NEWS BRIEF 49...Palm. The project located on a plot on the crescent of The Palm Jumeirah next to the Anantara has completed 100 per cent of structural works on all three buildings,

DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN

© Asteco Property Management, 2016 asteco.com | astecoreports.com IN THE MIDDLE EAST FOR 30 YEARS

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

NEWS BRIEF 49 SUNDAY 18 DECEMBER 2016


© Asteco Property Management, 2016 asteco.com | astecoreports.com

IN THE MIDDLE EAST FOR 30 YEARS

Page 2



REAL ESTATE NEWS UAE

FALLING HOTEL RATES LIKELY NEXT YEAR AS DOLLAR STRENGTHENS AND

COMPETITION INCREASES

DUBAI

DUBAI DEVELOPER BRINGS IN WELLNESS INTO REAL ESTATE

PALMA REACHES KEY MILESTONES ON PALM PROJECT

VICTORY HEIGHTS VILLA SELLS FOR DH14M

OPTIMISM OVER DUBAI REALTY IS NOT MISPLACED

MIRAL ANNOUNCES PLANS TO DEVELOP SEAWORLD ON YAS ISLAND

NAKHEEL, RTA COMPLETE DH150M DEIRA ISLANDS ACCESS BRIDGE

DXB TO WISH 7M PASSENGERS 'HAPPY HOLIDAYS'

RTA OPENS SMART MALL IN FOUR DUBAI METRO STATIONS

DFM LAUNCHES 'IPO COMMUNICATIONS GUIDE'

CAN DUBAI PROPERTY INVESTOR PENALISE DEVELOPER FOR DELAYED OFF-PLAN

PURCHASE?

INFRASTRUCTURE WORK PAVES WAY FOR DH3BN MIRDIF HILLS PROJECT

MORTGAGE COSTS WILL RISE, BUT NOT IMMEDIATELY

KERZNER TO BUILD ATLANTIS HOTEL IN HAWAII

DAMAC AWARDS CONTRACTS WORTH DH1.26BN IN LAST FOUR MONTHS

DUBAI PLANS NEW 'STAR-RATINGS' VERSION OF RENT INDEX IN 2018

ABU DHABI

ABU DHABI REINSTATES 5% RENT CAP

ABU DHABI DEVELOPER COMPLETES ‘PHASE THREE’ OF BLOOM GARDENS PROJECT

NEAR KHALIFA PARK

INTERNATIONAL

EMAAR UNIT LAUNCHES NEW RESIDENTIAL PROJECT IN JEDDAH GATE




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PALMA REACHES KEY MILESTONES ON

PALM PROJECT

Wednesday, 14 December, 2016

Palma Holding has reached key construction milestones at its exclusive Serenia Residences development on the

Palm.

The project located on a plot on the crescent of The Palm Jumeirah next to the Anantara has completed 100 per

cent of structural works on all three buildings, including a show apartment on Level 2 of the East Wing.

Mechanical, electrical and plumbing works are ongoing, reaching up to Level 4 across all towers.

“The progress already made on this project sees us right on track to provide first-class beachfront living to

aspiring homeowners,” said Kareem Derbas, CEO of Palma Holding.

The next phase of development will install the building with ceiling works, glass and aluminium.

The Dh1.5 billion project will comprise 250 units, with handover expected by the end of next year.

To date, Palma has completed over 4 million square feet of properties in Dubai worth Dh3.6 billion with another

Dh3.6 billion in the pipeline. Flagship projects include the iconic Infinity Cayan Tower and Silverene Towers, both

located in Dubai Marina.

Source: Gulf News

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VICTORY HEIGHTS VILLA SELLS FOR DH14M


A villa in Victory Heights listed for Dh14 million has been sold, setting a new record for that high-end cluster,

according to an estate agency.

The 14,789 square feet property features six bedrooms, each featuring luxury designer bathrooms. There are two

spacious living areas — the formal library and the other setting a more relaxed ambience.

There were 40 villas transacted this year at Victory Heights, with an average price of Dh4.1 million. The plot sizes

range from 2,147 to 12,049 square feet.

“Location and easy access to all of Dubai where contributing factors in what ultimately was a property record for

an A1 on the golf course in Morella in the popular development,” said Luke Jones, Luxury Sales Director at

Luxhabitat.

Among the marketing initiatives used to sell the villa was a unique open house iftar, where the successful offer

resulted in the new owner walking away with a BMW as well. “They [Luxhabitat] were very innovative with their

marketing initiatives and attention to detail,” said the previous owner.

Source: Gulf News

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DFM LAUNCHES 'IPO COMMUNICATIONS

GUIDE'

Tuesday, 13 December, 2016

Dubai Financial Market (DFM) launched on Monday its "IPO Communications Guide", as part of the exchange’s

continuous efforts to develop various practical guides that explains the regulatory framework of going public as

well as the international best practices related to stages of implementation of an IPO.

Accessible in both Arabic and English on DFM website; www.dfm.ae , this guide is the most recent addition to

series of step-by-step booklets that offers potential issuers an insightful source to support their preparations for

going public, whether Pre-, During or Post IPO.

The guide is the outcome of fruitful collaboration with corporate communications advisors as it contains valuable

contributions from carefully selected number of leading public relations, strategic communications and law firms

including Asda’a Burson-Marsteller, Bell Pottinger, Brunswick, FTI consulting and Latham & Watkins LLP.

Essa Kazim, Chairman of DFM, said; "We are pleased to launch this guide in line with DFM’s commitment to

further reinforce the leading position of Dubai as a dynamic capital markets hub. Promoting the IPO sector by

encouraging and supporting family and private companies to go public and list on DFM, has always been a main

pillar of the growth strategy successfully implemented by the DFM over the past years.''

''We are extensively investing time and effort to support private businesses in their preparation to go public and

this has evidently delivered in the year 2014 by welcoming four IPOs. We are pursuing our efforts in order to

achieve the best possible representation of key economic sectors in Dubai, further promote the growth of the

financial sector and increase its contribution in the GDP in line with the Dubai 2021 plan," he added.

Fahima Al Bastaki, Executive Vice President, Head of Business Development Division, DFM, said: "As part of DFM’s

ongoing commitment to promote best practices of corporate communications, Investor Relations and Corporate

Governance amongst listed companies as well as potential issuers, we are pleased to launch this guide that

explains the key elements of effective communications with stakeholders.''

The guide, she explained, was DFM’s response to the huge interest we received from potential issuers who

wanted to utilize various DFM tools and models developed over the past few years.

It also sheds light on ways to develop IPO communication plans, encouraging an integrated communications

approach to reaching investors (institutional and retail), utilising a range of communication channels and digital

communication tools.

The guide also provides an insight about some of the case studies of successfully implemented IPOs on DFM.

''We would like to thank our partners of corporate communications advisors for their invaluable contribution to

this comprehensive guide on ways to develop an IPO communication plan that effectively disseminates key

messages and necessary information on the investment and success story of any potential issuer in a well-

managed and consistent way," she indicated.




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Source: Gulf News

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OPTIMISM OVER DUBAI REALTY IS NOT

MISPLACED


“It’s tough to make predictions, especially about the future …” Yogi Berra.

For Dubai real estate, the year 2016 has been dominated by hand-wringing by analysts voicing concerns about

further falls, and guarded optimism about a selective recovery in certain areas. Particularly in the mid-market, this

seems to be the case.

Even as the discourse continues to fixate on macroeconomic factors, it’s worth scrutinising the arc of history to

determine the underlying governing dynamics at play and its resultant impact on the markets.

One way to interpret the freehold data in Dubai is to stipulate that the two main corrections (2008 and late 2013)

were primarily due to exogenous factors. The 2008 boom-bust scenario was a result of the contagion effect from

the sub-prime crisis in America and Europe.

The second correction coincided with the strengthening of the dollar and accelerated due to the decline in oil

prices and its impact on the Gulf economies. While this discourse has merit, it is worthwhile to note that in both

cases, valuation criteria had started flashing warning signals in the months leading up to the correction.

Source: Gulf News

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DUBAI DEVELOPER BRINGS IN WELLNESS

INTO REAL ESTATE


You have heard of “smart homes” — now a Dubai developer is all set to lift the veil on “wellness real estate”.

MAG Property Development will launch a gated community on the Dubai Creek featuring build and lifestyle

elements focused around the wellness theme.

That means residents will have constant access to cleaner air and water internally as well as other ergonomics

arrangements, even extending to the lighting. For these support systems, MAG has aligned with New York-based

consultancy Delos Signature.

Essentially what the developer wants to offer are the same features associated with a wellness hotel — but with

additional features woven into the building’s design and extending right up to the installed water taps.

The official launch of the Creek-side project — the land falls within the Dubai Health Care City (DHCC) Phase 2

enclave — will happen early next year. Apart from 16 super-premium “mansions”, there will be low-rise residential

buildings, a wellness hotel and a 100,000-square-foot centre. The residential options will all be under freehold

status.

“It will represent a mix of health-care sciences and real estate,” said Alfredo Carvajal, president of Delos Signature.

“There are many ways to bring in a wellness way of living when developing a single-family detached home. This is

what will be attempted with the MAG project for the first time in the Middle East. While it’s easier to incorporate

into new builds, some of the solutions can be retrofitted into existing structures. But that’s not our immediate

priority.”

It was in September last that MAG confirming setting up a dedicated division — MAG of Life — that would take on

such projects. The emphasis is on the high-end for the time being, but a top MAG official said some of the

wellness solutions could be applied even for more affordable real estate offerings.

“Prior to the actual launch, we wanted to start talking about wellness real estate,” said Michael Muller, chief

projects officer at MAG. “With new concepts you have to introduce them slowly — the market situation is still

harsh, quite competitive. But with the Delos association, we have a chance to provide a full wellness ecosystem in

the residential space.”

The location will be opposite the wildlife sanctuary right at the end of the original Creek, Muller said. The DHCC

cluster has been receiving lots of developer attention for residential offerings now that it has a well-established

profile as a commercial real estate hot spot.

Source: Gulf News

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MIRAL ANNOUNCES PLANS TO DEVELOP

SEAWORLD ON YAS ISLAND


Miral and SeaWorld Entertainment today announced a partnership to develop SeaWorld Abu Dhabi, a first-of-its-

kind marine life themed park on Yas Island.

This next generation SeaWorld Abu Dhabi will also include the UAE's first dedicated marine life research, rescue,

rehabilitation and return centre with world-class facilities and resources for the care and conservation of local

marine life.

SeaWorld Abu Dhabi will be the first new SeaWorld without orcas, and will integrate up-close animal experiences,

mega attractions and a world-class aquarium, bringing the latest technology in visitor engagement.

"Abu Dhabi is becoming a first choice destination for regional and global travellers by combining culture, heritage

and unique leisure experiences into one compelling proposition. SeaWorld Abu Dhabi further strengthens Yas

Island’s position as a global tourism destination," said Mohamed Khalifa Al Mubarak, Chairman of Miral.

"This announcement reflects the emirate’s ambition to create a sustainable, diversified economy, with tourism as

one of its core pillars. Abu Dhabi continues to build sustainable partnerships that deliver on its strategic 2030

Vision, transforming and pioneering new destinations."

Joel Manby, President and Chief Executive Officer of SeaWorld, said, "We are excited to announce our first

international expansion and our partnership with Miral as we design a next generation SeaWorld that engages,

educates and inspires, a blueprint brought to life in Abu Dhabi. This new park, combined with a dedicated

research, rescue, rehabilitation and return facility focused on marine life care and conservation, continues

SeaWorld’s legacy of marine life rescue that spans more than 50 years. This project presents an opportunity for

collaboration and greater understanding of how species have adapted to the region’s unique marine

environment, and to inspire the next generation of visitors, conservationists and animal care experts."

SeaWorld Abu Dhabi’s research, rescue, rehabilitation and return centre on Yas Island will be the first of its kind in

the country, providing a state-of-the-art environment for local and global researchers, scientists and marine

conservationists to assist them to better understand and learn from the region’s marine life habitats and

conditions.

Planned to open ahead of the marine life themed park, the facility will provide an important resource for UAE

nationals and residents looking to develop or enhance expertise in marine life sciences and will serve as a hub for

collaboration with local and international environmental organisations and projects.

The addition of SeaWorld Abu Dhabi expands Miral’s portfolio on Yas Island, which is set to double visitor

numbers to 48 million by the year 2022. The growth plans are part of Abu Dhabi’s vision to establish the emirate

as a global tourism hub with unique attractions and world-class tourism infrastructure.

Miral’s Yas Island portfolio includes themed parks like Ferrari World Abu Dhabi, Yas Waterworld, and, opening in

2018 the recently announced Warner Bros.




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World Abu Dhabi and Clymb. It also offers a wide range of sporting and entertainment experiences that include

Yas Marina Circuit, seven hotels, year round calendar of events, a live performance and concert arena, an 18-hole

championship golf course, a marina, a beach and the increasingly popular shopping destination, Yas Mall.

Source: Emirates 24/7

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DXB TO WISH 7M PASSENGERS 'HAPPY

HOLIDAYS'


Dubai International, DXB, is full of festive cheer as it prepares to welcome some seven million passengers during

December with an exciting array of seasonal activities, promotions, prize giveaways and entertainment for

passengers at the world’s leading international hub.

"Nearly a quarter of a million passengers will be passing through the airport daily during the peak season and we

want to ensure they start enjoying their vacation as soon as they reach DXB," said Anita Mehra, Senior Vice

President of Communication and Reputation at Dubai Airports.

"We have an exciting line-up of activities to delight and entertain our passengers, which will give the airport a truly

festive atmosphere throughout December."

"With schools across the UAE closing for the holidays, mid-month, Dubai Airports is anticipating near-record

numbers in December with peak traffic anticipated on 16th, 17th, and 22nd December. As is the case during each

peak traffic season, Dubai Airports, in collaboration with airlines and other partners at DXB is taking a number of

measures to ensure passenger volumes do not affect service,'' Mehra added.


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NAKHEEL, RTA COMPLETE DH150M DEIRA

ISLANDS ACCESS BRIDGE

Thursday, 15 December, 2016

Master developer Nakheel has thanked the RTA for its assistance in overseeing the construction of a new, Dh150

million road bridge linking mainland Dubai with Deira Islands, its new, 15.3 square kilometre retail waterfront city.

Funded and constructed by Nakheel as part of its Dh1 billion infrastructure works at Deira Islands, the new bridge

is now complete and set to open on Friday, as announced by the RTA.

Nakheel Chairman Ali Rashid Lootah said: “We thank the RTA for its assistance and co-operation in supervising the

construction and completion of this vital element of Deira Islands. The bridge is a key part of the ongoing

infrastructure at the development, and we are extremely proud to have reached this milestone.”

The bridge starts at Al Khaleej Road and leads to a Deira Islands A. Currently, access is limited to construction

teams and authorised visitors.

Set to contribute significantly to the Government of Dubai’s tourism vision, Deira Islands will be a world-class hub

for tourism, leisure, retail and entertainment.

The development is expected to have around 250,000 residents and create 80,000 new jobs.

The project will add 40 km, including 21 km of beachfront, to Dubai’s coastline, and will contain hundreds of new

hotels, serviced apartments and mixed-use buildings as well as extensive retail and leisure attractions.

Nakheel itself is building 16 residential towers, five hotels, two serviced apartment complexes, the 420,000 sq

metre Deira Mall, the 5,300-outlet Night Souk and several marinas at the islands.

Stage one infrastructure works, covering two of the four islands that make up Deira Islands, was completed ahead

of time in September this year.

The work included more than a million square metres of soil improvement, 44 kilometres of sewage lines and 12

km of roads.

Stage two infrastructure works are underway.


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RTA OPENS SMART MALL IN FOUR DUBAI

METRO STATIONS


HE Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors of Roads and Transport

Authority (RTA), announced the opening of the Smart Mall in four Dubai Metro stations namely: Abu Dhabi

Commercial Bank Station, Damac Station, Dubai Internet City Station and Emirates Towers Station.

The move stems from RTA keenness and Dubai efforts to rank Dubai the smartest city in the world.

“The Smart Mall concept rolled out by RTA in collaboration with Etisalat is the first of its kind worldwide enabling

Dubai Metro commuters a smart shopping experience via an interactive, high-definition 3D digital screen

spanning nine square meters. It enables two persons to process their purchase transactions at a time,” said Al

Tayer.

“The expansion of the Smart Mall initiative follows the success of the first experience of the project, which started

with the selling of foodstuffs. More products will be added in the following phase such as clothes and electronics.

Two smart screens (kiosks) offering the same services would be in place to provide privacy to clients. In the Smart

Mall, the customer can choose from the items on show by adding them to the shopping cart. Then, the customer

can pay for items selected using a credit card, and the goods would be delivered at the time and place specified

by the customer. RTA is considering other payment options such as NOL cards or mobile phone (Etisalat

balance)," explained Al Tayer.

Salvador Anglada, Chief Business Officer at Etisalat, said, “Digital and smart technologies pave the way for future

life patterns of people in the UAE. We are proud of our excellent partnership with RTA in launching Phase II of the

Smart Mall project following the success of the initial phase. Such a success is an outcome of the huge

investments made by Etisalat in upgrading a digital environment that contributes to a positive transformation in

the daily lifestyles of individuals, and brings back a value added to users of our networks and reliable digital

services.”

“Etisalat and the RTA would continue working together to develop creative services and solutions capable of

building a sophisticated smart structure and empowering the digital future we are looking forward to. Dubai is a

city characterized by a quick tempo that is evident in the daily hectic life of people. In this regard, the Smart Mall

project fits well with the quick life trends through capitalizing on the technological advancement of Dubai city. It

enables individuals to shop on the go rather than set a time for grocery shopping. Such an exercise makes life

easier after a busy day and avails people a time to use in other more important affairs. Thanks to our long

experience in (Trolley.ae), the first online grocery shop in Dubai, we will contribute to empowering the Smart Mall

to deliver best-in-class services and provide thousands of options and products," added Salvador.


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RTA CALLS UPON PUBLIC TO OBSERVE THE

LAWS OF DUBAI WATER CANAL

BOARDWALK


The Roads and Transport Authority - Dubai (RTA) has announced guidelines & instructions relating to the Dubai

Water Canal Boardwalk, in implementation of RTA’s strategic goals: People Happiness, Safety, and Environmental

Sustainability.

Mr. Nabeel Mohammed Saleh, Director of Roads, said: “One of our priorities is to maintain the safety of visitors of

the Dubai Water Canal; one of the vital projects in Dubai. The Canal is a giant landmark that contributes to

promoting the economy, investment and tourism in Dubai and maintaining environmental safety in Dubai Creek,

which is the lifeline of commercial and maritime business of the city”.

The RTA calls upon the public to follow the instructions of the Dubai Water Canal Boardwalk in order to ensure

the safety of community members and their families. Instructions include dumping waste in designated sites,

avoiding the use of skateboards, and bicycles or motorbikes anywhere other than designated places.

Mr. Saleh reminded the public to refrain from jumping over the rail of the Boardwalk, bringing dogs and other

pets, or wearing revealing clothes. He also alerted the public not to use campfire or hot charcoal be it for

barbequing or smoking shisha. It also urged visitors not to leave their children under 12 unattended for their own

safety.

“Not abiding by the said laws will hold offenders legally accountable for their actions. The public is welcomed to

contact the RTA via the toll-free number 8009090 to make inquiries, comments or suggestions that contribute to

improving the Boardwalk in line with RTA’s strategic goals & drivers,” concluded bin Saleh.


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CAN DUBAI PROPERTY INVESTOR PENALISE

DEVELOPER FOR DELAYED OFF-PLAN

PURCHASE?


I have invested in an off-plan property in Business Bay but its delivery is delayed by about three years. Can I

penalise the developer in any way for breaching the contract? AS, Dubai

In theory, there should be no reason why you cannot file a case and hold the developer to task for not sticking to

the clauses of the Sales and Purchase agreement, essentially the first contract of the original sale. The reality,

however, is not so straightforward. I’m sure that in their defence, the developer could look at wriggling out of their

responsibility by pinning the delay on obscure clauses such as force majeure – this is a legal term for acts of God.

Notwithstanding this, taking a large developer to court could be costly and involve a great deal of time. I’m not

suggesting you should just accept this delay, I am merely explaining that unfortunately the process for justice

could be long and expensive, with no real confirmation of success at the end of it anyway. Any investor ought to

have the right to compensation for such things as delays on handover but getting justice could be a distant

reward unless you have the time and patience for the battle ahead.

We are looking to lease in Sustainable City. Which party is responsible for the Dewa and gas connection fee? Is

there a chiller fee in Sustainable City? If so, who’s responsible for this? And is the housing fee and Ejari the

landlord’s responsibility? It is written in the contract that the security deposit will be "held" by the landlord, does

this mean that it won’t be cashed or we can give an undated cheque to be "held" until necessary? JM, Dubai

Connection to any service supplier is normally the responsibility of the tenant. There are sometimes exceptions to

this but if the property is vacant, you will find that the tenant is the one that has to connect or reconnect the

services.

In the case of Sustainable City, each villa has solar panels fitted on to the roof that gather and store electricity.

This electricity gets fed back into the grid and dramatically reduces the electricity bills of each villa. My

understanding is that there is still a small charge for the chiller but the overall charges are much less than in other

conventional villa communities.

The housing fee is the responsibility of the tenant to pay and is calculated as 5 per cent of the annual rent divided

by 12 to get a monthly amount. This is then payable through the Dewa bill.

With reference to the Ejari, technically this is the responsibility of the landlord to arrange but it is the tenant who

pays for it. Because of this, it is also common for the tenant to arrange the Ejari too, as he or she will have to pay

for it anyway.

All rental or security deposits are "held" by the landlord, but this does not mean deposits are not cashed. In fact,

quite the opposite – the deposit is always cashed. This money is used to repair or replace anything that might get

damaged by the tenant or if stipulated in the contract, it is often used to repaint /clean the property at the end of




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the tenancy to ensure the property is given back in the same condition as it was first given to the tenant. If no

damage or repair is needed and the tenant pays for the repainting or cleaning on leaving the property, the

deposit is returned in full to the tenant. This last statement is often not adhered to by landlords and is the source

of many letters to me from tenants asking how to get their deposit back. Largely this is left up to trust, which is

clearly not acceptable. The law ought to be changed or clarified on this topic alone.

Mario Volpi is the chief sales officer for Kensington Exclusive Properties and has worked in the property industry

for the past 32 years in London and Dubai. The opinions expressed in this article are those of the author and they

do not reflect in any way those of the institutions to which he is affiliated. It does not constitute legal advice and is

provided for information only. Please send any questions to [email protected].

Source: The National

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mailto:[email protected]




Page 17



DAMAC AWARDS CONTRACTS WORTH

DH1.26BN IN LAST FOUR MONTHS


Dubai developer Damac awarded 15 construction and consultancy contracts worth Dh1.26 billion in the four

months between August and November, the company said on Tuesday.

Damac said this included main works contracts for villas and apartments at several clusters at its 42-million-

square foot Akoya golf course development.

It also included main works contracts for villas, roads and infrastructure work, piling and consultancy agreements

at its 55 million square feet Akoya Oxygen golf course project.

Damac said that it had appointed 8 main contractors for the construction of 5,676 villas at the scheme and it had

awarded golf course construction packages. The contractors included Ghantoot Gulf Contracting, Al Arif

Contracting and National Piling.

And Damac said that it had also awarded contracts for enabling works and shoring works at its 4-million-square

foot Aykon City development next to the Dubai Canal and Sheikh Zayed Road.

In November Damac announced it had awarded China State Construction Engineering Corporation a Dh554

million contract to build part of its second Paramount Hotel project in Dubai.

Damac said that the new contracts brought the total value of contracts awarded so far in 2016 in London and

Dubai to Dh6.51bn.

The news comes despite falling profits at Damac as house prices for super luxury homes in Dubai continue to

slide and brokers report most demand in the lower end of the market.

In November Damac reported an 11.7 per cent fall in third-quarter profits, as the developer’s chairman

acknowledged that this year would be remembered as "the year of market turmoil and macroeconomic

pressures".


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ABU DHABI REINSTATES 5% RENT CAP


Residential rent increases in Abu Dhabi were again capped at 5 per cent a year on Tuesday, three years after the

rent cap was scrapped.

The announcement by the Department of Municipal Affairs and Transport took property brokers in the city by

surprise: in the current market they are more used to downward pressure on rents than on capping increases.

"Anything that gives tenants more protection has to be a good thing," said Edward Carnegy, the head of Cluttons’

Abu Dhabi office. "I’m not sure whether there is an actual need for it now or for the next 12 months because rents

are falling."

Average residential rents in Abu Dhabi fell by 9.4 per cent in the year to the end of September and are expected

to fall even further in the coming months as job losses and cuts in public expenditure continue to reduce

demand.

Office rents also fell, with prime commercial space in the city down 5 per cent and secondary office rents down

8.3 per cent.

"It is important that rents in Abu Dhabi do not escalate," said David Dudley, head of JLL’s Abu Dhabi office.

"However, rents in Abu Dhabi are currently falling and we are not at a phase in the cycle where we expect to need

a rent cap for some time."

The Abu Dhabi rent cap was first introduced in 2006 in an attempt to stop rents from spiralling out of control

because of an expanding population and very little residential construction.

The cap was originally set at 7 per cent a year, and cut to 5 per cent in 2010. In practice it became academic,

because rents in the city began to fall as new homes came on the market in areas such as Reem Island, Raha

Beach and Al Reef.

In November 2013, just as rents for new tenants were once again rising quickly, the Abu Dhabi Executive Council

suspended the cap.

The municipality had planned to introduce a Dubai-style rent index, which would have divided the city into 10 to

12 zones and set a guide rent for each. However, work on this was abandoned because, unlike in Dubai, individual

residential areas in Abu Dhabi contain too varied a mix of housing for an index to be practicable.

Rent controls around the world have been the subject of heated debate.

Critics complain that they redistribute wealth from landlords to tenants and discourage property owners from

offering homes for rent, reducing the number on the market. Supporters say rent controls help people on lower

incomes to deal with the cost of living and improve cities’ competitiveness as destinations for price-sensitive

migrant workers.

"A rental cap isn’t needed in Abu Dhabi at the moment," said Ben Crompton, the managing director of Abu Dhabi

estate agent Crompton Partners.




Page 19



"Rents are not going up anywhere in Abu Dhabi. If anything they are falling. I also think a rent cap is not a good

idea anyway. It means people are discouraged from moving home and it penalises new arrivals."


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Page 20



KERZNER TO BUILD ATLANTIS HOTEL IN

HAWAII


The Dubai-based resort operator and developer Kerzner International Holdings expects to manage its first

Atlantis property in the United States in Hawaii.

It signed a deal with landowner and community developer China Oceanwide and its subsidiary Oceanwide Resort

Paradise HI to develop the Atlantis Ko Olina on the island of O’ahu in Hawaii. The property will have 800 rooms

and 524 residences.

Kerzner was not available for comment. Atlantis has its flagship property in Dubai and expects to open its second

one in China in Sanya Hainan near South China Sea next year. Kerzner also operates The Royal Atlantis Resort and

Residences in Dubai.

The new hotel will overlook the Honu and Kohola Lagoons, and will include a water park and The Lost Chambers

Aquarium, among other attractions.

The project will be located next to Aulani, a Disney Resort. The area also features Four Seasons Resort O’ahu and

Marriott’s Ko Olina Beach Club.

In 2014, Investment Corporation of Dubai bought about 46 per cent of Kerzner for an undisclosed sum. Istithmar

World, a subsidiary of Dubai World, owns another 25 per cent. Its owners also include the Los Angeles investment

firm Colony Capital and Goldman Sachs Group.


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Page 21



MORTGAGE COSTS WILL RISE, BUT NOT

IMMEDIATELY


Mortgage costs in the UAE will increase after the US Fed’s rate rise and are forecast for further rises next year. But

that is unlikley to deter a recovery next year in property prices, particularly in Dubai.

The US Federal Open Market Committee decision to raise rates for the the second time in a decade sent the US

dollar – to which the UAE dirham is pegged – to a 14-year high against the euro.

With the UAE Central Bank historically mirroring US Fed policy, the move makes a rate rise for UAE banks a near

certainty.

"The 0.25 per cent hike in the US may not force UAE banks to immediately pass on the costs in their mortgage

exposures. But there will soon come a tipping point and that lenders need to be aware of," said Jo Phillips, the

general manager of the Holborn Assets’ mortgage division.

"A quarter of a percentage point rise is unlikely to make a big impact in monthly payments. However, if the Fed

keeps raising rates next year, then the repayments will make a bigger impact."

Mortgage brokers estimate that for a modest mortgage of Dh1 million paying the current average rate of 3.25 per

cent, monthly capital repayments will increase by Dh133 a month to Dh5,006 from Dh4,873.

With further rate hikes slated for next year, monthly payments could increase more significantly.

"Banks have become very competitive with fixed rates in the last couple of years, the average fixed rate is for two

years and is sometimes less expensive than the variable rates on offer," she said.

Meanwhile, property stocks on the main Dubai bourse were hit yesterday as investors worried that the interest

rate hike would affect developers such as Emaar Properties and Damac.

"We are likely to see this kind of knee-jerk reaction for a couple of days, but in the medium term we are positive

about stocks such as Emaar and Damac," said Sanyalak Manibhandu, the head of research at NBAD Securities.

"This rate hike was widely expected and we expect Dubai property to benefit next year from an increase in

infrastructure spending ahead of the Expo."

Property brokers too said that the rate decision was unlikely to affect their predictions that house prices in Dubai

would start to rise by the end of next year.

"The recovery in the UAE’s property markets is very much hinged on the looming World Expo and the urge in

infrastructure spending associated with the event," said Faisal Durrani, the head of research at property broker

Cluttons. "While higher base rates may pose some challenges for mortgaged households, it is unlikely to impact

the fundamental turn-around in residential requirement levels, particularly in Dubai, as we race towards the 2020

mega event."

Property brokers expect house prices and rents to rise at various points next year as the emirate’s economy

recovers and construction jobs are created to build Expo 2020 infrastructure.




Page 22



"An interest rate hike was already priced into our assumptions. Rises in interest rates are never a good thing for

property markets and the strong dollar will be a headwind for the recovery of the UAE property market," said

Craig Plumb, the head of research for property broker JLL’s Dubai office. "However, the fact that the Fed has been

able to raise interest rates shows that the economy is faring better and we still expect Dubai property prices to

end next year higher than they started."


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Page 23



INFRASTRUCTURE WORK PAVES WAY FOR

DH3BN MIRDIF HILLS PROJECT


Dubai Investments’ decision to push ahead with its delayed Dh3 billion Mirdif Hills project was taken following a

series of infrastructure investments made by Dubai Municipality, according to chief executive Khalid Bin Kalban.

The project containing a total of 1,400 apartments in three clusters, a 230-bed hospital, a hotel and 52 retail

outlets, has been on Dubai Investments’ drawing board for several years.

It is on land that was initially cleared for development back in 2004.

"We believe that this is the right time to bring forward this project," Mr. Bin Kalban told The National. "Especially

now that we know what the government plan is to build roads around the project with regards to the connectivity

of the site to the major highways."

He added that commitments have also been made to bring forward several attractions to the nearby area,

including cycling tracks, the Al Thuraya Astronomy Centre and the Dubai Crocodile Park.

"All of that the government has now confirmed is happening around this site," he said.

An initial 50 units went on sale at the project last weekend, which Mr. Bin Kalban said could be extended to 100

during the first phase launch to meet demand.

Most of the preparation works for the first phase, containing 1,054 of the 1,400 homes planned, has already been

completed, with basements excavated and main contractor Engineering Contracting Company already mobilised

on site.

The contract to build the homes is due for completion by the end of 2018.

Mirdif Hills will be a mix of studios, one-, two- and three-bed apartments on a 3.9 million sqft site in Mirdif close to

Mushrif Park.

The average selling price per unit is about Dh1, 260 per sqft, but Dubai Investments is offering a payment plan

with half of the money being paid during construction and the remainder on completion.

The firm has said it is confident of selling the units as they are being built on a freehold plot – few of which remain

in the Mirdif area.

Myles Bush, the chief executive of Dubai-based PH Real Estate, said: "Across the last five years, we’ve seen Mirdif

go from strength to strength as a community. The infrastructure has improved, the retail has improved and the

opportunities within the real estate market have improved. We think the new development is needed and have

no doubt it will be a success."


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Page 24



FALLING HOTEL RATES LIKELY NEXT YEAR

AS DOLLAR STRENGTHENS AND

COMPETITION INCREASES


Hotels in the UAE will brace themselves for further drops in their room rates next year due to the stronger US

dollar, analysts said yesterday.

A steady stream of new hotels across the mid-market, luxury segments and holiday homes, coupled with a weak

business climate on the back of lower oil prices, have led hotels to slash room rates this year across the UAE. In

Dubai, they have fallen by 10.5 per cent in the first 10 months of this year, compared with same period last year,

according to the consultancy JLL. In Abu Dhabi, the average rate decline was 9.9 per cent.

Room rates are expected to plunge next year, according to hotel analysts.

The British pound fell yesterday against the dollar and the euro plummeted in afternoon trading to a 14-year low

against the greenback. The UK and the Europe as a whole are some of the major source markets for UAE hotels.

"In a market where there is considerable competition due to additions to the hotel inventory, coupled with poor

financial performance across most of the UAE’s source markets, it is unlikely that demand markets would

stomach this apparent increase in cost and therefore hotels and other suppliers would have to absorb this

increase in dollar value," said John Podaras, a partner at the hospitality consultancy Hotel Development Resources

in Dubai.

To remain competitive, hoteliers need to target different, high-volume segments that would imply lower

wholesaler rates and packaging items such as breakfast, airport transfers and possibly excursions, he said.

"In general the strategy for 2017 will have to be cost-led in the face of reduced room rates, by increasing efficiency

to achieve reduction in costs and maintain profitability," Mr. Podaras said.

Emerging Asian markets are expected to be worst-hit with a stronger US dollar.

As long as Dubai’s hotels achieve a healthy revenue per available room and bottom lines, the hotel investment

landscape is expected to remain encouraging despite a stronger dollar, said Gaurav Shivpuri, the head of real

estate investment transactions at JLL in Middle East and North Africa.


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Page 25



ABU DHABI DEVELOPER COMPLETES

‘PHASE THREE’ OF BLOOM GARDENS

PROJECT NEAR KHALIFA PARK

Sunday, 11 December, 2016

Bloom Properties has completed the third phase of its Bloom Gardens development near Khalifa Park in Abu

Dhabi.

Bloom said on Sunday that it had completed construction work on the 147 villas and town houses ahead of a

scheduled handover in the first three months of next year.

Bloom, part of the Abu Dhabi conglomerate National Holdings, said the additional three-bedroom town houses,

semi-detached three-bedroom villas, as well as four- and five-bedroom detached villas, which are only available to

Emiratis, would bring "critical mass" to its Bloom Gardens development.

A first phase of 123 villas at the project, which is off Salam Street close to the Sheikh Zayed Bridge, was initially

launched in 2008 while a second phase of 55 more was completed at the end of last year. The development also

includes Bloom’s Brighton College school. A fourth phase of the project is planned as well as a community centre,

a nursery and a polyclinic.

According to Propertyfinder, three-bedroom town houses at the project are being marketed for between Dh2.9

million and Dh3.5m. Bloom said it was experiencing "strong demand from home buyers and investors" in a

statement.

Last week, Cluttons reported that economic slowdown and falls in the oil price were forcing house prices in Abu

Dhabi lower. "The top end of the villa market has borne the brunt of a diminishing rate of creation of senior level

positions, while housing allowances have also continued to slip across the board," said Edward Carnegy, the head

of the Cluttons Abu Dhabi office.

Abu Dhabi’s largest listed developer, Aldar Properties, reported last week it had opened sales of off plan villas at

its West Yas development to all nationalities after marketing it last year exclusively to Emiratis.


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Page 26



DUBAI PLANS NEW 'STAR-RATINGS'

VERSION OF RENT INDEX IN 2018

Monday, 12 December, 2016

Dubai Land Department (DLD) is likely to release the new version of the rent index after the completion of the

building classification survey, a senior government official told Arabian Business.

Under the classification survey, each building in Dubai’s non-freehold and freehold communities will be given a

star rating depending on its location, amenities and sustainability factors.

Landlords in buildings with higher ratings can charge higher rents than neighbouring buildings. The current rent

index does not take into consideration any such factors, giving a general price band for all the properties.

“The existing rent index will be revamped only after the building classification survey is completed next year,”

DLD, deputy chief executive officer, rental affairs, Mohammed Ahmed Yahya.

Mohamad Khodr Al Dah, senior director, DLD technical affairs department, confirmed that the survey will finished

by end of next year.

“We have completed 25 percent of the survey [nearly 250,000 units] and we expect to complete the entire survey

by end of 2017,” he said, adding the estimated residential units across the emirate will be close to 1 million.

While the rent was updated three times a year since 2009, it is revised annually from 2015 with the aim to

stabilise prices.

“We are not running a stock market, and so we don’t want to change it more than once a year. Markets will go up

and down, but updating it annually helps us to stabilise the market,” he said.

Moreover, the DLD will be holding awareness campaigns next year so ensure tenants and landlords know their

rights under the law. The DLD will highlight existing clauses, such as the landlord does not have the right to

increase rent if s/he has not given 90-day notice to the tenant.

“There are owners and tenants who have no idea what their rights are. So, next year we will launch campaigns to

help them understand their rights and duties under the law,” Yahya said.

Source: Arabian Business

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Page 27



EMAAR UNIT LAUNCHES NEW RESIDENTIAL

PROJECT IN JEDDAH GATE

Saturday, 17 December, 2016

Emaar Middle East announced on Wednesday that it will start to hand over its Emaar Square offices in Jeddah

Gate, Saudi Arabia to investors and business owners this month.

With the final touches to the dedicated office precinct being completed, Emaar Middle East said it has also

launched a third luxury residential project in Jeddah Gate under its Emaar Residences brand of homes.

Emaar Residences will be set in three towers, 17 to 21 storeys high, offering a total of 283 1 to 4-bedroom

apartments and penthouses.

Other amenities include children’s playground, outdoor swimming pools for men, a spa for women with fully-

equipped gym, aerobics area and other amenities. There is also a male’s fitness centre and a multipurpose hall for

social occasions.

Its first residential project – Abraj Al Hilal 1 – has been fully handed over, the developer said.

A spokesperson of Emaar Middle East said: “The handover of Emaar Square offices from this month, and the

launch of the third residential project prove our commitment to deliver and create sustained value for our

investors.

"With the growth in demand for homes and offices in Jeddah, our projects are ideally suited for homeowners and

investors for its exceptional designs, luxury services and amenities and the high quality of construction.”

Emaar Square comprises three centrally commercial buildings overlooking a central plaza with water features. A

number of luxury retail outlets and a diversity of F&B attractions are situated by the plaza, while an executive

office on the top of each building offers business centre amenities.

Spread over a total area of 413,000 sq metres, when completed, Jeddah Gate will have 2,009 residential units,

230,000 sqm of office space, and 68,000 sqm of retail space. Green walkways link the entire neighbourhood with

public plazas surrounded by retail outlets, restaurants and cafes.

Emaar also said it will develop hospitality projects in Saudi Arabia in the near future that will be managed by

Emaar’s Vida Hotels and Residences brand.

Emaar Middle East is a subsidiary of Emaar Properties, which has developed Burj Khalifa, The Dubai Mall and the

ongoing Dubai Creek Harbour.

Emaar Middle East’s portfolio includes Al Khobar Lakes, and the Emaar Residences at the Makkah Royal Clock

Tower.

Source: Arabian Business

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Page 28



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