news brief 39 - asteco property management · dubai housing squeeze pushes middle-income expats out...
TRANSCRIPT
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 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 39 SUNDAY 04 October 2015
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 2
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
REAL ESTATE NEWS DUBAI
DUBAI HOLDING’S MAIN TRADING ARM POSTS 24% RISE IN FIRST-HALF NET PROFIT
ARAB INVESTORS AND EXPATS MAY SEE RED OVER JEREMY CORBYN’S UK PROPERTY PLANS
A HOLLYWOOD MANSION IN THE DUBAI DESERT BUSY PERIOD AHEAD FOR DUBAI WORLD TRADE CENTRE TO BOOST
HOTELS DUBAI PROPERTY BROKERS REVISE FORECASTS AS HOUSE PRICE
SLIDE DEEPENS DUBAI’S JRD GROUP TO MOVE RENT LISTINGS TO JUSTPROPERTY BRAND
IS THIS THE WORLD’S MOST EXPENSIVE AND LUXURIOUS STUDENT ACCOMMODATION?
DUBAI NAMED NUMBER ONE SHOPPING DESTINATION FOR MUSLIM TRAVELLERS
OVERNIGHT GUESTS IN DUBAI HOTELS RISE 9.3% DUBAI HOUSING SQUEEZE PUSHES MIDDLE-INCOME EXPATS OUT TO
THE SUBURBS PROPERTY BROKERS CBRE AND JLL TO MARKET DUBAI SOUTH PROJECT
DUPLICATE LISTINGS 'HEADACHE' FOR UAE REAL ESTATE MARKET CHEAPEST DUBAI SUBURB TO RENT STUDIO, ONE-BED APARTMENT
ABU DHABI
NAKHEEL AWARDS DH819M PALM TOWER CONTRACT TO TWO ABU DHABI BUILDERS
ABU DHABI’S TALLEST TOWER NAMED ONE OF WORLD’S BEST NEW
SKYSCRAPERS ABU DHABI INVESTORS EXPAND IN MONTENEGRO AS CAPITAL PLAZA
OPENS
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 3
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
DUPLICATE LISTINGS 'HEADACHE' FOR
UAE REAL ESTATE MARKET
FRIDAY 25 SEPTEMBER 2015
Though Dubai’s Real Estate Regulatory Agency has launched eMart to stop duplication of property
listings, a software technology expert claims duplicate listings within the UAE’s online real estate market
are costing the industry at least Dh1 billion per year.
“Duplicate listings are a major headache in our industry, and evidence suggests that the Dh1 billion our
team has calculated is likely a conservative figure,” Daniel Hart, CEO, Masterkey, said at the recent Real
Estate Brokers programme in the Cityscape Global Conference.
The figure was calculated taking into consideration the amount of time, overheads and additional
marketing expenses that companies incur when duplicate listings are published.
Figures were based on publicly available data published by the Dubai Land Department and conservative
estimates obtained from a wide array of brokers regarding the amount of duplication involved.
“As the UAE moves towards a more regulated market, our multi listing system will bring agents together
instead of competing against one another,” said Hart.
The Dubai Land Department has been working to stop the menace of 'ghost' listing since 2012 when it
came out with Simsari, a multi listing services system. However, its latest avatar is eMart, an online
portal designed for listing sale and rental units.
In September 2014, Emirates 24|7 reported Marwan bin Ghalita, CEO, Rera saying, “A lot of brokers
came to us, asking not to implement the MLS. We are working the system now. All the listings on eMart
have validated details of the properties and not like online portals where the agent’s fill in the details.”
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 4
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
ABU DHABI INVESTORS EXPAND IN
MONTENEGRO AS CAPITAL PLAZA
OPENS
SUNDAY 27 SEPTEMBER 2015
Abu Dhabi investors have completed the largest new mixed-used real estate project in Montenegro as
they expand their footprint in eastern Europe.
Abu Dhabi Financial Group (ADFG) and Capital Investment (CI), have officially opened The Capital Plaza,
in the heart of Podgorica, Montenegro’s capital city.
It comprises 1 million square feet of prime retail, business, hospitality and residential space.
ADFG made headlines last year with two major high-profile London property purchases – the
Metropolitan Police headquarters New Scotland Yard and a block of flats next to Queen Elizabeth’s home
Buckingham Palace.
The company, which was founded in 2011 to snap up assets in the wake of the global financial crisis and
which is owned by a number of institutions, family offices and other investors, welcomed guests
including Milo Djukanovic, the prime minister of Montenegro.
ADFG, with partner CI, announced that it has selected H Hotel to operate the scheme’s 139- room six-
storey hotel.
The company controls a land bank of some 600,000 square metres in Serbia, Bulgaria and Montenegro
and is delivering projects worth €500 million (Dh2.05 billion) in the next five years in eastern Europe.
These include the development of a site on the Black Sea in Bulgaria and projects in Montenegro, where
it wants to develop housing projects along the coast and acquire food and beverage franchises.
The company is one of a number of Abu Dhab-based development firms in recent years attracted to
eastern Europe, where costs are cheaper than in the neighbouring European Union and high-level
government agreements are being negotiated.
In April, Eagle Hills, an Abu Dhabi-based company that has the Emaar chairman Mohamed Alabbar as a
board member, signed a deal with the Serbian government to redevelop 1.8 million sq metres of central
Belgrade.
In her address to guests at the Capital Plaza opening, Hafsa Al Ulama, UAE ambassador to Montenegro
said that The Capital Plaza was a “symbol of hard work, dedication and commitment of the UAE being
part of Montenegro’s development”.
She added: “The UAE through its investors and partners would like to send a message of friendship to
Montenegro and to reiterate its commitment to strengthening its relations with this beautiful country.”
Abu Dhabi Financial Group operates through six units which include Abu Dhabi Capital Management,
Spadille and Qannas Investments.
The company, which has interests in real estate, asset management and financial services such as
brokerage, also plans to make more acquisitions in financial services and expand its debt portfolio.
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 5
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
Last month Integrated Capital, the capital markets unit of ADFG, lifted its stake in Gulf Navigation to
5.19 per cent by buying more than 28.61 million shares. ADFG said it planned to hold turnaround talks
with the troubled Dubai-based shipping company.
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 6
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
PROPERTY BROKERS CBRE AND JLL TO
MARKET DUBAI SOUTH PROJECT
SUNDAY 27 SEPTEMBER 2015
Two of Dubai’s biggest real estate brokers are being brought on board a massive campaign to market
the newly renamed Dubai South project.
CBRE and JLL said yesterday that they had signed an agreement to lease and sell office space at the
business parks on the master planned city formerly known as Dubai World Central, which occupies 145
square kilometres.
Under the terms of the deal, the pair will start marketing 2 million square feet of office space spread
across 11 buildings on the mixed-use project near the Dubai Expo site and the new Al Maktoum
International Airport.
According to local brokers, rents for warehouses in the area range between Dh30 and Dh40 per sq ft.
The project is being built by Dubai’s government through the newly rebranded master developer Dubai
South as part of the emirate’s plans to ramp up development ahead of Expo 2020.
It hopes that the extra marketing push will attract foreign investment to its business park free zone.
“The Business Park Free Zone forms an integral part of Dubai South, allowing companies based here to
enjoy the distinct advantages of the 145 sq kilometre master planned city. including proximity to the Al
Maktoum International Airport, the Jebel Ali Port and to the venue of the World Expo 2020,” said Paolo
Serra, the vice president of the Business Park at Dubai South.
“Our alliance with JLL and CBRE will allow us to extend these unique offerings and turnkey solutions to
businesses across the world. Ultimately, our aim is to act as a catalyst for the growth of these
businesses, whether they are newly setting up base here or looking to expand their footprint in the
region.”
Last month, Sheikh Ahmed bin Saeed Al Maktoum, the chairman of Dubai Aviation City Corporation,
announced Dubai World Central’s change of name following a decree from Sheikh Mohammed bin
Rashid, Vice President of the UAE and Ruler of Dubai.
Dubai World Central was launched in 2006 as the world’s first purpose-built “aerotropolis”, with Al
Maktoum International Airport at its core.
When completed, the airport will have five runways and a capacity of 160 million passengers and 12
million tonnes of cargo a year.
The passenger terminal is expected to take over operations from the city’s main Dubai International
Airport.
At the Cityscape Global property exhibition in Dubai earlier this month, Dubai South said it was planning
to build a Dh25 billion ¬middle-income residential project, which would be laid out as a cluster of
villages.
The first village, which will encompass 6,000 homes such as apartments, villas and town houses, will be
completed in 2019.
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 7
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 8
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
DUBAI HOUSING SQUEEZE PUSHES
MIDDLE-INCOME EXPATS OUT TO THE
SUBURBS
SUNDAY 27 SEPTEMBER 2015
While Dubai continues to pump out sumptuous new apartment blocks, for a rising number of expatriates
the city no longer offers the luxury lifestyle that lured many foreigners to the Gulf.
A shortage of affordable homes and a reduction in overseas allowances since the financial crisis are
pushing foreign staff on middle incomes out to less glamorous areas of the city far from the office, or to
neighbouring Sharjah.
Investment bankers, lawyers and top managers at multinationals may enjoy seven–figure salaries but
other expats – from architects, accountants and IT managers to legal secretaries and HR executives –
are often on household incomes of Dh10,000 to Dh30,000 a month, says property consultants JLL.
They can afford annual rents of Dh72,000, says JLL, or could buy a property for around Dh790,000 – a
fraction of prices in expatriate neighbourhoods Dubai Marina and Dubai Downtown, for example, where
two–bedroom apartments sell for up to Dh4 million.
“There’s a squeeze on middle–income earners,” said Faisal Durrani, head of research at property
consultancy Cluttons.
“Affordability issues are likely to become more acute.”
The emirate’s real estate sector has been among the most volatile globally over the past decade as it
turned from boom to bust to boom again. Property prices, and rents, have steadied in the past year but
are still 50 per cent higher than two years ago, according to estate agent Cluttons, and are expected to
be on the rise again by 2017 as Dubai prepares to host the Expo 2020.
The only districts offering affordable accommodation for many middle–income earners are run–down
areas near Dubai’s creek and parts of the city’s outskirts, such as International City and Dubai
Outsource Zone.
But as expats move out of more central areas, previously cheaper suburbs have experienced the biggest
rental increases.
Randy, a Filipino fitness instructor, and his British wife Layla moved to Remraam – one such area, about
50 kilometres from Dubai’s business district – in May 2013.
“We used to live in Business Bay, which was only a 10–minute drive from most of my clients,” said
Randy, 37.
“We rented a one–bedroom apartment, but it got so expensive we moved here – it was the only nice
place we found where we could afford a two–bedroom place. We’re now 30 minutes’ drive from
anything.”
The couple, who have a 13–month–old son Andre, initially paid Dh55,000 in annual rent, but this has
risen to Dh63,000, limited by rent caps.
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 9
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
But caps only apply if a tenant renews a lease and two–bedroom apartments in Remraam now advertise
for Dh80,000–Dh100,000 a year.
Land is traded like a commodity in Dubai, inflating prices. This has pushed developers to focus on high–
margin luxury projects – middle–range apartment blocks are difficult to make a profit on without
subsidised land.
This year developers have launched new projects totalling 19,500 homes, of which JLL estimates only 22
per cent would meet its definition of affordable for the middle–income bracket.
About 70,000 new homes in total are due to be completed in Dubai by the end of 2018, more than
double the number in 2013–14, but below a 2007–2008 peak of 90,000, CBRE estimates.
“These units are not being completed at such a quick rate so we see a major negative impact on the
rental market,” said Mat Green, research head at CBRE Middle East.
Many employers in the emirate have done away with housing allowances and slashed overall
remuneration in the wake of the 2008 financial crisis but may have to reevaluate those packages if they
want to retain the same calibre of talent.
“The need for affordable housing will become more pronounced,” said Dana Salbak, JLL research
manager. “Employers will have to increase wages or housing allowances to attract and retain staff.”
Some residents have moved to conservative neighbour Sharjah. Property prices are less than half those
in Dubai, Cluttons estimates, and late last year Sharjah allowed foreign UAE residents to buy property in
some developments.
However, it is more than an hour’s drive away in rush hour from Dubai and lacks the dining, shopping
and nightlife that its neighbour offers.
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 10
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
OVERNIGHT GUESTS IN DUBAI HOTELS
RISE 9.3%
MONDAY 28 SEPTEMBER 2015
Dubai attracted 8.2 million international overnight visitors during the first seven months of the year
even as hotel occupancy dipped and the global economy slowed down.
That represents an increase of 9.3 per cent in visitor numbers over the same period last year, said
Issam Kazim, the chief executive of Dubai’s Department for Tourism and Commerce Marketing.
The top source markets included India, Saudi Arabia, Oman, Germany, Iran and China.
Hoteliers continued to add new rooms to accommodate rising visitor numbers. Between January and
July, 11 properties opened in Dubai, adding 2,600 rooms.
Among them were the 186-room Flora Al Barsha Hotel and 126-room Hyatt Place Dubai at Baniyas
Square. At the end of July, there were 95,000 hotel and hotel apartment rooms in Dubai.
“This increase has inevitably triggered talks of oversupply, and while we at Dubai Tourism do not share
this view, it does highlight an important view to strike a balance between supply and demand, ensuring
that Dubai dictates a high occupancy rate [and] room rates that are neither too high nor too low,” he
said.
“We are continuously working with all private and public sector departments to ensure Dubai’s inventory
increases proportionate to our tourism needs.”
Despite the uncertainties of the global economy, Dubai’s key performance indicators are relatively
stable, said Mr Kazim.
Last month, non-oil private sector firms in the UAE placed new orders thanks to strong domestic
demands, according to the Emirates NBD UAE Purchasing Managers’ Index.
However, exports slowed and inflation rose.
During the first seven months of the year, hotel occupancy in Dubai was 77 per cent with the average
daily room rate at Dh585. A key measure of hotel profitability, revenue per available room (revpar), was
Dh450. The comparative figures for last year were unavailable from the tourism department.
“These are among the highest rates in the world, far outperforming other metro markets,” Mr Kazim
said.
The hotel occupancy rate has dipped 0.9 per cent year-to-date until September 19 compared to the
same period last year, according to STR Global. The average daily rate has declined 8.1 per cent as
supply rose 6.3 per cent compared to demand at 5.3 per cent.
As the local market corrects the heavy reliance on luxury properties with the construction of more
budget and midscale hotels, the average revpar in Dubai has declined.
The uncertainty in the global economy and currency weakness among key source markets such as
Russia and the euro zone has had an impact on the tourism market.
Mr Kazim was talking at the three-day Hotel Show in Dubai. Demand is expected to outstrip supply of
hotel rooms in Dubai in the run-up to 2020, pulling down occupancy rates from around 80 per cent,
according to analysts.
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 11
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
Hotel operators have taken a defensive position, maintaining the occupancy rates broadly but at the cost
of average daily rates, said Martin Cooper, an analyst with the consultancy Deloitte. “Occupancies
around 73 to 79 per cent [would] be the new normal,” he said.
High land prices, especially in the Downtown and Business Bay areas and a lack of leisure attractions are
among the challenges that hotel developers and operators face in Dubai. Once considered a shopping
destination, Dubai has become more expensive to shop for many consumer goods because of the
strength of the dollar, according to Philip Shepherd, an analyst with PwC.
“Attractions are limited to desert safaris, beaches and some waterparks, currently what we are missing
are attractions,” he said. “I don’t think Dubai can do it on its own, the emirates need to do it together.”
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 12
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
DUBAI NAMED NUMBER ONE SHOPPING
DESTINATION FOR MUSLIM
TRAVELLERS
TUESDAY 29 SEPTEMBER 2015
Dubai is the number one shopping destination for Muslim travellers, according to a new study.
The Muslim Travel Shopping Index 2015, which was complied by MasterCard and the halal travel
researcher CrescentRating, also included Sharjah in 12th place. Dubai was followed by Kuala Lumpur in
second place.
The study was based on the performance of 40 main international shopping destinations against criteria
including a city’s suitability as a shopping destination, its Muslim-friendly services and facilities, and its
ease of travel and family friendliness.
“Earlier this year, Dubai was ranked among the top five most popular destination cities in the world in
MasterCard’s 2015 Global Destination Cities Index and has consistently advanced its position since the
annual index first launched in 2012,” said Raghu Malhotra, MasterCard’s division president, Middle East
and North Africa. “This further underlines the city’s dynamism and enduring positive reputation among
international travellers.”
The State of The Global Islamic Economy report developed by Dubai Islamic Economy Development
Centre yesterday ranked the UAE second in its top Islamic economies in the world.
It received strong scores in halal food, Islamic finance and travel.
“Several initiatives under-taken by the Government to promote and develop the Islamic economy
combined with one of the safest destinations in the Middle East makes the UAE a prominent hub in the
Islamic economy,” the report said.
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 13
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
IS THIS THE WORLD’S MOST
EXPENSIVE AND LUXURIOUS STUDENT
ACCOMMODATION?
TUESDAY 29 SEPTEMBER 2015
Most students, certainly in the United Kingdom, are happy to reduce their living standards a notch or
two as long as they enjoy their time at university and gain the degree that they have spent years
studying for.
Halls of residence often consist of cramped single rooms containing the very basics - a bed, desk, sink,
cupboard, and if you’re lucky a shelf or two.
Shared kitchens resemble a crumb-fest, with toast crusts strewn across grubby tables and washing up
piled high in the sink like a game of Jenga.
But student life in London doesn’t have to be like this - if you’re willing to pay £21,000 (Dh116,980) a
month.
Five newly refurbished apartments and a three-bedroom triplex in Mayfair’s Fountain House are being
marketed by the property agent Wetherell as “London’s ultimate student pads”. The triplex is thought to
be the city’s most expensive.
“Some wealthy overseas students in Mayfair from the Middle East, North America, Asia and Africa can
afford to pay over £2,000 per week for luxurious apartments in Mayfair,” it said.
“These students can rival City workers and advertising directors (the other obvious tenants for these
luxury pads) and have generous six-figure allowances which enable them to shop on Bond Street, eat at
Scotts on Mount Street and enjoy nightlife in elite venues such as Annabels, 5 Hertford Street and
Whiskey Mist.”
The two-bedroom apartments are available from £2,250 a month, while the triplex is £5,250 per week.
One of the apartments has already been snapped up by an American fashion student, according to
Wetherell.
Fountain House is a nine-storey building, originally built in 1935, and takes its name from the adjacent
Joy of Life fountain in Hyde Park.
The apartments have been developed by Criterion Capital and the lush interiors come from Alexander
James Interior Design.
The two bedroom apartments have woodstrip flooring and mood lighting, integrated Miele appliances in
the kitchen, while master bedrooms have deep carpets so students will have to remember to take their
shoes off.
Figures from the Government’s Higher Education Statistics Agency (HESA) reveal that there are 107,000
international students studying in London, 40,000 from continental Europe and 67,000 from the rest of
the world.
The largest group of international students come from China (18 per cent), followed by students from
the United States (9 per cent).
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 14
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 15
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
DUBAI’S JRD GROUP TO MOVE RENT
LISTINGS TO JUSTPROPERTY BRAND
TUESDAY 29 SEPTEMBER 2015
The online property portal owner JRD Group is to move its rental listings from its Justrentals.com
website to sister site Justproperty.com as part of a rebranding.
The company, which recently gained backing from UAE-based iMENA Group, has also launched Arabic
language listings for its site as it plans to push beyond its UAE base into other regional markets. It
opened a site for listings in Qatar last month and is also planning to launch sites targeting Saudi Arabia’s
main cities of Riyadh, Jeddah and Dammam by the end of the year.
The company said that no decision had been taken yet on whether to phase out its Justrentals brand.
JRD Group was co-founded by Siddharth Singh and Alex Nicholas as JustRentalsDubai.com in 2008 and
was initially aimed at the holiday lettings market, but its remit was broadened to cover all rentals, and
then in 2010 it was extended to the sales market with the launch of Justproperty.com.
“Those were still tenuous times in the world of Dubai real estate,” said Mr Nicholas in a blog post. “The
city, like the rest of the region, and the world at large, was slowly emerging from the effects of the
global financial crisis.
“Despite the overwhelming uncertainty, both of us believed that an exciting new beginning for the
property sector was just around the corner. And that beginning would be online.”
The firm now has about 60,000 properties for sale listed and more than 40,000 rental properties.
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 16
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
DUBAI PROPERTY BROKERS REVISE
FORECASTS AS HOUSE PRICE SLIDE
DEEPENS
WEDNESDAY 30 SEPTEMBER 2015
House prices in Dubai fell by nearly 10 per cent on an annual basis in August, prompting brokers to
revise their full year forecasts.
According to the property data company Reidin, this was split between apartment prices, which on
average fell 10.4 per cent over the year, and villa prices which dipped 8 per cent over the same period.
Average house values in Dubai have been sinking since the start of the year, when the property broker
JLL predicted that prices would fall by about a tenth.
Since then the broker has revised its forecast for the full year, expecting average house price falls of
around 15 per cent for 2015.
“The volume of sales has fallen by more than we expected,” said Craig Plumb, the head of research in
JLL’s Dubai office. “There is still no sign of a pickup in activity in the market place and so the falls have
been more than we anticipated.”
He added that he expected prices to continue to fall next year.
At the start of the year the ratings agency Standard & Poor’s predicted that house prices could fall by as
much as 20 per cent in 2015 because of increased supply and weakening investor sentiment triggered
by low oil prices.
Dubai property prices are notoriously volatile, doubling in the 2000s boom then crashing by more than
40 per cent after the global financial crisis before then rocketing up again afterwards.
In this context, JLL was quick to play down the significance of its revision.
“Although the numbers are slightly greater than we expected, we still believe that this is a relatively
modest soft landing for Dubai property,” Mr Plumb added.
Reidin, whose data is used by many of the big agencies including CBRE and JLL, gets its figures from
achieved house price data provided by property broker clients and government sources such as the
Dubai Land Department, asking price data from property listings, and data collected by its own team of
researchers that goes out to between 10 and 20 buildings a day.
The company reported that average Dubai property prices fell 0.75 per cent in the month of August,
with apartment prices down 0.55 per cent month-on- month and villas down 1.45 per cent over the
same period.
But although house prices in the emirate fell, rents were stabler. According to Reidin data, housing rents
in the emirate fell 1.4 per cent in the year to the end of August and actually rose 0.76 per cent month-
on-month.
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 17
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
Villa rents fell 2.9 per cent over the year and were down 0.61 per cent compared with the previous
month. And apartment rents in the city remained roughly static, rising 1 per cent over the month but
equating to a 1.1 per cent fall year-on-year.
Reidin reported the same trends in the Abu Dhabi market, although it said that they were far less
pronounced in the capital.
It said that average property prices in Abu Dhabi fell 3 per cent over the year to the end of August,
while rents increased 0.5 per cent over the same period.
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 18
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
BUSY PERIOD AHEAD FOR DUBAI
WORLD TRADE CENTRE TO BOOST
HOTELS
WEDNESDAY 30 SEPTEMBER 2015
While the exhibitions hub Dubai World Trade Centre (DWTC) is set to receive hundreds of thousands of
visitors during the busy fourth quarter, hotels on Sheikh Zayed Road will feel the pressure of increased
inventory.
The venue will host more than 60 exhibitions and conferences, including Gitex Shopper, Gitex
Technology Week, Gulfood Manufacturing, the construction event Big 5 and Dubai International Motor
Show, attracting around 820,000 visitors.
The centre hosts about 500 events across trade fairs, live performances, consumer shows, conventions
and private product launches, drawing 2.2 million visitors a year, according to DWTC.
“This peak season at DWTC is a crucial time for regional and international businesses,” said Ahmed
Alkhaja, the senior vice president for venues at DWTC, referring to the fourth quarter.
The meetings, incentives, conferences, and exhibitions (Mice) sector in the Arabian Gulf is valued at
US$1.3 billion, with the UAE accounting for half of that at $653 million, according to Mr Alkhaja.
The 25th edition of eight-day Gitex Shopper, which starts on October 3, reported 211,398 visitors last
year with sales of Dh259m. The five-day Gitex Technology Week that follows on October 18 expects
over 140,000 visitors this year. Three-day Gulfood Manufacturing, which starts October 27, drew 26,329
visitors last year.
Despite these numbers, hoteliers near DWTC and along Sheikh Zayed Road can expect to feel the
pressure on the room rates and occupancies as more rooms come on stream.
Although hotel demand in the area is expected to grow, the growth in supply will outpace demand
growth over the next couple of years, according to Rashid Aboobacker, a senior consultant at TRI
Consulting.
“Hotels on Sheikh Zayed Road are likely to be affected by the upcoming new properties in the area,
including its surrounding districts such as Business Bay, Downtown and DIFC,” he said. “Consequently,
occupancy and average room rate are likely to decline 5 to 10 per cent during this period, but are likely
to rebound in the following years once the additional supply is absorbed by the growing demand.”
Al Habtoor Group expects to open three hotels – St Regis, Westin and W Hotel – in the vicinity around
1,600 rooms from this year.
Despite the slowdown in the global economy, the exhibitions sector is expected to grow.
“With sectors such as banking and financial services, medical and health care, and tourism poised to
grow significantly over the coming years in Dubai, we expect continued growth in the number of
exhibitors and visitors at the DWTC in the near future,” Mr Aboobacker said.
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 19
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 20
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
A HOLLYWOOD MANSION IN THE
DUBAI DESERT
THURSDAY 01 OCTOBER 2015
Want to rub shoulders with the elite and live in the Beverly Hills of Dubai? Then this five bedroom
mansion in the upmarket Emirates Hills gated community could be for you.
The imposing natural stone residence with its swimming pool and large balconies would certainly not
look out of place among the leafy streets and manicured lawns of the once-popular US television series
90210.
But with a price tag set at an eye-watering Dh45 million, perhaps only those with a Hollywood budget
need apply.
Despite being one of Dubai’s most prestigious and expensive gated communities, you may not find the
plethora of stars living in Emirates Hills that you would in its Californian namesake.
But with past residents including the late Benazir Bhutto, you can be sure this is where the cream of
expatriate society comes home to every night.
Built in 2002 by the Dubai developer Emaar as the emirate’s answer to Beverly Hills and Dubai’s first
freehold project, Emirates Hills was sold off as plots rather than completed houses, allowing each buyer
to come up with their own particular style.
This villa spans a generous 13,000 square feet on a plot of 18,795 sq ft. And it is located next to a lake
and with trickling fountains outside. If you squint a little you can almost believe yourself to be on a tour
of the stars’ homes on your approach.
Inside, the house has been designed to accommodate the taste of a Hollywood star, with enough plump
sofas and crystal chandeliers to even keep the American entertainer Liberace happy.
A grand double height entrance hallway opens out to a large, open-plan living space, while there is a
more casual lounge to the side – complete with pool table.
Sliding doors open to a decked terrace, an infinity swimming pool and a large lawn.
The rooms upstairs contain plenty of cupboard space to contain the largest of shoe collections, and there
are full-sized walk-in dressing rooms.
The house includes quarters for two members of staff.
It’s a similar story out front, with a driveway that can accommodate parking for at least five cars.
Q&A
Leigh Borg, a broker at the Belleview Real Estate agency, tells Lucy Barnard about the demand for high-
end properties in Dubai’s Emirates Hills:
What is happening to property prices in Dubai?
According to the latest Reidin figures, average property prices in Dubai fell 9.9 per cent between August
last year and August this year.
Is Emirates Hills affected by the slump?
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 21
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
The figures indicate that the luxury, high end of the Dubai property market in Emirates Hills appears to
be immune from softening property prices in other areas Dubai.
Really?
According to Reidin figures, average property sale prices for Emirates Hills this year have remained
stable in comparison to last year’s sales figures. Emirates Hills villa sales in the more than Dh20 million
price bracket have averaged at between Dh2,000 to Dh3,000 per square foot during both years.
Who would this house suit?
It’s ideal for a large family: in Emirates Hills there are very few modern-design villas, and they rarely
come on to the market.
Tell me more about the design?
This villa has been designed around the Vastu method – a traditional Hindu system of architecture that
sets out principles for design, layout, measurements, ground preparation, space arrangements and
spatial geometry, incorporating Hindu and in some cases Buddhist beliefs. They are intended to
integrate architecture with nature, the relative functions of various parts of the structure and ancient
beliefs.
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 22
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
ABU DHABI’S TALLEST TOWER NAMED
ONE OF WORLD’S BEST NEW
SKYSCRAPERS
THURSDAY 01 OCTOBER 2015
oking out above the Abu Dhabi skyline like a giant stick of Blackpool rock, Burj Mohammed Bin Rashid in
the capital’s World Trade Centre complex has quickly become a local landmark.
The 88-storey, 381-metre tower, the tallest in Abu Dhabi, has been named one of the world’s best new
skyscrapers.
Located on the old Central Market site off Airport Road, the building took sixth place in the annual
Emporis Skyscraper Awards for buildings more than 100 metres high that were completed in the past
calendar year.
The tower, designed by the Foster and Partners architecture firm in the United Kingdom, was built as
part of the new World Trade Centre Abu Dhabi complex, which was completed last year by Arabian
Construction Company for the developer Aldar Properties.
Burj Mohammed bin Rashid is one of two towers that have been built as part of the 400,000 square
metre World Trade Centre complex. It has 474 apartments and was named after Sheikh Mohammed bin
Rashid, Vice President of the UAE and Ruler of Dubai.
Wangjing SOHO in Beijing, a triple-tower complex designed by Zaha Hadid Architects, won the Emporis
Skyscraper Award, marking the first such victory for a Chinese development.
Milan’s 105-metre Bosco Verticale (“vertical forest”), designed by Boeri Studio, came second. The judges
praised its sustainable design that includes more than 700 trees and 90 species of plants, which reduce
smog and attenuate noise.
“The results of recent years clearly show that criteria such as sustainability, efficiency and a clever
design play a much more important role than reaching new superlatives”, said Daniel Schuldt, the
managing director of Emporis, whose award is now in its 15th year.
In June, the Council on Tall Buildings and Urban Habitat in Chicago named Burj Mohammed bin Rashid
the 2015 winner in its Middle East and Africa category.
The Abu Dhabi tower will compete with New York’s One World Trade Center, Singapore’s CapitaGreen
and Bosco Verticale when the group names its world winner in November.
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 23
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
ARAB INVESTORS AND EXPATS MAY
SEE RED OVER JEREMY CORBYN’S UK
PROPERTY PLANS
THURSDAY 01 OCTOBER 2015
The Qzueen Elizabeth II conference centre in London’s Westminster is an unlikely place for a revolution.
Across a busy road from the UK parliament, the 1960s edifice of huge dark rooms carries a slight aroma
of buffet lunches of yore and cleaning products.
But on Saturday 12 September, live on television, the left-wing Labour Party leadership hopeful Jeremy
Corbyn trounced three other moderate candidates to become the leader of the opposition with 59.5 per
cent of the vote.
It gives him a mandate to initiate a significant shift to the left in Labour policy.
John Healey, the former Treasury minister appointed by Mr Corbyn as the shadow housing minister,
says in his report for the left wing Smith Institute think tank and with the accountancy firm
PricewaterhouseCoopers, that 100,000 new council and housing association homes could be built each
year by 2020, costing the government £13.5 billion (Dh75.33bn). Among the funding measures is
forcing private developers to build another 16,000 homes a year as part of planning deals.
He has calculated that government spending on housing benefit will be £120bn over the next five years,
almost £50bn of which goes to private landlords.
For Arabian Gulf investors that could have ramifications far beyond the field of left-wing thought.
High-end London property has become a major part of investment for both British expats and local GCC
Arab investors, spawning billions of dirhams worth of business each year.
According to CBRE research, Middle East investors spent US$2.8 billion on London property during the
first six months of this year, representing 24 per cent of all Middle East international property
investment during the period.
Enter Mr Corbyn, who is committed to the introduction of rent controls, greater affordable or social
housing requirements for new developments and restricting the sale of public assets.
“Too many homes that are built for sale end up as buy-to-let investments or, even worse, as speculative
assets that sit there empty for much of the year,” he says. “Many other cities around the world have
taken steps to ensure homes go to people who live and work in the city rather than to people who see
homes as assets for financial speculation.
“Highly populated cities like Hong Kong and Singapore have taken steps to discourage overseas buyers,”
he adds.
“Local authorities could be given the option of levying higher council tax rates or a new tax on properties
left empty.
“Additionally, we could look at banning the ownership of property by non-UK based entities or by
companies and offshore trusts altogether.”
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 24
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
Perhaps even more alarmingly for overseas landlords, Mr Corbyn also proposes extending the “right to
buy” scheme – first introduced by Margaret Thatcher in the 1980s enabling council housing tenants to
buy their own homes at vastly discounted rates – to the private rented sector.
“We could redirect some of the £14bn of tax reliefs received by private landlords to help struggling
private tenants,” Mr Corbyn says. “We could also investigate whether some of this money could be used
to fund a form of right-to-buy shared equity scheme to private tenants in cases when they are renting
from large-scale landlords.”
Such a move could impact developers such as Qatar’s sovereign wealth fund Qatari Diar, which is
currently repurposing the 2012 London Olympic Park as thousands of purpose-built market-rented
homes.
Further adding to wealthy investors’ concerns, luxury-home values in London’s priciest central
neighbourhoods fell in the third quarter as higher taxes introduced in December damped demand and
encouraged buyers to seek discounts.
Average prices declined 0.4 per cent in areas such as Knightsbridge and Belgravia that Savills defines as
prime central London, the broker said on Wednesday. Values in the best districts in the wider city
increased by 0.7 per cent in the period compared with the second quarter and were unchanged from a
year earlier.
Sales of luxury homes have slowed since the chancellor of the exchequer, or finance minister, George
Osborne increased the stamp-duty sales tax for the most expensive homes in December. The levy
escalates to 12 per cent on every pound a buyer spends above £1.5 million, with the purchaser of a £5m
home paying £513,750 duty, almost £164,000 more than before.
“The increased transactional costs over £1m have undoubtedly made buyers more cautious,” says
Lucian Cook, the head of residential research at Savills. “Particularly as the stamp duty change came
when parts of the market were beginning to look fully priced after five years of steady growth.”
Prime central London values are down 4.6 per cent from a year earlier after dropping in three of the past
four quarters. Prices for properties worth more than £2m fell by an average of 2.6 per cent, the broker
added.
“For all but the very best in class properties, many buyers are expecting a discount on last year’s prices
at least equivalent to the additional tax,” Mr Cook says.
In addition, the incumbent Conservative party’s stance towards buy-to-let property is also set to become
much tougher as the current government attempts to leverage more cash out of what policymakers
perceive to be an undertaxed asset.
On July 8, Mr Osborne announced in his budget a shock decision to remove landlords’ ability to deduct
the cost of their mortgage interest from their rental income when they calculate a profit on which to pay
tax.
The new rules will come in to effect from April 2017 restricting tax relief on mortgage interest to the
basic rate, currently 20 per cent.
“Buy-to-let landlords have a huge advantage in the market as they can offset their mortgage payments
against their income, whereas homebuyers cannot,” Mr Osborne said in his budget speech.
Although the planned changes may have little impact on GCC investors – unless they happen to be
higher-rate tax payers in the UK – the proposed restriction will reduce affordability for some buy-to-let
landlords and could even force some to sell up – perhaps affecting the wider housing market.
Unsurprisingly, Mr Corbyn’s plans have only added to a sense of outrage among some estate agents
specialising in selling high-end houses in the sort of posh London suburbs frequented by many GCC
investors.
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 25
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
“If Jeremy Corbyn follows through with the retrograde plan to give assured shorthold tenants the right
to buy at a discounted rate both private and corporate landlords will drop out of this type of investment
creating another damaging blow to the central London property market,” thunders James Robinson, the
general manager at estate agent Lurot Brand.
“In recent years London has had to absorb increases in annual tax on enveloped dwellings, changes in
non-dom legislation and punitive stamp duty increases to nullify the revoltingly named ‘mansion tax’,”
he adds.
“The net result of this meddling has been a 33 per cent drop in turnover in property sales in
Westminster and Kensington & Chelsea this year compared with 2014.”
Melanie Leech, the chief executive of the landlords organisation the British Property Federation is also
scathing.
“He [Corbyn] has suggested some policies that we would be worried about, namely rent controls, which
would scare off investment in the build-to-rent sector, which has the potential to deliver a significant
amount of new homes and attract as much as £30bn investment,” she says.
“Plans to extend right-to-buy to private-sector property are probably unworkable and no doubt do not
accord with European human rights law,” she adds.
With plans to introduce dramatic policies like these many UK pundits are already writing Mr Corbyn off,
suggesting his proposals will prove so unpopular with “Middle England”, as the British middles classes
are often referred to, that he is likely to be ousted by his own party well before even the prospect of the
next election comes into view.
Others, however, point to a newly energised group of young voters who favour Mr Corbyn’s views and
warn against underestimating the Labour Party veteran.
Still, with no general election due until 2020, Tom Bill, the head of London residential research at Knight
Frank, says time may prove to be on overseas investors’ sides – at least for a while.
“Events like elections can cause political uncertainty in the London market,” he says.
“However with another four and a half years until the next election it seems unlikely the opposition
Labour Party’s policies will be a major focus for buyers in the short term.”
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 26
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
DUBAI HOLDING’S MAIN TRADING ARM
POSTS 24% RISE IN FIRST-HALF NET
PROFIT
SATURDAY 03 OCTOBER 2015
Dubai Holding’s main trading arm has posted a 24 per cent rise in net profit for the first half of the year
to Dh2.6 billion from the same period last year.
The global investment holding company, which has interests in 24 countries, said Dubai Holding
Commercial Operations Group’s (DHCOG) full-year net profit would probably exceed Dh5.5bn this year,
up from Dh4.68bn last year.
DHCOG is the parent company of entities including Dubai Properties Group, the free zones operator
Tecom Investments, and the Jumeirah Group, a hotel operator.
Dubai Holding and its subsidiaries employ 22,000 people around the world. The group manages a
portfolio of assets valued at Dh130bn, and is currently developing the Dh25bn Mall of the World project.
Dubai Holding is not publicly traded, but it does sell bonds on the international market.
“As Dubai gears up to become the most productive and innovative hub in the world, we have embarked
on several initiatives to continue to develop strategic sectors vital to Dubai’s economy,” Ahmad bin Byat,
the company’s vice chairman and managing director, said yesterday.
Fadel Al Ali, Dubai Holding’s chief executive, said: “We continue to improve the quality of DHCOG’s
earnings by driving recurring revenue streams across all our businesses.
“These solid results demonstrate the company’s sound strategic planning and prudent financial
management. Strong business performance boosted by a range of new projects are expected to further
support the company’s long-term growth.”
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 27
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
NAKHEEL AWARDS DH819M PALM
TOWER CONTRACT TO TWO ABU DHABI
BUILDERS
SATURDAY 03 OCTOBER 2015
Nakheel has awarded a Dh819 million contract to build The Palm Tower, a 52-storey five-star hotel and
residential building at Palm Jumeirah in Dubai.
The master developer yesterday said it had appointed two Abu Dhabi companies, Trojan General
Contracting and National Projects & Construction, to jointly build the 240-metre-high tower.
The Palm Tower is one of 10 hotels being built by Nakheel as part of its expansion into the hospitality
market.
However, most of the other properties are in the mid-market (three-star and four-star) section of the
market rather than the luxury end, which Sanjay Manchanda, Nakheel’s chief executive, described last
month as “ultra-competitive”.
Speaking at the recent Cityscape Global event, Mr Manchanda said the hospitality sector was “integral”
to Dubai’s economy and that until recently Nakheel did not have a significant presence in that market.
He was at the exhibition announcing Nakheel’s second property with Premier Inn, a budget hotel
operator, at its extended Dragon City project.
“We’ve found that there is an opportunity. We scouted a few locations and we believe there is more to it
in the budget sector,” said Mr Manchanda.
“We found that we need to be looking at location. Where are the gaps in the market and what are the
economic returns?”
The Palm Tower’s hotel will have 290 rooms, with dining and leisure facilities such as a rooftop infinity
pool, a restaurant and a viewing deck.
The building will also house 504 luxury apartments, for which sales have already begun. The tower will
have a number of studio apartments, as well as one-bedroom, two-bedroom and three-bedroom units.
Prices for the apartments will be from Dh1.7 million.
Nakheel said the tower would offer access via a bridge and walkways to its Club Vista Mare and its Palm
Promenade West Beach projects.
Faisal Durrani, the head of research at Cluttons in Dubai, said Dubai still needed more hotel rooms to be
made available ahead of Expo 2020.
“The city has such ambitious targets to host 20 million people in the next four to five years. Hotel
occupancy is still 80 to 90 per cent, there’s still 12 million to 13 million people coming in every year,” he
said.
“In order to hit that 20 million target, you need a whole lot more hotels and a whole lot more supporting
tourism infrastructure in the form of retail and hospitality developments.”
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 28
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
There should not be many concerns about a potential oversupply, he said, given that London currently
has about 130,000 hotel rooms for 18 million visitors a year, while Dubai only has about half as many
hotel rooms.
“But you can’t look at these things in isolation,” said Mr Durrani.
“It’s all part of a much, much bigger picture. The aviation sector in Dubai is playing a huge role in
helping to drive tourist numbers and growth in the economy as well.
“We have Al Maktoum airport being given the green light to be built. That is going to contribute a
massive part of the economy over the next decade or two. Dubai wants to be an aviation nexus for the
globe. With that comes the tourists, the requirement for additional hotels, shopping malls and theme
parks. It’s still a growing city.”
Source: The National
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 29
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
CHEAPEST DUBAI SUBURB TO RENT
STUDIO, ONE-BED APARTMENT
WEDNESDAY 30 SEPTEMBER 2015
If you are scouting for the cheapest rental deal in Dubai, look at three communities - Dubailand, Dubai
Silicon Oasis and International Media and Production Zone (IMPZ).
Although new tenants can have a glance at the official rent index and be content with lower rates,
remember, in their case the landlords dictate the rents. Only existing tenants are protected by the rent
index cap, which Emirates 24|7 reported is being updated once a year now.
So, which is the cheapest deal based on the average asking rentals (based on market listings)?
Dubailand developments such as SkyCourts, Remraam and Arjan offer the best rental deals.
SkyCourts
Average asking rents for studio and one-bed apartments range from Dh38,000 to Dh45,000 per annum
(pa) and Dh55,000 to Dh65,000 pa, respectively.
The official rent index, issued by Real Estate Regulatory Agency (Rera), puts rentals at Dh35,000 to
Dh45,000 pa for a studio and Dh45,000 to Dh55,000 pa for a one-bed unit.
Remraam
Rents for studio and one-beds range from Dh40,000 to Dh50,000 pa and Dh60,000 to Dh65,000 pa,
respectively. The index figures range from Dh40,000 to Dh45,000 pa and Dh50,000 to Dh60,000 pa,
respectively.
Arjan
Asking rentals for studio units are Dh45,000 to Dh50,000 pa, while one-bed apartments rates range
from Dh65,000 to Dh70,000 pa. Rera index figures range from Dh30,000 to Dh35,000 pa and Dh35,000
to Dh45,000 pa, respectively.
IMPZ
Average market listing for studio units is between Dh40,000 and Dh50,000 pa. As for one-bedroom
units, rentals range from Dh55,000 to Dh70,000 pa. The index reveals rents for studio and one-bed
units are between Dh30,000 and Dh40,000 pa and Dh50,000 and Dh55,000 pa, respectively.
Dubai Silicon Oasis
Studio units can be leased from Dh40,000 to Dh55,000 pa, with one-beds leasing for Dh55,000 -
Dh75,000 pa. The Rera index numbers range from Dh35,000 to Dh45,000 pa and Dh50,000 to
Dh70,000 pa, respectively.
Source: Emirates 24/7
Back to Index
DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com
IN THE MIDDLE EAST FOR 30 YEARS Page 30
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
With 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, Qatar, 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
Julia Knibbs MSc
Manager – Research and Consultancy - UAE
+971 4 403 7789
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, Qatar 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.