxes.


Back to Index




YEARS

Page 9



DUBAI DEVELOPER AZIZI PRESSES ON WITH

OFF-PLAN PROPERTY LAUNCHES Monday, April 24, 2017

Azizi Developments is pressing ahead with scores of new towers across Dubai despite the weak residential

property market.

The company’s chief executive, Farhad Azizi, told The National that he expects between Dh8 billion and Dh10bn

worth of new projects to get under way this year, including two-tower schemes at Dubai Studio City and Dubai

Sports City and, most notably, a major project at Meydan that he described as " bigger than all of our other things

put together".

The company bought more than 180 plots at the Meydan One between February and April this year, which it

subsequently amalgamated into 76 plots, intending to build a low or mid-rise apartment tower on each. The units

will mainly be studio, one, two and three-bedroom apartments, ranging in price from Dh500,000 to Dh2 million.

"Meydan is larger than we had planned originally," said Mr Azizi. "We wanted to do maybe 50 projects this year –

50 different buildings. Then we approached Meydan and we noticed that they have a good location, untapped,

close to Burj Khalifa, close to Sheikh Zayed Road. So we said ‘Let’s grab it.’"

The 76 plots will be developed over four phases, with contractors appointed to deliver the first two under

Dh1.7bn contracts signed this month.

"The others will be starting as well, however, they will start later. Then we will see how the demand is and how

things move," said Mr Azizi.

Recent studies published on the performance of Dubai’s residential market have indicated that sales and rents

are continuing to decline, largely as a result of economic uncertainty. Cluttons said in its Spring Market Outlook

that house prices remain 7.8 per cent lower than a year ago, and transaction volumes in the market for

completed homes is 18.4 per cent lower. There is, however, more interest in the affordable, off-plan sector in

which Azizi is operating, with the overall number of transactions increasing by 14 per cent year-on-year in the first

two months of the year.

Mr Azizi said his firm’s month-on-month sales have been stronger in each of the first three months of 2017. He

argues that most of this demand is generated by international buyers.

"To be honest, we thought it was going to be a year full of uncertainty. But we’ve felt that uncertainty globally is

actually helping this country.

"I personally think that the things that are happening in the [United] States will drive people away. A lot of people

who have no option – they will stay. But many that have options, they have the money, they will move to cities like

Dubai. They’d rather invest in a place where they will feel welcome."

Despite launching a series of developments before the 2008 financial crisis, the company only finished its first

Dubai project, Azizi Yasmine, in September last year. However, since then, the company has completed five

towers in Al Furjan and Mr Azizi said it expects to hand over seven more this year. Coupled with the completion of

its 90-apartment Royal Bay project at Palm Jumeirah in June, he said Azizi Developments will complete more than

1,000 apartments this year.




YEARS

Page 10



Masood Al Awar, the chief commercial officer of Dubai Properties, said his firm sold a number of properties when

exhibiting at the Dubai Property Show in Shanghai late last month.

He argued that Dubai’s population and job creation growth mean the outlook in the city is generally positive, but

by tapping markets such as China developers can generate more than enough demand to fill the growing supply

pipeline (A first-quarter Cavendish Maxwell survey said that 35,000 units are scheduled for completion between

now and the end of this year).

"If you focus only on the drop of a needle, you are oversupplied [with buyers]," Mr Al Awar said.


Back to Index




YEARS

Page 11



EMAAR HOSPITALITY GROUP UNVEILS SIX

NEW HOTELS Monday, April 24, 2017

Emaar Hospitality Group, the hospitality and leisure arm of Emaar Properties, unveiled six new hotels as part of

its regional and international expansion at Arabian Travel Market (ATM) in Dubai. The expansion will be across

Emaar’s three hotel brands, the premium Address hotel and resorts, the upscale Vida Hotels and Resorts and the

midscale Rove Hotels. An Address Dubai Creek Harbour Hotel and an Address Dubai Creek Harbour Residences

will be part of the 6 square kilometre development anchored by the planned world’s tallest tower, designed by

Santiago Calatrava. A joint venture with Aldar Properties includes a Vida Beach Reem Island Abu Dhabi and Vida

Residences Beach Reem Island, scheduled to open in 2019 or 2020. Internationally, Emaar has agreed to build a

new Address Marassi Beach Resort and Address Residences Marassi Beach Resort in Egypt. Emaar Hospitality also

announced the opening of its new Rove Trade Centre Hotel in the next few weeks.

"We are in a dynamic market with opportunities all around," said Olivier Harnisch, chief executive of Emaar

Hospitality. Average occupancy at its hotels is 85 per cent, above the rest of the market, said Mr Harnisch.

Emaar Hospitality currently operates 10 hotels and three serviced apartment properties with 26 projects in the

pipeline. While there has been a softening in revenue per available room (revpar) in Dubai, with some segments

falling 10 per cent in 2016, occupancy rates edged up 3.2 per cent to 79.7 per cent last year, according to STR.

"I don’t see a problem with over supply, its something I have been hearing about in Dubai for ten years," said Mr

Harnisch. "I think we will see some more mid-market offerings but our three Rove Hotels have been exceeding

our expectations and I think the demand will remain high. We have a booming airport, a strong [meetings and

events] sector, occupancy levels high and Expo 2020 getting ever nearer."


Back to Index




YEARS

Page 12



ZANZIBAR MEGA-RESORT OFFERS EXPATS

AN OPPORTUNITY Monday, April 24, 2017

Off the coast of Tanzania, a tropical island resort is set to change the face of the Zanzibar archipelago – and for

the first time expats will be able to buy a home there.

The development of the Zanzibar Amber Resort,a mega-project by Pennyroyal Gibraltar, will sustainably and

economically transform Zanzibar and its community at large, the developer said.

Zanzibar is a cluster of 51 tropical islands nestled in the Indian Ocean that was first used as a port of call for

African, Indian and Arabic.

For the first time in Zanzibar’s history, non-Tanzanian residents can buy residential property there. Supported by

a 99-year lease (and further extended by an optional 49 years) the residential opportunities will become available

from mid-2017. The development features 1,914 luxury villas of 3,4 and 5 bedrooms, all with swimming pools.

There are 3,440 luxury and penthouse apartments of 1,2,3 and 4 bedrooms and the resort features faith centres

including mosques and churches. A private airport and medical facilities are also to be built.

Zanzibar Amber Resort is set to change tourism in east Africa, Pennyroyal said.

"With the commissioning of this luxury tropical resort by Pennyroyal Gibraltar the premium hospitality offerings

and world-class facilities will benchmark luxury in Africa," the firm said.

Covering 1,520 hectares of prime Indian Ocean coastline the resort will encompass an variety of hospitality and

leisure facilities. There will be five international hotels including the Anantara, a Signature Ernie Els Design 18-hole

golf course – the first in east Africa, a deep water marina, aqua park, an underwater restaurant, an equestrian

centre and superyacht facilities.

Zanzibar Amber Resort will be the largest hospitality investment and resort in east Africa, expected to create more

than 1,500 jobs for locals, making it Zanzibar’s’ largest employer and taxpayer.

Zanzibar has a diverse history and was under Portuguese, Arabic and British control before its independence in

1963. Today, the panoramic paradise is one of the top tourist attractions in the Indian Ocean and was labelled

one of the World’s Heritage Sites in 2000.


Back to Index




YEARS

Page 13



REVEALED: THE MOST POPULAR

RESIDENTIAL AREAS IN DUBAI Tuesday, April 25, 2017

ServiceMarket, the UAE’s leading platform for moving and home services, recently released their bi-annual moving

trends report, outlining which neighbourhoods have had the highest influx of new residents in the first quarter of

2017.

ServiceMarket receives thousands of requests for moving quotes each month and tracks which neighbourhoods

people are moving from and to in order to monitor Dubai’s moving trends.

An assessment of thousands of residential moving requests within Dubai revealed a major shift in moving trends.

Many residents are opting to move to suburban areas instead of Dubai’s dense high-rise communities.

Data from the same time period last year (Q1 2016) showed that the inflow of residents into Dubai Marina and

Downtown contributed to almost a fifth (19%) of all moves within Dubai.

However, with an inflow of 13%, Dubailand emerged as the most popular destination this year, followed by Dubai

Marina/JBR, Downtown, Barsha Heights and Silicon Oasis.

What were the 5 most popular areas to move to in Q1 2017?

Dubailand moved to first place this year, with 13% of all move-in requests being to this area, followed by Dubai

Marina/JBR, Downtown, Barsha Heights and Silicon Oasis.

How does this compare to Q1 in 2016?

The 5 most popular areas to move to in 2016 were Dubai Marina, Downtown, Jumeirah Village, Sports and Motor

City, and Dubailand.




YEARS

Page 14



Why has Dubailand become so popular suddenly?

The 2017 results highlight a shift in housing trends from dense high-rise communities to more recently developed

areas such as Dubailand and Silicon Oasis.

Dubailand, a large area located just off Sheikh Mohammad Bin Zayed Road, moved from fifth place (5%) in the

first quarter of 2016, to first place in the first quarter of 2017. Dubailand is still under development but it seems to

be on the path to becoming one of Dubai’s most popular areas. The most common community to move to within

Dubailand is the Mira community, followed by Remraam, Mudon and The Villas.




YEARS

Page 15






YEARS

Page 16



There could be many reasons for this shift in housing trends, including more affordable rents compared to

established areas like Dubai Marina and Downtown, less traffic, and the emergence of new shopping malls,

schools and facilities in these suburban areas. Another explanation could be that there are a number of freehold

properties available for purchase in these areas for prices significantly lower than in areas such as Dubai Marina.

Other interesting insights from ServiceMarket’s Dubai moving trends analysis:

Over the past three years, Dubai Marina/JBR, Downtown, and Barsha Heights/The Greens have remained

consistently in the top 5 most popular areas.

Silicon Oasis is another suburban area which appears to be quickly gaining popularity, moving from 11th

place in Q1 2016 to 5th place in Q1 this year.

Around a third (30%) of people moved to another property within the same neighbourhood they were moving

out of.

More than 60% of the moving-in activity took place in just 10 Dubai areas.

ServiceMarket conducts this analysis bi-annually to better understand the moving trends in the city. If you are

looking for a trustworthy mover in Dubai, you can use ServiceMarket to read vetted reviews of licensed moving

companies in Dubai and get free quotes online from the best movers.

Source: Emirates Business 24/7

Back to Index




YEARS

Page 17



NEW EMIRATI FREE TRADE ZONE FOR

EUROPEAN MARKETS ANNOUNCED AT

HANNOVER MESSE Wednesday, April 26, 2017

Abu Dhabi Ports announced today that its Khalifa Port Free Trade Zone will open to European markets, revealing

details to an international audience during the sixth annual UAE Business and Investment Forum at Hannover

Messe.

Mana Mohammed Saeed Al Mulla, CEO of Khalifa Industrial Zone, KIZAD, noted that the new free trade zone,

which boosted the total size of KIZAD free trade space to more than 100 million square metres, has received 130

international and local investors since opening in 2016.

The Business and Investment Forum is a key annual event for raising awareness about foreign direct investment

opportunities available to international stakeholders and conducting business-to-business and business-to-

government meetings.

Across keynote speeches and three panel discussions, high-level officials and representatives from leading Emirati

manufacturers and industry organisations discussed the country’s transition to a post-oil economy, innovation

and technological applications throughout the UAE, and the national readiness for international investments.

In particular, government officials highlighted the vital role of SMEs to the UAE, describing them as the

"backbone" of the economy, as well as noting the strength of German-Emirati trade relations and ongoing direct

investments.

Speaking to an audience of international stakeholders and investors, Abdullah Al Saleh, Undersecretary of the

Ministry of Economy, said, "Collectively, small- and medium-sized enterprises form the backbone of our national

economy. SMEs account for over 60 per cent of the UAE’s GDP, so we are committed to facilitating their sustained

and comprehensive growth – especially those that are directly involved in industrial production."

Also introducing the event was Ali Majed Al Mansouri, Chairman of the Department of Economic Development-

Abu Dhabi, who spoke of the Emirate’s focus on the Fourth Industrial Revolution, 4IR. "This year, we have chosen

to highlight the UAE’s contribution to the Fourth Industrial Revolution. It is our aim to drive this revolution and

lead the efforts to advance these strategic initiatives into a global movement. Last year, the UAE launched a six-

pronged operational programme, representing the first national policy to adopt technologies in support of 4IR," Al

Mansouri said.

Ali Abdullah Al Ahmed, the UAE Ambassador to Germany, spoke of the strong business and financial relations

between the two countries. Al Ahmed noted that the UAE is Germany’s largest trade partner in the Middle East

and North Africa region with bilateral trade that amounted to 15.52 billion Euros in 2015, which is equivalent to 30

per cent of the total trade with the region.


Back to Index




YEARS

Page 18



ABU DHABI LEADS LARGEST EVER

DELEGATION TO ARABIAN TRAVEL MARKET

TO BOOST INBOUND TOURISM Sunday, April 23, 2017

Abu Dhabi Tourism and Culture Authority (TCA Abu Dhabi) is leading its largest ever delegation to the Arabian

Travel Market (ATM) later this month to capitalise and increase on the record numbers of guest arrivals into the

emirate.

The authority will be joined by 67 stakeholders representing 115 products at the region’s largest travel and

tourism fair, which is being held in Dubai between 24th and 27th April.

The emirate’s leading hotels, destination management companies, tour operators and attractions will be

represented at the Dubai World Trade Centre, where more than 30,000 delegates will network, negotiate and

discover the latest industry opinions and trends.

More than 4.4 million guest arrivals were recorded in Abu Dhabi during 2016, which set a new annual record, with

an increase of 8 percent over the previous year. This year the authority has set a target to welcome 4.9 million

guests into the emirate, which is a year-on-year rise of 10 percent, and it has already registered impressive guest

arrival figures during the first two months of this year.

During January and February, there was an increase of 5.5 percent in guest arrivals over the corresponding period

in 2016, with 749,650 guest arrivals registered an increase of 40,000 over the same two months in 2016.

"Abu Dhabi’s popularity is increasing each year and our impressive guest arrivals numbers demonstrate the

emirate’s growing international appeal as a value-for-money destination. We are targeting a 10 per cent increase

in the number of guest arrivals this year by focussing on six markets offering the best growth potential the United

Kingdom, Germany, India, China, United States and the GCC region," said Saif Saeed Ghobash, Director-General,

TCA Abu Dhabi.

"We have registered strong figures this year, which is encouraging, and we expect to further reap the benefits of

our global destination campaign aimed at encouraging travellers to experience Abu Dhabi’s extraordinary stories.

ATM along with other prestigious international travel shows such as ITB Berlin and WTM in London enable us to

position Abu Dhabi as a distinctive global destination built on unique experiences and rich cultural heritage," he

noted.

Joining the delegation at the Abu Dhabi pavilion for the first time this year will be Abu Dhabi Airports Company,

Abu Dhabi Health Authority, TDIC, Cleveland Clinic, Department for Economic Development, Tourism Police and

the General Directorate of Residence and Foreign Affairs. The pavilion will be split across Abu Dhabi’s three

distinct regions – Al Dhafra, Al Ain and Abu Dhabi city.

Also present will be Louvre Abu Dhabi, due to open later this year, Abu Dhabi Convention Bureau, Qasr Al

Muwaiji, Al Ain Oasis, Cruise Abu Dhabi and Wahat Al Karama. TCA Abu Dhabi’s overseas offices from the UK,

India and Commonwealth of Independent States will also be participating for the first time.




YEARS

Page 19



The emirate’s expanding portfolio of attractions, experiences and events will be highlighted, including Al Ain

Oasis, the UAE’s first curated UNESCO World Heritage site visitor experience, and the newly opened 175-room

Aloft Al Ain hotel attached to the iconic 25,000-seat Hazza Bin Zayed Stadium.

TCA Abu Dhabi will also reveal details of its year-round calendar of events and festivals.


Back to Index




YEARS

Page 20



DUBAI’S HOTEL SPACE HAS GOT ROOM FOR

ALL Wednesday, April 26, 2017

A surge in Airbnb-driven short-term bookings eating into Dubai’s hotel industry margins? Not likely as there is

enough space to accommodate all of the demand — and not necessarily competing — from the various guest

categories, according to findings by the consultancy PwC.

“It’s the Generation Z that is so taken up with a “shared economy”,” said Martin Berlin, Middle East Partner and

Global Deals Real Estate Leader at PwC. “This is the audience that will find a stay with an Airbnb app most

appealing; but this is effectively creating a user base in cities where they didn’t exist before or wasn’t fully

developed.”

PwC has issued its Megatrends report on the hospitality sector, where it defines the user groups the hospitality

industry should be planning for — the “silver generation”, the millennials and Generation Z. And each group has

their marked preferences on where they want to make a room booking and how they want to make it. (Until now,

the millennials and the Genz Z (born after 2000) were clubbed together under the impression that their tastes

bore close resemblances and with little differentiation.) But the PwC report prefers to see some subtle differences

between them. “Although there is limited knowledge about the travel preferences of the Gen Z tourist, it is

predicted that due to higher access to information and higher education levels, this travel segment will bring forth

a new age of innovation within the travel and tourism industry,” the report states. While Gen Z would prefer non-

traditional hotel concepts such as Airbnb, the millennials — more so those further up on their career paths — are

“partial to smaller boutique brands and shared economy structures such as Airbnb”.

But the region’s hotel industry will still have a fight when it comes to retaining their hold on the business traveller.

There are options opening up via short to longer term staying options offered by non-hotels for a corporate

guest.

Cookie-cutter brands

The PwC report reckons as much. “The hotel industry’s prized possession — the business traveller — is soon to be

targeted by Airbnb,” it states. “Hoteliers need to take strong proactive action to retain business travellers and

attract customers across all ages and demographics.

“This would require adapting their services to become more consumer-centric in order to create unique guest

experiences. Hoteliers also need to invest in creating strong identities for smaller lifestyle chains rather than

larger cookie-cutter brands. It is important for the hotel industry to be proactive rather than reactive when it

comes to locking horns with this disrupter.”

Dubai’s developers are changing tack, with a horses-for-courses policy rather than keep committing to hotels

either too heavy with luxury trappings or a bare-bones budget option. Damac has now introduced investment

options on hotel apartments overlooking its Trump golf course, with prices starting from Dh395,000. Meraas, the

Dubai Government owned master-developer introduced four concepts in one go as part of its drive into

developing a hospitality presence.

Growth opportunities




YEARS

Page 21



According to Berlin, “Dubai will still be a top attraction for the “silver” tourist, and with their preference for longer

term stay options. The laws on short-stay homes have already been passed in Dubai and it’s just a matter of time

before other Gulf cities come with their own versions to govern this category. It will only mean further growth

opportunities.”

Even on how marketing campaigns should approach them, Gen Z are overtly dependent on connectivity while

millennials want to know more — and are not immune to influence by — social media.

For Middle East hoteliers, there are lessons on marketing tactics they will need to imbibe. “The shift from the

intermediaries to the influencers is one of the largest marketing shifts the travel and tourism industry has

foreseen,” the report notes. “The Gen Z and the millennial tourists are no longer swayed by travel brochures but

are most likely to make decisions based on social media influence. Therefore, it is imperative for players in the

travel and tourism industry to increase the importance of social media platforms in their marketing strategies.”

Source: Gulf News

Back to Index




YEARS

Page 22



DUBAI’S HOTEL APARTMENTS HIT THE CITY

OUTSKIRTS

Wednesday, April 26, 2017

Dubai’s real estate market has always been partial to hotel/serviced apartments. Any well-established cluster

within key central points of the city has had developers targeting investors with such offerings. Now, the

momentum is taking developers to locations further out.

“We have found that the rental market is very strong in certain newly growing areas on the outskirts, such as

Dubai Sports City, Jumeirah Village Circle, etc with rental yields at 9-10 per cent,” said Samir Salya, Chairman of

Reign Holdings, which operates the Arthur & Hardman brand for its residential offerings. “This in effect is more

attractive than having rental from any blue-chip property or residential in Europe.

“We believe in our product, which is a boutique hotel. Our prices have been the same in 2014 as today.”

“We have had a land bank since 2013, and will only target mid-tier in the freehold cluster for the moment. There’s

huge scope in this area. We have higher returns from all our projects.”

The pipeline for hotel/serviced apartments is only going to get longer, with newer locations such as Dubai South,

Creek Harbour and MBR (Mohammad Bin Rashid) City also set to attract developer interest. Now that Dubai has

clarified its short-term stay regulations, it could get investors to seriously evaluate their interest in “holiday

homes”. New players such as Bueground, which picks up properties in select residential towers for the corporate

traveller, has also broadened the scope for this type of property.

Reign Holdings itself is part of a regional fund syndicate, said to be valued at Dh1 billion. “We have no intention of

raising any capital from institutional investors,” said Salya. “At some point in the future, our systems and process

in place will allow us to float the group and keep a major share in the business. That will most likely work as our

exit strategy.”

It has 10 projects in the pipeline in Dubai and has handed over 400 furnished units (Roma by Giovanni Boutique

Suites in Dubai Sport City). Another 124 Italian-style luxury units (Milano by Giovanni Boutique Suites, are in

construction in Jumeirah Village Circle and will be completed in June 2018. The plan is to launch another

development there — the Naples with 167 units in August.

But aren’t there too many off-plan launches happening in Dubai right now? And that too with a significant gap still

existing between supply and demand.

“We have seen that there are many projects in the market as off-plan … but our sales have been pretty smooth,”

said Salya. “In my opinion, the pricing doesn’t really vary. We have always based the price at between Dh1,100 and

Dh1,500 a square foot. We have been able to achieve these in the past and in the present.”

Source: Gulf News

Back to Index




YEARS

Page 23



VAT IN REAL ESTATE Wednesday, April 26, 2017

As the 5 per cent GGC-wide value-added tax (VAT) comes into force in the UAE next year, its impact on residential

property transactions is likely to be minimal, although commercial real estate transactions may attract VAT.

“We don’t expect VAT to be raised on sales of properties. The DLD’s transfer fee is already a kind of tax, a bit like

the stamp duty in the UK,” says Mario Volpi, chief sales officer of Kensington Exclusive Properties, referring to an

amount equivalent to 4 per cent of the property value already being collected by the Dubai Land Department

(DLD) for each real estate transaction.

Furthermore, a guide on VAT for property transactions is not yet available, notes lawyers from Hadef & Partners.

The UAE VAT Law could be issued by mid this year, with further regulations later in the year, according to Ashraf

Sayed and Michael Lunjevich, who are partners at the law firm.

While investors are now weighing the impact of a new tax regime, industry insiders are hopeful the VAT will not

affect property demand negatively. “It might hurt the already depressed market,” says Sailesh Jatania, CEO of

Gemini Property Developers. “Although full details about the VAT implementation are still being awaited, we do

not think that property sales and rental would attract VAT, as it is generally not applied on immovable asset sales.”

VAT exempt

Residential property transactions, whether lease or sale, are known to be exempt from VAT, according to Hadef &

Partners. “In some jurisdictions, the first sale of residential property is usually exempt or is ‘zero rated’ with

subsequent sales being ‘exempt supply’ for the purpose of VAT,” according to Sayed and Lunjevich.

“It is anticipated the UAE will adopt a similar approach as the real estate sector forms a major part of the UAE

economy, and this may avoid any negative impact generally.”

Zero-rated goods are items that are VAT taxable, but the actual tax charged is zero. For property, developers

would still have to report the sale on their VAT returns.

“It would appear that VAT on residential is completely waived, although there is no guarantee, as the regulations

haven’t yet been published,” says Andrew Thomson, partner at law firm Gowling WLG. “But for now they are

saying zero-rated for off-plan and exempt for secondary sales, and residential rents are also protected or VAT

exempt.”

He adds: “The reason, I guess, that they are not attaching VAT to off-plan is because they could potentially

damage developers and the market on the residential side.”

Property services

Residential rents and sales may be exempt from VAT, however, this does not mean that property owners, tenants,

buyers and sellers won’t come across it. Services provided by maintenance companies, real estate agencies and

even law firms will be most certainly affected.

“Any service related to real estate should attract VAT, so your maintenance fees may go up,” Thomson cautions.

“Those of us operating in the real estate business just have to rethink the way we approach property transactions

and services with VAT. Do we cut our rates by five per cent to make up for the difference? It is going to be a

learning curve.”




YEARS

Page 24



Anyone using a brokerage to buy, sell, rent, lease out or manage a property will see the VAT on their bills.

“VAT is likely to apply to the services provided by agencies selling property,” Volpi says.

On the agency side, this could raise issues in terms of commission sharing, as the brokerage would bear the VAT,

while it would still pay the full commission to agents, according to Hadef & Partners.

But Ala’a Masoud, head of marketing at Schon Properties, says it may be too early to bring brokerage commission

into the VAT system.

“It might, if at all, be in future tax reforms,” says Masoud, who is also not convinced that real estate would attract

any form of VAT for now. “At the moment, we are not sure if property will come under the VAT scheme as most

GCC states might not be ready to bring real estate under the VAT regime. Also, there is no such indication from

the authorities.

“In Dubai, there is already a four per cent fee on purchase transaction. People are paying five per cent on rental

fees already. Any new tax on property will hurt developers and buyers.”

VAT magnet

Nonetheless, as Sayed and Lunjevich point out, the general consensus is that commercial property is more than

likely to attract VAT, in addition to existing DLD transfer fees.

“Commercial leases, offices and probably hospitality units wouldn’t escape VAT, opening up the possibility for

landlords seeking to pass VAT onto their tenants, resulting in an increase in rent,” the Hadef lawyers say, adding

that developers could resort to fitting out a property, which is traditionally done by tenants, to make their

offerings more commercially competitive.

Thomson also believes commercial rents would be affected by VAT, just like in Europe. “We imagine it will be five

per cent on top of rents of warehouses, offices, retail, etc, and potentially could affect sales of commercial

property as well,” says Thomson, adding that it is best for potential buyers and sellers to seek legal advice. “It will

take some time to get used to VAT. For us lawyers, the introduction is not that surprising, but it does mean that

people doing commercial deals would ideally have to involve lawyers to get contracts right. That’s going to be the

biggest change from our perspective, as not everyone these days uses lawyers for property transactions.”

A sign of sophistication

Thomson says buyers can potentially offset VAT, but it will “require everyone to think more sophisticated and

professional. It will make the region and the UAE a more mature, modern, developed economy, rather than rely

on oil and fees, which isn’t sustainable in the long term”.

Ultimately, he believes VAT will not seriously affect real estate. “Most countries charge much higher fees for

property registration, etc. The VAT is not going to hurt the market.”

Jatania concurs the VAT is a natural progression in the GCC’s economic development. “For businesses, it will be

crucial to adjust to the new mentality, although VAT will start from a low base, so it will not hurt consumers

much.”

Real estate development

The construction industry, with myriads of materials and services involved, would attract VAT. In addition, Hadef &

Partners points out that VAT may not be equally applied to sales of undeveloped property, developed commercial

property and residential property, with bare land often being exempt, and mixed-use developments requiring

more complex VAT management.




YEARS

Page 25



“It is possible that VAT recovery for residential development is likely to be blocked, as are business inputs into the

leasing of residential property,” says Lunjevich. “Where the sale or lease of residential property is exempt for VAT,

it could hit the pocket of the landlord or developer.”

Who will be affected?

Here’s how the value-added tax (VAT) will play out in the real estate sector, according to industry pundits:

Residential property transactions, including rents and sales, may not be affected.

Services provided by property maintenance companies, real estate agencies and law firms will be affected.

Sales and lease of commercial property are likely to attract VAT, in addition to existing fees.

Although residential assets could be exempted, prices could still increase as the cost of materials and services

related to real estate construction won’t be exempted.

Source: Gulf News

Back to Index




YEARS

Page 26



ASK PW: DO YOU REPORT A BOUNCED

CHEQUE TO THE POLICE? Wednesday, April 26, 2017

My tenant’s second cheque has bounced. I want to report it to the police, but have been advised not to. What’s

the best thing that I can do?

In general the first thing would be to speak to the tenant or find out if there was another reason the cheque was

returned. Sometimes it is merely a slight difference in signature and this is at the discretion of the employee of

the bank. Cheque returns are common and can cause confusion, especially when the cheque is referred to as

‘bounced’. If the bank and the tenant are of no help, then you have little option but to report the matter to the

police and then eventually to the Real Estate Regulatory Agency (Rera) should the non-payment continue to force

an eviction from your property. Usually, these issues are nipped in the bud very quickly through dialogue, but

make sure you get everything in writing where possible.

Our Dubai Electricity and Water Authority (Dewa) bills have been extremely high and have not come down after

the end of summer. We think there is a leak, what can we do?

Firstly, contact Dewa to check your meter, although there is a Dh30 call-out fee for this. If there is a fault Dewa will

help rectify it. If not, then you will need to call a maintenance company to investigate a leak and how it can be

fixed. Depending on the amount, this cost may fall on the landlord or the tenant.

How do I increase the rent for my tenants? I would like to do it mid-contract as I think they are underpaying by a

large margin.

You can only increase the rent at the end of the tenancy contract. Unfortunately, if they are underpaying as

opposed to what you think the amount should be, you need to wait until the contract is renewed. The way to

increase the rent legally is to first inform your tenants of the increase 90 days before the contract expires. The

increase has to be in line with the Rera rent calculator and as such won’t be unlimited. Depending on the

undervaluation, you may be able to increase the rent for the following year by a maximum of 20 per cent.

I need to repaint my apartment before handover, how do I find out what paint colour is used?

We would advise asking both the building management and the landlord. Both of them should be able to provide

you with the information. Sometimes, the building management will ask for this request to come through the

landlord, so you may need to liaise with a few people to get the required information.

What is the maximum length of time I can stay in my apartment once my contract has expired?

In Dubai, all tenancy contracts are considered rolling, assuming no eviction notice has been sent. If you intend to

either stay or leave, you will need to have informed your landlord or your real estate agent. If you have not heard

from either, we would suggest trying to get in touch. If there is still no response then you could go down to Rera

and deposit your rent cheques with them and obtain a letter stating the circumstances for Ejari and visa

processes if needed. In theory, the law states this discussion should have happened 90 days before expiry of the

tenancy contract, but this does not always happen.

My real estate agent has given me a contract in two parts: a standard 10-point document and an addendum. Is

this normal?




YEARS

Page 27



Yes, they are usually both on the same contract. The addendum covers the parts of the contract that are not

covered under Dubai law. Often, this may mention repainting, fees due or the tenant’s obligation to the property.

Remember, if you sign it, you are bound by it, unless it tries to supersede Dubai law. If it does, the law of Dubai

will always prevail over a contract.

The writer

Toby Young is the founding managing director of propertyrights.ae. The views expressed here are his own.

Source: Gulf News

Back to Index




YEARS

Page 28



KEEPING RAK RELEVANT Wednesday, April 26, 2017

While everyone else was trying to stay afloat amid a tough market, RAK Properties, Ras Al Khaimah’s largest

property developer, was on a roll. The company’s revenue was in excess of Dh390 million last year, a growth of

5.98 per cent from the previous year. This coincided with new milestones in the company’s flagship development,

Mina Al Arab, including the handover of the second phase of Flamingo Villas in October, two months ahead of

schedule, and the announcement of a new Dh5 billion mixed-use development.

It was therefore no surprise that the man who steered the growth of the company was named one of the GCC’s

most powerful business personalities. At the recent CEO Awards 2017 in King Abdullah Economic City, Saudi

Arabia, Mohammad Sultan Al Qadi, managing director and CEO of RAK Properties, was named one of the GCC’s

top CEOs for the second year running.

The awards, organised by Trends magazine in conjunction with Insead business school, honours business heads

and CEOs of firms listed on the stock exchanges of Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait and Oman.

With RAK Properties on course to maintain its momentum this year, Al Qadi talks to PW about the factors driving

the company’s sustained growth and the real estate potential of the northern emirate.

What are the key factors for the company’s strong performance?

The results are a clear indication of the company’s strong position in the market. Despite the downturn

experienced across the industry, demand is still there and reputable developers such as RAK Properties have

established trust with local, regional and international buyers and investors.

We have established ourselves as a trusted partner for homes and commercial space, offering key developments

across the UAE, and this remains a key foundation for our success.

Supporting our projects, we have a strong marketing strategy that reaffirms our position and showcases current

and new developments on a global platform and in various international property shows.

Tell us about your recently launched projects.

Julphar Residence, which is a 24-floor residential tower in Abu Dhabi, will be completed in the fourth quarter of

2018. It has a prime central location within the vibrant Al Reem Island community. All design elements of the

project combine comfort with practicality, to maximise the use of space, natural light and offer warmth through

the materials used and its colour scheme.

The property will feature 266 apartments, which range from chic and smartly laid out studios to spacious three-

bedroom units. In addition, communal living is a key element with a rooftop garden, swimming pools and gyms

for all residents.

Mina Al Arab is a landmark development for RAK Properties designed to be a new social and entertainment hub

of Ras Al Khaimah. Being developed with an investment of Dh5 billion, the 811,420 m² island will feature a five-

star resort, a four-star lifestyle resort, serviced apartments, a shopping mall, beach and waterfront apartments,

villas and town houses with a private beach clubhouse. Along the beach there will be al fresco dining and

entertainment venues.

What is the status of your other ongoing projects in Ras Al Khaimah and what sort of investment opportunities do

they offer?




YEARS

Page 29



RAK Properties has a number of ongoing projects at various stages of development and we continue to look at

areas of interest that present an investment opportunity for the business.

We have handed over the second phase of the 192-unit Flamingo Villas community, part of Mina Al Arab. We’ve

released the new phase of Bermuda Villas, a further development within Mina Al Arab. The community has two-

to six-bedroom villas and town houses, which have been designed to optimise their extraordinary beachfront

setting. We have introduced a very attractive payment plan with investors only needing to pay 10 per cent as

down payment. During handover, a further 15 per cent is to be paid, with the remaining being structured over a

five-year period.

Ras Al Khaimah is one of the fastest-growing destinations in the region and investment opportunities present a

lucrative return for those looking to purchase property. The emirate represents an affordable proposition for

prospective buyers. Not only are prices significantly lower than those in Dubai, the quality of life is unparalleled

given the space and natural attributes that are found throughout the emirate, rather than just in select pockets.

With the slow market, do you expect a good number of buyers or investors for your new inventories in Abu Dhabi

and RAK?

The previous year presented a strong performance for RAK Properties. The demand is still there and we are

receiving interest in all of our developments on a regular basis across our source markets, however, we are aware

that we need to diversify and further expand our reach.

As part of our strategy, we attended the International Real Estate Expo (Irex) in New Delhi, India, in October. India

has long been a key investor market for RAK Properties and in recent years we have recorded significant growth

in sales from Indian buyers living inside and outside the UAE.

What is your general assessment of the Ras Al Khaimah market?

Mina Al Arab remains to be of particular interest for international investors, confirming the solid opportunity in

Ras Al Khaimah. The emirate and its various developments present an alternative lifestyle that is appealing for

residents and a safe, solid investment proposition for investors.

We attend a number of international property shows, such as Irex, as part of our global marketing efforts to

showcase our various developments and we continue to receive tremendous feedback. Mina Al Arab

encompasses a number of individual projects, which we have handed over to owners in phases. This will be the

same with the new development, which consists of various components. For example, the planned five-star hotel

is scheduled to open next year.

What are the driving factors for real estate growth in the northern emirate?

Currently, there is demand for high-end beach property in RAK. RAK Properties has adapted to this demand and is

developing a number of propositions, such as Bermuda Villas and Flamingo Villas — each ensuring we stay

relevant to the market demand.

There has been considerable investment across the UAE in terms of infrastructure, which aims to further connect

destinations across the country. Last year the Emirates Road was extended to Ras Al Khaimah, adding a further

convenience for those travelling to and from the northern emirate.

Additionally, there are more than 100km of federal roads being constructed. As part of this considerable

investment, Ras Al Khaimah will benefit from a ring road, which aims to further connect the northern emirate with

the east and south.




YEARS

Page 30



Ras Al Khaimah already benefits from being within close to other emirates. For example, it is only a 45-minute

drive to Dubai International Airport. Such infrastructure projects further enhance the affordable appeal of living in

Ras Al Khaimah, by increasing accessibility, especially for those looking to commute to work, while enjoying a

more relaxed lifestyle that the emirate offers.

Last year was a landmark year of expansion for Ras Al Khaimah International Airport, which has welcomed a

number of new routes and airlines. Together with the expansion of Air Arabia’s routes from the airport, Qatar

Airways began flying four services per week from its hub in Doha. In addition, a number of chartered flights from

Eastern Europe are expanding into the emirate’s aviation terminal, including one from Poland that was launched

by TUI and operated by Enter Air.

These additions not only support Ras Al Khaimah’s target of attracting one million visitors by the end of 2018, but

also create further opportunities for residents to travel to see friends or family on a wider network of

destinations.

Source: Gulf News

Back to Index




YEARS

Page 31



SECOND-HOME BUYERS CAN TAKE A SAFE

PLUNGE Wednesday, April 26, 2017

If you have been toying with the idea of buying a second home, but hesitating at the lack of enthusiasm in the

market, it is time to think differently. Depending on your earning potential and ability to handle financing, this

may be a good time to take a second plunge.

The dirham’s peg to the US dollar along with low oil prices had curtailed investments from overseas investors,

especially from Europe, China, Russia and the GCC. In addition, government cost-cutting and regional instability

have had a trickle-down effect on the regional housing market. However, there are various signs of improvement

in the Dubai housing market. Overall, real estate transactions in Dubai have jumped to Dh77 billion, representing

about 20,000 real estate transactions in the first quarter, a 45 per cent increase in value compared with the first

quarter last year. Trends also show that a number of home transactions in Dubai have become more affordable

in the past year and hence home financing activity has recorded an overall increase.

Second home

Property deals involving financing are less volatile than cash transactions. This signals maturity of the sector and

weeds out speculators. In this more stabilised market, it may be advisable for investors to consider buying a

second property.

If you have enough financial buffer and no real desperation for a living space, it would be wise to book a second

home and get a good return on investment. Along with audacious investors who want to build a portfolio of

multiple properties for capital gains, there is also a niche section of end users who buy second homes to rent out

or sell within a short time when prices rise.

Choose carefully

Investors, though, should not take unnecessary risks; they should choose their properties carefully and diligently

calculate returns on their investment. It is better to go for smaller homes in established localities, which are

served by schools, hospitals and public transport.

Look for ready-to-occupy apartments that are well connected to business districts and can attract a salaried

population keen on renting. This way, an investor is assured of guaranteed returns within a four- to five-year

holding period. If such properties are unaffordable, investors can check out areas that promise to turn into prime

localities in future, with good transportation plans in the pipeline.

Rental yield

Remember, rents in Dubai will always stay relatively resilient as a large number of expat families or middle-

income households may not be able to afford their own homes, but need somewhere convenient to live in.

In fact, investors now have a greater choice of properties to select from. Newer, mid-income areas such as

Jumeirah Village Circle and International Media Production Zone have opened up a variety of options.

Home finance




YEARS

Page 32



Access to financing is now one of the key elements to keep in mind when operating in the real estate market,

whether you are a first-time buyer or an experienced one. Some regulations can be confusing, which is why

investors should seek advice from their banks or do online research on property sites that list the provisions of

Dubai’s mortgage or home finance laws.

Rate regime

In October 2013 the UAE Central Bank issued new regulations on home financing to banks and other financial

institutions. UAE customers can opt for a second home finance but with a reduced finance-to-value (FTV) of 65 per

cent for UAE nationals and 60 per cent for expatriates. This FTV requirement is the same for those applying for

Islamic financing and basically applies across multiple financial institutions. Except for a higher down payment,

the terms and conditions for a second home finance remain the same.

If the existing property is financed, the bank will scrutinise the payment history to ascertain a customer’s fiscal

discipline. Banks also have the discretion to initiate marginal cuts on FTVs and allow risk-based pricing differences

for first and consecutive financing. Therefore, you should always ask for options. Interestingly, customers can also

apply for a second home finance even before their first home finance tenure ends.

Off-plan option

Given some of the challenging market conditions these days, potential investors tend to restrict their budgets and

avoid risks. Middle-income households, earning between Dh10,000 and Dh30,000 per month, have few options

when it comes to buying completed homes. This is why many first and second home buyers are once again

turning to the off-plan market, which is much more affordable than completed properties and can deliver a high

profit margin upon completion.

A second home can be a very sound investment decision, but you must have total confidence in your ability to

take this risk.

The writer

Pawan Dhawan is the Head of Home Finance, Noor Bank. The views expressed here are his own.

Source: Gulf News

Back to Index




YEARS

Page 33



THE ROLE OF AN OWNERS’ ASSOCIATION IN

DUBAI Wednesday, April 26, 2017

A room filled with chairs, a whiteboard, a coffee machine, a projector and piled annual reports patiently await the

arrival of owners. The stage is set for the annual general meeting (AGM) of the owners’ association (OA), held for a

tower in Dubai. The OA manager anticipates a good turnout this year, although his expectations dissipate as only

two owners hastily shuffle through the doors a minute before starting time. Without 15 per cent of the total

entitlements present at the AGM, an OA cannot achieve a quorum. If the AGM is adjourned, the second meeting

scheduled will proceed, irrespective of attendance.

Decisions to be made at the AGM include the selection of the OA’s board of directors, the annual budget, and

general motions. When only two attendees contribute to this decision-making process, the burden of liability and

responsibility by default becomes the role of those perhaps not best suited or qualified.

Members of OAs are expected to volunteer their time and experience towards the preservation of the asset. But

sometimes many desultory owners and members of the board of directors aren’t engaged with their building or

are involved with the community. They also lack the education required to enhance and create asset value, and

they do not understand the inexorable importance of service charge collection.

What is an owners’ association?

An OA controls, manages and administers the common areas on behalf of all the owners, dealing with issues such

as maintenance, security, rule enforcement and engagement with statutory authorities. An OA manager tends to

be a jack of all trades with active roles in facility management, property management, financial management and

general communication. A significant financial obligation is required to maintain and improve ageing buildings.

Owners need to invest in a reserve (sinking) fund to ensure their building has sufficient financial resources and,

most importantly, share the obligation between all owners across the life cycle of the building and its assets.

Showing promising thought leadership, the Real Estate Regulatory Agency (Rera) has implemented reserve fund

studies, auditing the assets’ current and future capital requirements, subsequently assigning the appropriate

provision to the budget.

The material and legal challenges

Technical challenges intensify as buildings depreciate, with major issues faced towards the end of plant and

machinery life cycle. The building management system (BMS), an intelligent machine controlling HVAC, lighting,

plumbing, power, fire safety and security systems, is crucial for efficient building operation, including utility costs.

If preventative maintenance and reserves toward the replacement of building systems are not sufficiently

planned, the repair or replacement costs can negate potential gains from conservative energy consumption.

Collection of service charges presents ongoing challenges for OAs, especially when investors reside outside the

UAE and are not apprised of their obligations to the association. The local authorities are yet to indisputably

enforce legislation on owners’ service charge obligations. Unfortunately, there is a distinct lack of legislative

support to fortify the authority of OAs as a legal entity and their ability to recover debts and resolve disputes

within the community.




YEARS

Page 34



Consequences on the property

Failure to pay service charges on time, if at all, results in a deficiency to fund building operations and

consequently, the inability to pay service providers to provide quality services. As a result, service quality

decreases, owners’ dissatisfaction grows and the reluctance to pay increases. It is a cycle.

In the past, association managers resorted to deactivating the access cards of owners whose service charges were

in arrears. Now, OAs are instructed to place a lien on the property through a Notary Public, which prevents the

sale of the property. With limited recourse and no legal entity to make a claim on behalf of the association, the

courts rule in favour of the delinquent owners — a troubling and yet very real occurrence.

Legislative framework is not the only cause of the problem. Some private developers have been criticised for

setting service charges artificially low to entice customers, where in reality, insufficient contributions create a

budget deficit, damaging the financial health of the building. The effect is cumulative, long lasting and difficult to

repair.

From the emblematic cultural diversity of the UAE derives an equivalent diversity of expectations and

understanding of service provider performance. The acid test is allowing the market to mature, so measurable

benchmarks and industry standards for service providers can be established.

Moving forward

It is important that board members, owners, association managers and tenants are educated to address industry

challenges, with clear and consistent communication from key industry stakeholders. There are now a number of

training courses available to OA managers and board members. Broadening this knowledge base across real

estate industry disciplines will help everyone entering this market segment understand their rights, obligations

and mitigate potential disputes.

With Dubai on the world stage as the Middle East’s regional hub, OAs will play a significant role in delivering

quality services to inbound foreign investors and the buildings they occupy. Coupled with Dubai’s reliance on a

mature real estate market and the freehold, jointly owned property concept, associations need upskilling. We are

confident in Dubai’s ability to adapt and grow and meet the demands of a progressive city.

The writer

Joel McQueen is Director, Head of Commercial of Core Savills. The views expressed here are his own.

Source: Gulf News

Back to Index




YEARS

Page 35



DUBAI GETS TOUGHER ON FIRE SAFETY Wednesday, April 26, 2017

While the UAE’s new Fire Safety and Life Protection code introduces more stringent penalties on violators, it also

represents a huge step towards eliminating some of the major causes of the high-profile fires in recent years. The

updated code will crucially ensure all new developments will use fire-safe external cladding materials. Existing

buildings will also have to comply with new maintenance standards.

Around 1,000 buildings across the UAE are believed to be covered in older-specification cladding panels,

according to Ameet Sardesai, director of engineering at Al Fajer Facilities Management.

“Inspectors from each fire station will be carrying out regular inspections in the areas they cover to check if the

buildings comply with the rules,” says Sardesai. “It will be the primary responsibility of the building developers to

ensure that the cladding installed in an existing building is adequately safe, durable and built to last. If this is not

the case, then these should be replaced when the building undergoes maintenance. As per standard practice,

maintenance is done once every five years.”

Sardesai believes the new fire code, which came into force in January, will massively help in preventing the threat

of major fires in the UAE’s high-rise buildings. Under the new arrangement, penalties ranging from Dh500 to

Dh50,000 will be meted out when safety requirements are not met. Third-party inspection is another essential

part of the updated code.

Upgrade

From 707 pages, the new code now has 1,562 pages with 20 chapters and some 784 3D illustrations that help

engineers to comply with regulations and plan safer buildings.

“Existing chapters of the guide were updated to cope with the rapid development in various economic sectors in

the country,” says Sardesai. “The chapters added to the new code include new requirements for villas, fire alert

and alarm systems of residential villas, requirements for the boats in the marina and how they should be docked.”

For the new buildings, Sardesai says there are new requirements for fire and safety equipment, which could

minimise the outlay for investors. “With the passive and active systems for firefighting equipment, investors will

know the budget they have to put from the beginning of the project,” says Sardesai. “For existing buildings, the

cost factor will depend on the amount of compliance that the existing cladding has with the new norms of fire

safety. Hence, the cost could be nominal or sizable based on this factor.”

Nanotechnology

Sardesai says at least 70 per cent of fire incidents in buildings in the UAE were caused by faulty electrical circuits

and generators. The government is therefore working on new technology to manage such risks.

“The Dubai Civil Defence has already initiated using smart systems and technologies, which will be able to turn

buildings into smart buildings and help prevent fires from erupting,” he says. “They have begun employing

nanotechnology as part of their work in the first quarter of 2017, which will assist in fighting fires and getting rid

of large fire extinguishers.”

The new structure also places a greater responsibility on all building stakeholders, including owners, contractors,

consultants, engineers, community members and even tenants, in case of a fire.




YEARS

Page 36



“Stakeholders such as consultants, property developers and residential owners are required to jointly sign off

upon completion of every project, before the final approval from the Civil Defence,” says Faizal E Kottikollon,

founder and chairman of KEF Holdings. “It safeguards the tenants to a great extent. While this may add to the

approval processes for developers, ultimately it will ensure that all necessary precautions are taken by all

shareholders involved in the project to ensure fire hazards are considerably minimised.”

He adds, “The system is expected to include sections regarding access to the disabled during emergency

evacuations and other design elements that can reduce the risk of fatalities in case of a fire or safety hazard. Such

precautions are crucial to ensure that all stakeholders involved in all projects abide by a universal set of rules and

regulations.”

Better practices

James Garbutt, vice-president of facilities management at Jumeirah Group, believes the new fire safety code will

make building owners and maintenance providers pay more attention to fire risks, particularly the type of

cladding used and its lifecycle.

“Best building management practice requires building owners and maintenance providers to know what products

and materials are in their buildings and understand the risk impact of any deficiencies in their design,” says

Garbutt. “It will help educate building owners about the benefits reserve and sinking funds for large future

expenditure on their buildings, which is a significant move towards a more mature real estate market.”

In the UAE, experts say many building owners and maintenance providers may not be spending enough on fire

prevention and safety measures for their buildings. “With a heightened awareness of the deficiencies and non-

compliance of building cladding, I expect building owners and their maintenance teams will now start to consider

the longer-term requirements of their buildings and the need to have a properly performing external cladding

system,” says Garbutt. “In the long run, a well-maintained building will cost less to maintain than a poorly

maintained building.”

Most cladding systems deteriorate and need to be replaced at some point during a building’s lifetime. A cladding

system’s lifecycle tends to range from 20 to 50 years. This can be much less in the UAE because of the climate,

exacerbated by poor maintenance. Garbutt says replacing the cladding to improve fire protection should be seen

as an opportunity to upgrade the thermal insulation, sustainability and image of a building, delivering new

economic benefits to the property.

“The new code also has requirements for third-party, independent inspections that will cost developers more, but

this is a small price to pay when compared to the cost of rectification works if the cladding system’s design and

installation are not done properly,” says Garbutt. “In fact, I suspect a building that has a third-party inspection

carried out would potentially be able to command an increased market value, which would probably be greater

than the cost of the third-party checks.”

Strict enforcement

David O’Riley, managing partner of fire safety consultancy Britannia International, believes the old code had

already set a very high standard of quality protection. Having inspected more than 300 buildings in the past eight

years, he has concluded the problem is more to do with adherence to the code.

“It should be remembered that regulations without enforcement are just words on a piece of paper — almost

worthless,” says O’Riley. “From what I have been able to ascertain, the revised code does seem to be good news

for tenants and purchasers of property yet to be constructed, but my question is what it does for those buildings

under construction or the existing building stock, which of course is substantially larger than new build.




YEARS

Page 37



“If the reported fines of Dh50,000 for non-compliance for new buildings are correct, they are in my opinion wholly

inadequate. Given the size of the contracts relating to fire protection, these fines should start at Dh500,000 — this

would encourage decision makers to take notice of the regulations, which after all have been in place for many

years.”

Although maintenance is a big issue, O’Riley says most fire safety systems are not correctly maintained, rendering

them ineffective in an emergency. “Regrettably, I am not aware that the revised code deals with this every

important issue at all.”

O’Riley also believes that mandating third-party inspections won’t necessarily achieve the desired results because

many of the non-compliance issues are a combination of factors. Understanding these varied factors is important,

he says.

Further clarity may also be required to improve the process, including clear rules on who will decide which

companies will be licensed to carry out the checks, O’Riley says. Their responsibilities will also have to be clearly

laid out, as well as a specific set of protocols against which inspections are to be carried out.

“The irony is that if developers had been more interested in protecting their reputation instead of maximising

profits, then they would have ensured that the lead consultant on their projects was held to account on the

compliance of the fire safety provisions both during construction and before the final handover of each property,”

says O’Riley.

“This simply hasn’t happened because it was much easier and cheaper to simply pass the buck to the new owners.

If the revised code does ensure that all stakeholders are genuinely accountable, then it should be welcomed by

everyone with open arms.”

Property managers’ role in reducing risk

To mitigate and manage fire risk, property managers must understand the products and materials that have been

used in the buildings that they manage. According to Andrew Jones, senior surveyor, project and building

consultancy, at Cavendish Maxwell, this will also assist with maintenance works when mechanical, electrical and

plumbing assets and other elements of the building break down or reach the end of their serviceable life.

“Replacement materials can be easily sourced, which will minimise downtime,” says Jones. “The building manager

should have an accurate and detailed inventory or asset list, which details the make, model and maintenance

record of all building assets. This information should be provided by the developer and handed over at project

handover.”

With regards to sandwich cladding panels, Jones says details of the manufacturer and type of infill should be

specified in the operations and maintenance manual, which should always be handed over by the developer to

the property manager.

“The difficulty arises when there is no record of the cladding panels used,” Jones says. “If the building was

completed before 2012, it is likely that the cladding panels will not be fire rated. Independent surveyors can be

appointed to undertake intrusive surveys or take core samples of the cladding to confirm the materials used in

construction, which will allow the risk to be assessed by the building manager so appropriate action can be

taken.”

Jones says existing towers that have been approved by the Civil Defence do not have to be altered and although

no deadline has been set to replace cladding panels of existing buildings, this may change in the future.

Hina Navin

Source: Gulf News




YEARS

Page 38



Back to Index




YEARS

Page 39



WHAT IS ‘GRANTED LAND’? Wednesday, April 26, 2017

Last year the Dubai Decree No 31 of 2016 on Mortgaging Granted Lands in Dubai was issued, permitting holders

of granted land to mortgage the property, subject to certain conditions. It is expected that the decree will

stimulate growth in Dubai by enabling developers, who hold granted land, to obtain finance for their projects by

mortgaging the granted land. The Director-General of the Dubai Land Department (DLD), Sultan Butti Bin Mejren,

has said the decree is a key legislative initiative that will have a positive impact on the real estate market.

What is granted land?

Granted land is land that has been gifted by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-

President and Prime Minister of the UAE and Ruler of Dubai, to a UAE national, at no cost, for commercial or

industrial purposes or residential purposes.

Granting land in this manner furthers Dubai’s leadership vision of ensuring a dignified life for its citizens by

enabling commercial and industrial assets to be developed, as well as homes to be built. Granted land is not

freehold and is subject to various restrictions.

For example, granted land cannot be disposed of unless the UAE national obtains special permission from Shaikh

Mohammad or, in case of commercial and industrial land, the UAE national converts the granted title to freehold

upon payment of a fee and in accordance with Decree No 4 of 2010 on Regulating Ownership of Land Granted for

Industrial and Commercial Purposes in Dubai.

Key features

The decree permits a holder of granted land to mortgage that land under the following conditions:

if the granted land is residential, the monies arising from the mortgage must be invested in maintaining,

expanding, constructing or replacing the building;

if the granted land is commercial or industrial, the monies arising from the mortgage must be invested to

achieve the purposes of the original grant; and

the mortgage must be registered with the DLD.

The DLD can only register a mortgage over granted land if:

the borrowed amount will be used to achieve the purpose for which the land was granted; and

the mortgagor has a construction licence issued by a competent authority.

If a mortgagor defaults, the decree provides mortgagees with a legal right to sell the granted land at a public

auction and under the supervision of the DLD, provided that a 30-day notice is given to the mortgagor to rectify

the default.

All disputes relating to mortgages over granted land are to be heard through the Civil Court.

What changes compared to the old rules?

The decree follows previous orders and instructions on mortgaging granted land as set out below:




YEARS

Page 40



Instructions issued on September 20, 1994 from the Ruler of Dubai. By these instructions, all mortgages over

granted land were strictly prohibited, and any mortgage made in violation of this instruction was considered

null and void.

Order issued on May 14, 1996 from the Ruler of Dubai. By this order, granted land, whether residential or

commercial, could be validly mortgaged.

Instructions issued on June 5, 1996 from the Ruler of Dubai. By these instructions, a mortgage over granted

land could only be registered at the DLD if the DLD had verified that the amount of the mortgage was used for

the construction of a building on the granted land and payment of the mortgage funds had been made in

such a way that ensured the mortgage was used for its intended purpose; the mortgagor had a building

licence for commercial development; and the mortgagor had obtained a no-objection letter from the Ruler of

Dubai permitting the mortgage of the granted land.

It is important to note that the decree provides that all prior regulatory measures that are inconsistent with the

new provisions will be repealed, including the above.

Why is the new decree important?

It is expected that the decree will stimulate real estate growth in Dubai by enabling developers who hold granted

land to obtain finance for their projects; encouraging banks to lend against granted land by providing them with a

legal right to sell the granted land at public auction if the mortgagor defaults; and providing a dispute resolution

process.

However, it is likely that further regulation will be issued to allow the DLD to verify that the borrowed amount will

be used to achieve the purpose for which the land was granted.

The writers

Shahram Safai is a partner and Anna White is an associate at Afridi and Angell’s Dubai office. The views expressed

here are their own.

Source: Gulf News

Back to Index




YEARS

Page 41



THE TALL ORDER OF MANAGING

SKYSCRAPERS Wednesday, April 26, 2017

From the highest standards of health, safety and security, to maintaining infrastructure and comfort levels,

Facilities Management (FM) is responsible for the well-being of not only the buildings it manages, but also of the

residents. While any tower requires that a host of interlinked solutions, teams and mechanical operations work

together seamlessly for its smooth maintenance and functioning, in super-tall towers the issue gets magnified

manifold.

PW spoke with Ali Al Suwaidi, board member of the Middle East Facilities Management Association (MEFMA), on

the intricacies of facilities management for super-tall towers. Ali has previously also been part of the operations

team of the iconic Burj Khalifa.

A vertical city

Managing tall towers can involve unique aspects like wind velocity alarms and extremely high water pressure

levels, given that such super-tall structures are vertical cities in the air. Also, considering the popularity of mixed-

use projects, the various functions and aspects of operations and FM increase dramatically. “FM in super-tall

buildings is like you are in charge of an airplane. You are no longer on the ground. A small part of the building is

on the ground and the rest is in the sky” says Ali.

The pull of gravity

Given the vertical expanse of super-tall towers, gravitational force comes into play to a large extent, making even

simple FM tasks complex and critical. “Gravity plays a big role”, adds Ali. “For example, leakage. You don’t want to

develop a leak because the gravity here is maybe 10 times that of normal buildings and the pressure developed is

really huge compared to other buildings. And not only in water. Even in electricity. Also, the evacuation is not so

easy. So you have to be pro-active in bringing the right information from the critical systems to make sure you act

before the problems are taking place. ”

Forewarned is forearmed

The complexity of being forewarned about potential accidents is heightened in super-tall towers, given the

massive effect it can have on the residents and the building. Thus the FM teams need to constantly remain on top

of building operations, mechanics and equipment, ensuring all systems are functioning correctly and effectively.

Pre-alarms set to defined parameters for water pressure or voltage should alert FM teams to faults and potential

problems to avoid any major accidents, as a small lapse or negligence can lead to a significant impact.

“You need to ensure that you have set all the parameters of the pre-alarms in a way that you get alerted much in

advance to help you to prevent accidents”, says Ali. “For example, if the water pressure needs to be seven bar, and

the pressure release valve that helps to reduce pressure and maintain it, is jammed, then the pressure will

increase, leading to a burst pipe. If I don’t want a water leak alarm, I need a pressure sensor to tell me the

pressure is in the pipe so that if the pressure goes beyond normal conditions, I can go and isolate the valve to

avoid a burst pipe”.




YEARS

Page 42



The pilot room

The control room is “like a pilot room” says Ali. “It’s as if I am driving the building. So all critical systems pre-

information should come to me.” The control room monitors and manages the various dynamic parameters of a

super-tall tower.

Key responsibilities in a super-tall structure

Understand the design of the building.

Establish pre-alarm parameters like water pressure, and voltage drop among other things.

Ensure pre-alarms are reaching you in time.

Constantly and proactively monitor, isolate and resolve issues to avert accidents.

Use technology to achieve the best safety, efficiency and effectiveness.

The Burj Khalifa

There are seven double-storey mechanical floors, located every 30 storeys. These house the electrical

substations, water tanks and pumps, air-handling units, etc., that are needed for the operations of the tower.

And all these need to be in perfect working condition to ensure the building functions smoothly.

The Burj is shaped as a triple-lobed footprint, an abstraction of the six-petalled desert flower, Hymenocallis.

The total built-up area of the tower is 5.67 million sq ft across 163 floors.

26 helical levels decrease the cross-section of the tower incrementally as it spirals skyward.

The Burj Khalifa has used a record-breaking 330,000 cubic m of concrete, 39,000 metric ton of reinforced

steel, 103,000 sq m (1.1 million sq ft) of glass and 15,500 sq m (166,800 sq ft) of embossed stainless steel.

The 24,348 cladding panels cover a curtain wall area of 132,190 sq m.

The shimmering exterior minimises heat transmission and saves energy.

The tower’s water system supplies an average of 946,000 litres (250,000 gallons) of water daily.

The tower runs a unique condensation collection system that provides about 15 million gallons of supplement

water per year, equal to about 20 Olympic-sized swimming pools.

The tower’s peak electrical demand is 36 MW, equal to about 360,000 bulbs of 100 watts operating

simultaneously.

There are 57 elevators in the building.

The tower boasts the fastest double-cabin elevator in the world and also the tallest elevator in the world

serving 140 floors.

It takes three to four months to clean the entire façade.

Access to the tower’s façade for washing and maintenance is provided by 18 permanently installed track and

fixed-telescopic, cradle-equipped building maintenance units (BMUs).

The BMUs are stored in garages within the structure and are not visible when not used.

Window washing is done vertically from the top to the ground.




YEARS

Page 43



Source: Gulf News

Back to Index




YEARS

Page 44



FIND THE RIGHT LOCATION Wednesday, April 26, 2017

Investing in a suitable property in a premium zone can be highly rewarding for a long-term stakeholder, says Latif

Habib, CEO of Fortune 5 Real Estate. Citing Cassia, part of developer G&Co’s Fields master-plan development in

the heart of Mohammad Bin Rashid Al Maktoum City District 11, as an example, Habib says, “It’s much easier now

to purchase your home in such a community before all the amenities get filled in. There will soon be a time when

you find some limitations on the availability of stock and space, especially in a villa segment.”

Cassia promises a lifestyle inspired by its natural surroundings. With easy access to some of the world’s most

celebrated attractions, including leading sports facilities such as the beautiful racecourses at Meydan, the golf

courses at Badia Golf, Dubai Creek Golf and Yacht Club and Greg Norman’s Earth and Fire championship golf

courses, the Crystal Lagoons and sweeping parklands, the biggest attraction of this secluded gated community is

the abundance of green spaces.

The development is also minutes away from the Meydan One Mall, which when completed will include the world’s

largest dancing fountains, longest indoor ski slope, bicycle and jogging track and several other indoor sports

facilities, making it one of the latest attractions of the city.

In an interview with PW, Habib speaks about the importance of location and why Cassia ticks the right boxes.

What makes District 11 or Meydan an ideal location for buyers?

Besides the abundant greenery, District 11 has the longest cycling and running tracks, a tennis academy, golf

courses and aqua park and is a great place for sports lovers to be in. Shaikh Hamdan Bin Mohammad Bin Rashid

Al Maktoum, the Crown Prince of Dubai, lives, plays and works in the same vicinity and this makes it a very

prominent zone in the city. Meydan is an extremely vibrant area that has quite a few villas built and given to

executives of Emirates Airline. It is better for the buyers to be a part of this community before all the amenities

are built, since this will offer value appreciation to their investment in the long run.

Meydan is also strategically located, just 10-15 minutes’ drive from popular areas such as the Dubai Mall,

Downtown Dubai and Dubai Water Canal. Being centrally located, it provides easy accessibility to Al Ain Road 66,

former Emirates Road E311, and Al Khail Road. Meydan also has parks, shopping facilities, recreational areas,

schools and nurseries.

When will you start delivery of Cassia?

Cassia will have 348 town houses that will be delivered mid-2019. The project consists of four-bedroom G+1

family homes. The middle units of 2,787 sq ft start from Dh3.2 million, and end units of 3,195 sq ft start at Dh3.7

million.

How has the response been from buyers?

We had a soft sales launch six months back, and half of the total project inventory is already sold out. We have

also opened a state-of-art sales office on-site for people to come to experience the project, know the location and

the developer. We take them through a virtual tour of the Cassia journey. Since its launch, it has attracted many

end users to the project.

Who has been buying in Cassia, so far?

We have all kinds of nationalities. Since we released our guaranteed rental income scheme for a limited number

of villas, we have also received a huge number of enquiries from investors. We are offering an attractive payment




YEARS

Page 45



plan of 50 per cent payable between the booking and handover, and the remaining 50 per cent over two years

after handover.

Usually, the main concern for investors at the time of transfer is how long it would take to rent their unit. Our

guaranteed rental scheme resolves this matter and gives buyers the comfort and confidence to invest in our

project. We take over full responsibility from handover and ensure buyers of middle family units a rental income

of Dh400,000 (Dh200,000 per year) and buyers of end family units an income of Dh460,000 (Dh230,000 per year)

over the next two year.

Historically, the Meydan community attracts a lot of buyers who are living and working in Downtown, Dubai

International Financial Centre, Business Bay, Dubai Healthcare City and the airport areas.

We observed that professionals who rented two- or three-bedroom apartments in these zones for over two or

three years had outgrown their household space and need an extra bedroom or two, either because their family

has grown over the years or extended members of the family come and visit them. They also needed open spaces

to relax, but are not comfortable living away from a central location. So Meydan is always a next move for them.

What is your advice for the buyers?

I believe there are only three words that are important in real estate: location, location and location. It is

important for customers to acknowledge that when you live in the middle of the city, it is always beneficial in the

long run.

The central parts of the city will have limited availability of land, so buy real estate and hold on to it. When there is

limited supply in the market, good locations will always prevail with multiple offers. So, when you choose to invest

in or buy a home, look for a property in an excellent location with great views. Be aware of what will be built next

to your property, ask questions and have an expert to help you. All this will add value to your investment in the

future.

Source: Gulf News

Back to Index




YEARS

Page 46



ESHRAQ CONFIRMS DH50M INVESTMENT

IN TERRA REAL ESTATE Monday, April 24, 2017

Eshraq Properties confirmed the investment of Dh50 million in Terra Real Estate Investments, representing a

portion of the total paid up capital of Terra, according to a statement on Abu Dhabi Stock Exchange.

Terra owns built properties in the UAE, some of which will be used to seed a real estate investment trust, to be

known as Etihad Reit, and which is supposed to be proposed for the public offering, the statement said.

The statement also said that Etihad Reit is not a separate investment made by Eshraq, but a Reit to be established

by Terra, where Eshraq is one of the funding investors.

Eshraq Properties posted a net loss of Dh575 million for 2016 compared with a net profit of Dh1.6 million a year

earlier.

The company owns three major properties including the Gateway project in Abu Dhabi, Jumeirah Rise and Marina

Rise projects in Dubai.

It recently announced an agreement with Mubadala Real Estate and Infrastructure to explore partnership in

developing plots owned by Mubadala on Al Maryah Island and by Eshraq Properties on Al Reem Island.

Jassim Al Seddiqi was appointed as the chairman of Eshraq Properties last year. He is also the managing director

and chief executive of Abu Dhabi Financial Group.

Source: Gulf News

Back to Index




YEARS

Page 47



RAK CONTINUES TO STRUGGLE WITH

HOTEL ROOM UNDERSUPPLY Wednesday, April 26, 2017

Whilst other locations grapple with the issue of oversupply, Ras Al Khaimah continues to face the opposite

problem: undersupply.

“There is a significant pipeline of hotels and resorts in the emirate, that are expected to barely meet the

increasing demand,” Yannis Anagnostakis, CEO of RAK Hospitality, said in an interview on Wednesday.

The emirate has 3,600 hotel rooms, and will need to add an additional 4,000 room by 2018 to cope with demand.

“I believe that by next year we will be slightly undersupplied,” Anagnostakis said, adding: “we need to catch up and

expedite the delivery of new hotels in the emirate.”

RAK is targeting 1 million arrivals by the end of 2018, and will need to increase its capacity to deal with this

demand.

In the coming years, Mövenpick, InterContinental, and the Hilton have all confirmed they will be expanding their

presence in the emirate.

The first of these will be the 240 room mid-market Hilton Garden Inn, developed by RAK Hospitality, set to open

later this year.

“We are not afraid of the competition, and our confidence comes from the fact that we know we’ll reach a point of

undersupply within the next 12 months,” the CEO said.

Inventory

There is a current pipeline of 3,000 rooms for the next three years, although if RAK sees the visitor numbers it has

set out to achieve, these additions to the emirate’s inventory will quickly be swallowed up, creating an

undersupply situation again.

“There is talk of 5,000 more keys coming, and over the next 10 years we expect the inventory to triple,”

Anagnostakis said.

A large growth in visitor numbers from China, India, and Europe has necessitated this increase in hotel rooms,

and the emirate’s hospitality authorities are looking towards developments like the Al Marjan Island to provide

the capacity.

“Ras Al Khaimah needs in the next 10 years around 15,000 hotel keys, and we are targeting 8,000 of those rooms

to come from Al Marjan Island by 2025,” Abdullah Al Abdooli, Managing Director of Al Marjan Island, said in an

interview with Gulf News.

Al Marjan Island is a man-made archipelago consisting of four islands, and covering a total area of more than 2.7

million square metres.

Investment

The development currently has 1,500 operational hotel rooms.

Such an increase in capacity on the island “will require billions of dollars” of investment, according to Abdooli.




YEARS

Page 48



According to the senior executive, the majority of this investment will come from Asia.

“We are targeting Russia, China, India, and Europe — especially the UK, for investment,” he said, adding that the

majority was coming from the first three countries.

Despite saying that he was satisfied with the regulations surrounding the hospitality sector, Abdooli added that as

the emirate’s tourism sector developed, so should the legislation.

“Whilst we currently have good rules and regulations, we would like to develop them, to make the emirate more

attractive,” he said.

Source: Gulf News

Back to Index




YEARS

Page 49



15 HOTELS WORTH $10 BILLION TO OPEN

IN BAHRAIN Wednesday, April 26, 2017

Bahrain will receive 15 new hotels, valued at $10 billion, by 2020, according to a statement from the Bahrain

Economic Development Board (EDB) on Wednesday.

Brands like The One&Only, Fairmont, The Address, and Wyndham are set to mark their entry in to the Gulf

country over the course of the next three years.

These hotels will add to Bahrain’s existing portfolio of over 190 hotels and resorts. This includes 18 five star hotels

and 48 four star hotels. In total, the country’s hotels currently offer a capacity of 16,500 rooms.

In a separate statement, Khalid Al Rumaihi, Chief Executive of the EDB, said the new hotels were expected “to

increase hotel capacity by around 4,000 rooms in the country by 2020 and fill gaps in the market.”

“These developments will both help to meet rising demand and attract new visitors to the kingdom. Bahrain

showed strong growth in tourist numbers in 2016, witnessing a 6 per cent increase in the number of tourist

arrivals,” he added.

Bahrain received 12.2 million people in 2016, and in 2015, the kingdom’s tourism sector accounted for 6 per cent

of the total GDP, contributing revenues of $1.9 billion to its economy.

The country’s tourism market is predicted to grow at a compound annual growth rate (CAGR) of 4.8 per cent.

Source: Gulf News

Back to Index




YEARS

Page 50



EMICOOL’S IPO LIKELY TO TAKE PLACE THIS

YEAR, SAYS UNION PROPERTIES CHAIRMAN Saturday, April 29, 2017

The owners of Emicool plan to sell a 30 per cent stake in the district cooling company through an eventual IPO.

Joint owners Union Properties and Dubai Investments each plan to sell 15 per cent of district cooling company

Emicool by the end of this year, according to the Union Properties chairman Khalid bin Kalban.

Mr bin Kalban, who is also managing director and chief executive of Dubai Investments, said that the stakes were

likely to be sold via a pre-IPO deal ahead of an official listing.

This is expected to take place by the end of the year, although it will depend on the state of the markets and the

results of a valuation exercise which is currently under way, Mr bin Kalban said.

"The plan is to offload that 30 per cent, hopefully, if the market situation allows, by the end of this year. It will be a

pre-IPO and then the company will be IPO’d."

He said that it had not yet agreed a deal with a potential buyer, arguing that it was still awaiting the outcome of a

report placing a valuation on the Emicool business.

"There are many parties who are interested, but no one has been selected yet," he said. "We are waiting for the

evaluation to come through. And then we will decide."

The stake sale has been on the cards for at least 18 months, but turmoil on local financial markets has meant that

plans to bring the business to market have twice been postponed.

"The market situation is very unpredictable, and there is not much liquidity," Mr bin Kalban said. "Even though

there are some good companies that are operating and listed, you know the value of their shares have not been

… most of them are trading below their book value."

Union Properties declared a pre-tax profit of Dh211.4 million for 2016, which was a 51 per cent decline on the

Dh434.6m achieved last year, and revenue was 22 per cent lower at Dh1.13 billion.

However, this was partly due to a gain on valuation of its property of Dh122m last year, compared with almost

Dh670m in 2015.

Emicool reported an improved performance, with revenue up by 15 per cent to Dh353.1m and profit increasing

by 27 per cent to Dh73.3m. By year-end, the book value of its net assets stood at almost Dh710m. During the

year, Emicool was appointed by Damac to provide district cooling to the Damac Hills master development.

"It’s a successful company," Mr bin Kalban said. "They have been able to win many projects in the last 12-18

months."

Union Properties’ shares were suspended on Thursday on the instructions of the Securities and Commodities

Authority amid market rumours about the company and Mr bin Kalban’s own position.

However, when asked about this, he said: "There are board changes, but I am there. As far as the election and the

AGM, everything was OK. There were no issues."

He said that there is often speculation surrounding the company’s shares, but that this was not something that

concerned him.




YEARS

Page 51



"We need to drive the company to be a solid company rather than sit and speculate on the shares."

Union Properties’ shares closed on Wednesday (before its AGM) at Dh1.01 – 10.6 per cent lower than at the start

of the year.

A report published by PwC last month showed that the amount of money raised through IPOs in the Gulf region

last year dropped by 44 per cent last year to US$782m – its lowest level since 2013 as a result of low oil prices,

fiscal tightening and a lack of liquidity in the financial sector.

However, Steve Drake, the head of PwC’s capital markets team in the Middle East said: "As the regional

geopolitical scene stabilises and oil prices recover, market participants may regain confidence sooner than

expected. There are a number of positive signs for 2017 and we hope that the capital market in the GCC will

overcome 2016 shock waves."


Back to Index




YEARS

Page 52



AL QUDRA TO BUY AL RAYAN INVESTMENT

IN DH1BN ALL-SHARE DEAL Saturday, April 29, 2017

Abu Dhabi-based investment company Al Qudra Holding (Al Qudra) has announced that it is set to buy Al Rayan

Investment for Dh1 billion.

The transaction will be completed through a share swap for Al Qudra shares, with the company issuing 210.4

million new shares, expanding its existing share base from 600 million shares to 810.4 million. Following the

acquisition, the combined entity will have total assets worth Dh4 billion.

A statement from Al Qudra said that its plan would increase the company’s revenue from "diversified and

sustainable sources".

It said that the deal would be led by the Department of Finance and by First Abu Dhabi Bank, which is the official

shareholders’ registrar for both businesses.

Al Qudra is also progressing with plans agreed last year to raise Dh250 million through a convertible bond issue,

with the bonds offering a guaranteed annual coupon. The bonds will be listed on the Abu Dhabi Securities

Exchange, and the company’s shares will trade on the secondary market.

The decisions were taken at the firm’s annual general meeting, where board directors approved accounts which

showed that it increased its net profit by 28 per cent to Dh264m on revenue of about Dh1bn.

Vice-chairman Khalifa Yousef Al Khouri said: "This growth is a testament to our commitment to remain a

preferred investment partner as we continue to steadily work towards our objectives."

The company launched several property projects last year, including the Traditional Souq, a 245,000 square

metres development near Sheikh Zayed Grand Mosque containing commercial, cultural and entertainment space

including a covered market, a theatre, an arts centre, a hotel and restaurants.

It also launched Al Sadu Towers – a five-tower luxury apartment project offering 1,300 apartments close to the

Shams Abu Dhabi complex in Reem Island – and a project containing 2,550 villas known as Barari Al Ain Fayda

close to the Jebel Hafeet mountain base.

Alongside its real estate projects, the company has investments in an array of other businesses, including a

manpower firm, a sports management business and a public relations company, among others.

A report on Abu Dhabi’s residential market published this month by JLL found that almost half of all of the

residential units in the pipeline are in the "new island communities" of Reem Island, Saadiyat Island, Yas Island

and Al Raha Beach.

It said that completion levels remain fairly low, however, with only 3,100 homes handed over in Abu Dhabi last

year (bringing the total to 248,000), and although 5,000 are scheduled to complete this year, handover of much of

this is expected to be delayed.

"Since 2015 annual supply completions have dropped to long-term lows as the market adjusted, liquidity

tightened, developers became more cautious and due to the impact of tightened planning policy and the new real

estate regulations," explained David Dudley, the head of JLL’s Abu Dhabi office. "This reduction in annual supply

completions is welcomed at a time of weaker demand."




YEARS

Page 53




Back to Index




YEARS

Page 54



SNC LAVALIN RAISES MONEY FOR ATKINS

BUYOUT Saturday, April 29, 2017

SNC Lavalin, the Canadian engineering and construction company that has made a £2.1 billion (Dh9.98bn) offer

for the UK-based Atkins Group, has announced that it has raised more than $1.2bn to help pay for the deal. The

firm has raised more than C$880 million (Dh2.36 billion) through a public offering of subscription receipts and

more than C$400m through a private placement of subscription receipts with Canadian pension fund Caisse de

dépôt et placement du Québec.

The company said that the amount raised would sit in an escrow account until July 31, by which time it expects to

close the deal, subject to regulatory and court approvals (which will need to be in place by October 27).

If no deal has been agreed by that time the money will be returned, with any interest earned during that period

also being distributed back to shareholders on a pro-rata basis.

The merger between the two organisations will create a combined entity with combined revenues of over C$12bn

and 53,000 employees. The Middle East and Africa will be the biggest region in terms of employees, with 19,625

staff according to documents filed by SNC Lavalin explaining the merger.

SNC Lavalin employs around 11,000 staff in the Middle East region alone, while Atkins employs about 2,400.

SNC Lavalin also announced on Thursday that it had been chosen by Saudi Aramco to provide engineering and

project management services for its Berri Increment programme, through which it is looking to boost output from

the Berri field on the country’s east coast. The work will involve front-end engineering design for a new, gas oil

separation plant at Abu Ali and facilities at its Khursaniyah plant for handling hydrocarbon condensate.

Martin Adler, the president of SNC Lavalin’s oil & gas business, said: "SNC Lavalin has worked with Saudi Aramco

for nearly 40 years and has maintained an impressive track record of safely and successfully delivering projects.

This contract award shows the depth of our commitment to customer relations in Saudi Arabia and the region as

a whole."


Back to Index




YEARS

Page 55



ORASCOM RETURNS TO PROFIT BUT

EQUITY WEAKENS DUE TO CURRENCY

SHIFTS Thursday, April 27, 2017

A firmer grip on costs helped Orascom Construction move back into the black in 2016, with the company

declaring a net profit of US$48.7 million last year, compared with a loss of $347.8m a year earlier.

However, its balance sheet still took a hit from currency movements following the devaluation of the Egyptian

pound, meaning that it suffered a total comprehensive loss (after currency movements) of $214.4m. This led to a

46 per cent decline in the company’s net equity position to $302.4m.

Egypt-headquartered Orascom Construction, whose shares are listed on Nasdaq Dubai, grew revenue by almost 4

per cent during the year, and its chief executive, Osama Bishai, said that its Middle East and North Africa division

"built on its robust performance" achieved in the previous year, but its bottom line was hit by the poor

performance of its US division.

That was because of delays to the Iowa Fertilizer project – a large, new $2bn fertilizer factory built for its former

parent company, OCI, which finally began production last week.

A summary income statement prepared for shareholders found that its US operations lost $246.5m, although this

was a 53 per cent reduction on the $523.2m lost in the same period a year earlier.

Its Mena operation, meanwhile, grew its net income by more than 31 per cent to $231m. The company generated

53 per cent of revenue from the region last year, with the bulk (47 per cent of total revenue) earned in Egypt.

"Operationally in Egypt, we continue to make excellent progress on our large infrastructure projects and have

already surpassed the execution record we set last year for the fast-track execution of power projects," Mr Bishai

said.

The company’s backlog of projects dropped by 21 per cent over the course of the year to $5.26bn by year-end,

although it said that 15 per cent of this decline was due to the change in value, in US dollar terms, of projects

denominated in Egyptian pounds. The amount of new awards won by the company dropped by 23 per cent year-

on-year to $3.75bn.

About 62.6 per cent of its backlog is for Middle East-related work, and 53 per cent of this total, is in Egypt.

However, the company also said that it has benefited from the "resilient" performance of contractor Besix – in

which it has a 50 per cent stake.

"Not only did it record its strongest-ever set of net results but it has also secured new committed work both in the

Middle East and Europe in 2017," Mr Bishai said.

Recent contracts won by Besix include a joint venture with Orascom for the deep infrastructure works for Dubai’s

Expo 2020 site and a contract secured last year to build a new wastewater treatment plant in Jebel Ali.




YEARS

Page 56



A study published last week by BMI Research indicated that Egypt’s domestic contractors may face greater

competition in the coming years, as its "challenging macroeconomic environment" will lead its cash-strapped

government to rely much more heavily on foreign investment to fund infrastructure.

"Mirroring growing bilateral ties, we expect countries like China and Russia in particular to emerge as key

financiers of Egyptian infrastructure assets and, subsequently, for Chinese and Russian construction companies

to thereby increase their market share," it said.


Back to Index




YEARS

Page 57



UNION PROPERTIES’ INVESTORS SEEK

CLARITY ON FUTURE DIRECTION Saturday, April 29, 2017

Union Properties’ shareholders will be looking for explanations and a lot more as and when the Union Properties’

scrip starts trading again. It was on Thursday last week that the stock was suspended, setting into motion heavy

speculation about the structure of the company’s board of directors and future direction.

Market sources say some sort of update from the company could be issued shortly to the Dubai Financial Market,

and that should set in motion the launch of trading activity. The company’s stock has been under pressure and

had spent the better part of April the Dh1.01 mark. It had slipped to a low of 92 fils for this year in late February

just days after touching Dh1.15.

The announcement of its 2016 results, which saw profits dropping by half to Dh211.4 million from Dh434.6 million

in 2015, did not help either. More so as most of Dubai’s blue-chip developers came out with a strong set of

numbers or managed to hold off a steep decline.

“A clarity is needed on Union Properties’ medium term plans on the development side and how it manages to get

adequate cash flow for it,” said an industry source. “Of its existing land bank, Union Properties has managed to

extract optimum value — but the question is what next.”

Some market sources have speculated that Union Properties could go in for a strategic partner on select projects,

much along the lines of what it has been doing with Dubai Investments.

Source: Gulf News

Back to Index




YEARS

Page 58



A 120,000 SQUARE FOOT PLOT PICKED UP

AT MEYDAN Saturday, April 29, 2017

The Meydan area is turning into an investment hot spot — the master-development recorded the biggest land

deal in the year to date, according to PH Real Estate, a brokerage firm.

The plot measuring 120,000 square feet was sold to an Emirati buyer, who plans to build three custom-designed

mansions for members of the family. The seller was the businessman Kamel Alzarka.

The land, which sits directly in front of the golf course and central lakes, is probably the largest residential

freehold plot in Dubai. Myles Bush, CEO of PH Real Estate, which brokered the deal, said: “There is nothing of this

size that we know of in Emirates Hills or on the Palm Jumeirah. These kind of high-profile transactions have a

positive knock-on effect to the rest of the market.” (Last year, PH Real Estate brokered the sale of a Dh53 million

residential property in Emirates Hills.)

The Meydan district and the MBR City of which it is a part has been witness to a slew of high-profile deals since

the start of the year. Demand has also been helped by the launch of works for the Meydan One Mall, one of the

biggest shopping destinations in the works in Dubai.

Source: Gulf News

Back to Index




YEARS

Page 59



COOKIE-CUTTER OFFICES ARE SO

YESTERDAY Wednesday, April 26, 2017

Businesses are demanding greater flexibility than ever from their office space and are looking to commercial real

estate professionals to help them achieve this. Technological advances have revolutionised how businesses

operate, allowing for remote collaboration and much more flexible working patterns to emerge.

Multi-purpose spaces are the new norm

As a result, commercial real estate occupiers are increasingly looking for office spaces that can flex to multiple

purposes — a canteen that can double up as an informal meeting room, for instance, or even serve as an

auditorium-type space for the large all-hands annual or six-monthly staff meeting.

What we’re seeing is a smarter use of the space and greater efficiency as businesses look to accommodate

varying headcounts and needs from day to day. Along with these open, multi-purpose spaces that encourage a

more collaborative way of working, there is a lot less exclusive space in the form of the corner suite.

CEOs and senior management are coming out of their individual offices and into larger open spaces. This physical

permeability is leading to the breaking down of barriers from a hierarchy perspective and setting the tone across

the board within companies.

The office space as a brand identity

Brands are increasingly using their office space to communicate who they are; technology and media companies,

in particular, are keen on this approach. Candy Crush creators King.com has a young workforce that works long

hours in a relaxed environment and they want their office space to reflect this ethos.

So, the office space has bright colours, a spiral staircase running through the four floors, beanbags and fusbol

tables. This blurring of work and chill-out spaces appeals to the millennial demographic, as it makes the office a

place more attractive place to spend lots of time in.

What we’re seeing is the design of the office accommodating the specific needs of a business’s workforce and

thereby improving productivity. The wellness factor is also being incorporated into the office space and building,

from access to natural light — which has a direct correlation to productivity — to cycle racks, shower facilities,

lockers and access to gyms in order to encourage healthy lifestyle habits among employees.

Clients with larger occupier requirements tend to approach potential landlords early so that they can have input

into the design of the building itself, not just the inside. Apple started its search for space five years ahead of time

for this very reason.

The changing role of the real estate professional

This demand for a more personalised, bespoke service from both large and small businesses is changing the role

of the real estate professional. While straight brokerage does happen, oftentimes we take a collaborative

consultancy approach, working together with the client to come up with a clear brief that we go to market with.

During the process, we may challenge some of the locations on the client’s list and come up with new ones. Our

location consultant business can analyse employees’ postcode to see how a move from, say, a West End to City

location would affect their commutes.




YEARS

Page 60



Why efficiency is a top priority

Of course, there’s a delicate balancing act between the qualitative and quantitative factors of what occupiers

want. While senior executive teams want an office space that meets the bottom-line they are all-too aware that

their employees want to be in a central location with decent amenities, access to wellness and good transport.

That’s why efficiency is top of the list of priorities for occupiers; namely, how to take less space and use it more

effectively.

I’m going to go out on a limb and say that the kind of developments I’ve been talking about here will make office-

based work more attractive in the future. I don’t think remote working will disappear, but the desire for

interaction and to get things done will bring people back into the office, which itself will be a cooler and much

more welcoming place to be in.

The writer is Head of London Tenant Rep at JLL UK.

Source: Gulf News

Back to Index




YEARS

Page 61



With over 30 years of Middle East experience,

Asteco’s Valuation & Advisory services team

brings together a group of the Gulf’s leading

Real Estate experts.

Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai,

Northern Emirates, Jordan and the Kingdom of Saudi

Arabia not only provides a deep understanding of the local

markets but also enables us to undertake large

instructions where we can quickly apply resources to meet

Clients requirements.

Our breadth of experience across all the main property

sectors is underpinned by our Sales, Leasing and

Investment teams transacting in the market and a wealth

of research that supports our decision making.

John Allen - BSc, MRICS

Director - Valuation & Advisory

+971 4 403 7777

[email protected]

Jenny Weidling - BA (Hons)

Manager – Research and Advisory

+971 4 403 7789

[email protected]

VALUATION & ADVISORY

Our professional Advisory services are conducted by

suitably qualified personnel all of whom have had

extensive Real Estate experience within the Middle

East and internationally.

Our valuations are carried out in accordance with the

Royal Institution of Chartered Surveyors (RICS) and

International Valuation Standards (IVS) and are

undertaken by appropriately qualified Valuers with

extensive local experience.

The Professional Services Asteco conducts throughout

the region include:

• Consultancy and Advisory services

• Market research

• Valuation services

SALES

Asteco has established a large regional property Sales

Division with representatives based in UAE, Saudi

Arabia and Jordan. Our Sales teams have extensive

experience in the negotiation and sale of a variety of

assets.

LEASING

Asteco has been instrumental in the leasing of many

high-profile developments across the GCC.

ASSET MANAGEMENT

Asteco provides comprehensive Asset Management

services to all property Owners, whether a single unit

(IPM) or a regional mixed use portfolio. Our focus is

on maximising value for our Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures and

manuals in place to provide streamlined

comprehensive Association Management and

Consultancy services to residential, commercial and

mixed-use communities throughout the GCC Region.

SALES MANAGEMENT

Our Sales Management services are comprehensive

and encompass everything required for the successful

completion and handover of units to individual unit

Owners.

NEWS BRIEF 18 - Asteco Property Management

Documents