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Indian realty to benefit from RERA and GST

COVER INTERVIEW Kevin Yardi Yardi Systems SPECIAL FEATURES Property deal value grows 16% to Dh132 billion in H1

Yardi-stick Developers to benefit from onsite sale at Cityscape Global

Why did Pacific Controls Chairman leave the UAE? Drake & Scull gets Dh500m lifeline UAE building project value hits Dh836 bn in 2017

In property management, creating a new

JOIN OIN YOUR YO OUR PEERS PEERS AND AND D PARTICIPATE PART C PATE IN TTHE HE REGION’S REG ON S PPREMIER REMIER EV EVENT ENT FOR TTHE FOR HE LLEISURE, EIS I UR UREE SP SPORTS, ORTTS, R RESORTS E ORTTS A ES AN ND PO ND POOL OOL & SP SSPA A INDUSTRIES NDU D ST S RI R ESS

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EDITORIAL

Real estate transaction value grows to Dh132 billion

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Despite a seemingly stabilising marker, land and real estate transaction value grows 16.8 per cent in the first half of 2017

he latest half-yearly land and property transaction report

by Dubai Land Department (DLD) shows that the overall land and property transaction value grew 16.8 per cent to US$36 billion (Dh132 billion) in the first half of 2017, compared to the corresponding period last year. The total number of sales, mortgages and other transactions reached 35,571 from January 1 to June 30, 2017. This includes 25,864 sales transactions worth over Dh63 billion and 7,893 mortgage transactions worth Dh60 billion, while 1,814 other types of transaction brought in Dh9 billion.

Land represents Dh91 billion from approximately 8,000 transactions, while building sales accounted for 3,887 transactions with a total value of Dh10 billion and unit sales crossed the Dh31 billion mark from 24 transactions. As many as 21,574 investors carried out 27,381 number of investment transactions, worth Dh58 billion, DLD report said.

This is the most authentic reflection of the current market activities in Dubai’s real estate, that further demonstrates the level of buying and selling activities in the emirate. The total value of real estate transactions in Dubai exceeded Dh390 billion across 95,000 transactions in 18 months (1 Jan 2016 – 31 July 2017), DLD said. This is higher than the nominal GDP of 150 countries in the world.

In addition to this, a record total 8.06 million international overnight tourists stayed in Dubai’s hotels and hotel apartments during the first six months of 2017, reflecting a 10.6 per cent increase over the same period last year, says Dubai’s Department of Tourism and Commerce Marketing. So, there are encouraging signs in the real estate market.

However, what is not encouraging and remains a cause for serious concern is the frequency of fire incidents in high-rise buildings in the UAE. The latest back-to-back fire incidents at the Torch Tiger tower in Dubai Marina needs to be looked at very seriously as these incidents give the industry and the emirate a bad name – globally.

However, what is encouraging is the announcement by Cityscape Global to allow developers to sell their properties onsite at the exhibition – which will help developers to sell their inventories and new off-plan properties, turning the event a business-toconsumer (B2C) event.

Meanwhile, best wishes to all our readers on the eve of the Hajj and Eid Al Adh. Eid Mubarak to all!

– T. Akhtar

40

CONTENTS

COVERSTORY

Onsite property sale at Cityscape will boost real estate sector’s performance 50

PROJECTNEWS

EXECUTIVEOPINION

Mishuhiro Furusawa/IMF Mohanad Alwadiya/Harbor Real Estate Prabhakar Rao/Gemini Dhiren Gupta/Mortgage 4C

FOCALPOINT

Why did Dilip Rahulan disappear from the UAE? Land deal value hits $36bn

COVERSTORY

32

33 34 35

58

NEWSUPDATE

36 48

Kevin Yardi lays down his game plan for the Middle East 40

36

Arabtec gets Damac $171 m contract to build 1,296 villas 58 Drake & Scull gets Dh500 million cash to survive 62 UAE’s building project value hits Dh836 billion in 2017 66

NEWSUPDATE

INDIANREALTY

RERA and GST are changing the face of India’s real estate market forever 70 Indian Developers welcome new regulations 74 BNC Infra and Adani Group upbeat despite regulations 76

REGULARFEATURES GULF PROPERTY

The region’s premier monthly for lifestyle, real estate, construction and building materials

EDITORIAL

EDITOR T. Akhtar editor@panasian1.com

EDITORIAL COORDINATOR Zeba Malik z.malik@panasian1.com

PUBLISHER

T. Akhtar Pan Asian Media MFZ LLC

Realty Bytes Spotlight

LICENCE

12 80

Licenced by RAK Media City, authorised by the National Media Council. Gulf Property is a publication of Pan Asian Media MFZ-LLC

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Dubai, UAE Tel : (9714) 2281021 Fax : (9714) 2281051 E-mail editor@panasian1.com Web www.gulfpropertyme.com

CIRCULATION 20,000 copies

Gulf Property

11

REALTYBYTES

Meraas issues $400m sukuk with 5-year maturity

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ubai’s Meraas Holding, a real estate developer owned by the government, issued a $400 million sukuk recently, selling it privately to a select group of investors, sources said. The Islamic bond, with a fiveyear maturity, was priced at par with a 5.112 per cent yield on May 26. Emirates NBD, Noor Bank and Standard Chartered coordinated the transaction and served as bookrunners along with Dubai Islamic Bank, Sharjah Islamic Bank and Warba Bank.

Meraas is the parent company of leisure and entertainment company DXB Entertainment, which owns four theme parks and a water park in Dubai.

Dubai Holding is the investment vehicle of Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum.

Raed Kajoor Al Nuaimi, formerly chief executive of DXB Entertainment, will lead the new management company. Earlier, a new entity was set up to manage development projects for Meraas Holding and Dubai Holding.

Meraas comprises property development sales and asset management across some of Dubai’s best locatons.

It prides itself on its commitment to projects of the highest quality. g

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Gulf Property

Dubai govt to form new project entity

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The move is a reflection of the economic reality marked by lower oil prices and a lower growth outlook, that is encouraging governments to cut costs by creating synergies

ubai Government is establishing a new project development company that will manage projects by Dubai Holding and Meraas Holding, according to a media statement issued recently.

The move is a reflection of the economic reality marked by lower oil prices and a lower growth outlook that is encouraging governments to consolidate their state-owned businesses to cut costs by creating synergies. It is however, unclear if a mega merger of both the entities is on the cards. The statement did not give any indications on the new company under formation.

Both Dubai Holding and Meraas Holding have been developing residential, commercial, retail and entertainment projects separately.

The new company is ex-

pected to create a synergy in creating a robust project development pipeline to help Dubai witness new projects that meet the growing demand and fall in line with the government’s economic growth vision.

Dubai Holding, an investment conglomerate, has operations in 21 countries with a 22,000-strong work force. It manages a Dh130 billion ($35 billion) portfolio of assets, which supports the strong development of Dubai’s non-oil economy across sectors including tourism, hospitality, real estate, media, ICT, education, design and trade.

Over the years, Dubai Holding has created Tecom Investments – responsible for the development of the emirate’s knowledge clusters that include Dubai Internet City, Dubai Media City, the Knowledge Village, Dubai

Studio City, the International Media Production Zone – as well as Dubai Properties Group, Jumeirah Group – its hospitality development and hotel management arm in addition to a number of industrial clusters such as Dubai Industrial City, Dubai Design District, Dubai Humanitarian City, among others.

Meraas, with portfolio and activity in real estate, tourism, hospitality, healthcare, technology, retail, F&B (food and beverages), leisure & entertainment, aims to make Dubai and the UAE better for people to live, work and play in.

“Raed Kapoor Al Naima has been appointed Chief Executive Officer (CEO) of a new entity to lead a development group that will manage multi-billion dollar development projects across Dubai Holding and Meara’s Holding,” the statement said. g

REALTYBYTES

Emaar to list UAE real estate business

Dubai retail market softens in Q1 2017

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onsumer confidence in the UAE remained uncertain in 2016 resulting in the Dubai retail market experiencing further softening in Q1 2017, according to a latest report by Knight Frank.

“Well-established malls with higher footfall continue to maintain healthy occupancy rates; however the delivery of additional retail supply is expected to put pressure on overall occupancy rates. UAE shopping malls are also expected to experience further competitive pressures from online rivals, as more consumers embrace e-shopping,” the report said.

Knight Frank’s long-term view remains optimistic as Dubai’s retail market is strongly supported by the hospitality sector. The deliv-

ery of Dubai’s new theme park complexes along with the Opera District and other demand generators is expected to drive demand for the hospitality market, which will undoubtedly have a knock-on effect on the retail market.

It observed a modest growth in sales. UAE retailers are now seeing modest single-digit growth in sales due to general macroeconomic conditions, while there are signs of saturation: an additional 900,000 square metres of space will be delivered over the next couple of years through new shopping centres or expansions.

“Traditional retailers are facing competition from ecommerce leaders such as Amazon. E-commerce sales are expected to account for US$1.5 billion of the Gulf’s high-end luxury segment

within the next four years,” Knight Frank said. “Operators are more often offering promotions and price reductions to entice customers and maintain strong footfall to further enhance and build on the emirate’s strong position as a central shopping hub while the electronics market, supported by Dubai’s position as a regional hub for trade flows and re-exporter of devices in the region, is expected to grow 4.7 per cent to reach US$3 billion by 2020.”

“It is our view that brick & mortar stores will continue to be essential given shopping centres in Dubai provide family entertainment in addition to shopping, however retailers may look to realign their real estate strategies to reduce operating costs and to invest further into online channels,” the firm said. g

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maar Properties has announced plans to list its UAE Real Estate development business in order to create significant value for its shareholders.

The IPO will be the largest since the Emaar Malls IPO in 2014.

Subject to market conditions, Emaar will offer up to 30 per cent of its UAE Real Estate Development business through a share offering on the Dubai Financial Market (DFM).

Funds raised through the sale of equity will be primarily distributed as dividends to Emaar’s shareholders.

The decision to list Emaar’s UAE Real Estate Development business was the result of an internal review of Emaar’s asset values. This indicated the importance of highlighting the business as a major contributor to the overall profitability of Emaar through an independent listing.

Emaar’s real estate development in the UAE has grown in the last five years. Real estate sales increased from Dh4.2 billion (US$1.14 billion) in 2012 to Dh14.4 billion (US$3.92 billion) in 2016.

Until the end of May 2017, the business recorded sales of Dh9.7 billion (US$ 2.64 billion), 24 per cent above the same period in 2016. Total backlog as at the end of May 2017 stood at Dh40 billion (US$10.9 billion). g Gulf Property

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REALTYBYTES

Sobha Group launches Hartland Aflux

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obha Group, the UAE-based multinational conglomerate, has launch ed Hartland Aflux as part of Sobha Hartland Greens Phase III. More than 70 per cent of apartments in Phases I and II of the property, located in the heart of Dubai, have already sold out, a statement from the company said.

Hartland Aflux, which falls in the affordable luxury segment, will enjoy the same signature quality of Hartland Greens apartments in Phase I and II. Hartland Aflux will comprise studios and 1, 2 and 3-bedroom apartments in two L-shaped buildings.

The configuration of the building includes two podiums and a 12 floor-plan with considerable emphasis on privacy and lifestyle demands.

Apartment sizes will range from 468 to 1,378 square feet, making them smaller than the average Sobha Hartland apartment, yet grander, stunningand more mpressive than any other. These new apartments will have views of the Dubai canal with a generous spread of 2.4 million square feet of green space and elegantly designed villa communities around it. Phase III promises to be better, with access to interrupted views of the community and the Dubai Canal.

It is expected to be complete 2019. g

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Gulf Property

IMF lowers UAE growth rate to 1.3% in 2017 UAE’s financial buffers and robust policy responses facilitate adjustment to market realities

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he International Monetary Fund (IMF) has lowered the UAE’s economic growth to 1.3 per cent following its annual review under Article IV. The UAE’s large financial buffers, diversified economy and the authorities’ robust policy responses are facilitating adjustment to the new oilmarket realities while safeguarding the economy and the financial system, the IMF said in a recent statement following the conclusion of its mission to the UAE, led

by Natalia Tamirisa.

“Non-oil growth is projected to rise to 3.3 per cent in 2017, reflecting more gradual fiscal consolidation, stronger global trade, and higher Expo 2020 investment,” the statement said.

Reaching the goal of returning gradually to a balanced budget over the medium term would save resources for future generations.

At the end of the mission, Natalia Tamirisa

said, “The UAE is adjusting well to the new oil market realities. Its large financial buffers, diversified economy and the authorities’ robust policy responses are facilitating the adjustments while safeguarding the economy and the financial system.

“Growth is set to rebound.

Non-oil growth is projected to rise to 3.3 per cent in 2017, reflecting more gradual fiscal consolidation, stronger global trade, and higher Expo 2020 investment. Oil GDP is projected to decline by 2.9 percent reflecting agreed OPEC cuts in oil production. As a result, overall growth will ease to about 1.3 per cent in 2017, before recovering to above 3 per cent over the medium term. Average inflation is projected to rise to 2.2 per cent in 2017. With the prospects of firmer oil prices, the government’s budget deficit is projected to decline to 4.5 per cent of GDP and the current account surplus to improve to 2.4 per cent of GDP in 2017.”

Existing financial buffers allow fiscal consolidation to proceed gradually. Reaching the goal of returning gradually to a balanced budget over the medium term would save resources for future generations, she said. “This requires continued efforts to rationalize spending and improve its efficiency, including through careful cost-benefit analysis and continued review of government-related enterprises’ (GREs) infrastructure investments. A timely introduction of the VAT and excises would diversify government revenues.

“Close coordination of cash flow and liquidity management among the governments, GREs, and sovereign wealth funds would improve predictability in government financing flows and banking system liquidity, fostering continued healthy credit growth in support of private sector activity. The approval of the debt law would facilitate the development of the domestic debt market.” g

Dubai to get over 26,000 buildings

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ore than 26,000 buildings are under construction in Dubai, according to Dubai Municipality, the government body that issues all building permits in the emirate.

Dubai, the second largest emirate of the seven UAE states, has had more than 120,000 civil structures till last year – mostly build within the last 50 years.

However, buildings built in the 1960s and 1970s had a shorter life due to soil conditions and the use of traditional construction technologies and usually come up for demoliton within 35-40 years. It currently hosts the world’s tallest 20 towers including Burj Khalifa – the world’s tallest tower – and JW Marriott Marquis, the world’s tallest all-hotel tower.

“There are currently 26,653 buildings under construction, including 16,870 developer’s villas, 1,238 multi-storied

buildings, 737 industrial buildings and 6,111 private villas,” Layali Al Mulla, Director of DM’s Buildings Department, said.

Once completed, these will raise the number of buildings to more than 145,000 by 2020. She said that in the first quarter of 2017, the number of buildings under the municipality’s supervision rose to 110,000, out of which 26,653 buildings are under construction. This includes private villas investment villas, general buildings, public and industrial establishments and multi-storied buildings.

Al Mulla said that as many as 3,360 buildings have been completed from this year till the end of March, out of which 2,296 are investment villas, 103 are multi-storey buildings, 783 are private villas, 67 are industrial buildings, 47 are general and 65 are high-rise.

The new buildings cover 33,470,772 square feet, she

said. The multi-storied buildings occupy 5,313,909 square feet while the investment villas occupy 7,420,682 square feet.

Al Mulla said the Engineering Supervision Section inspectors carried out about 18,840 construction inspections on buildings under construction, while permits were issued against 4,157 applications for transporting fresh sand, and the section also received 927 applications for the transfer of sand.

She said that the total number of the suppliers and manufacturers of ready-made concrete registered in the Building Department registry has reached 60 companies while two companies were newly approved as suppliers of ready-made concrete.

The history of skyscrapers in Dubai began with the construction of Dubai World Trade Centre in 1979, which is usually regarded as the first high-rise in the city. g

REALTYBYTES

ACWA Power submits lowest bid for solar park

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CWA Power has submitted the lowest bid for the fourth phase of Dubai’s Mohammed bin Rashid Al Maktoum Solar Park.

Dubai Electricity and Water Authority (DEWA) received a low bid of $9.45 cents per kilowatt hour (kW/h) for the 200 MW Concentrated Solar Plant (CSP) plant.

Bids from four international consortiums were opened recently at the DEWA head office, it said in a statement.

Saudi Arabia-based energy company ACWA Power had won phase 2 of the solar park.

The plant will be operational by April 2021, with other CSP projects generating a total of 1,000MW by 2030.

The Mohammed bin Rashid Al Maktoum Solar Park is the biggest singlesite solar park in the world that is based on the IPP model. It will generate 1,000MW by 2020 and 5,000MW by 2030.

The 200MW photovoltaic second phase of the solar park was launched in March 2017.

The 800MW photovoltaic third phase will be operational by 2020, and the 200MW CSP fourth phase will be operational by 2021. DEWA will provide power to the Expo 2020 site including 400 megawatts from the Mohammed bin Rashid Al Maktoum solar park. g Gulf Property

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REALTYBYTES

Single villa at Emirates Hills sells for a record Dh100m

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villa at Emirates Hills was sold for Dh100 million – a record transaction, according to brokerage firm Gulf Sotheby’s International Realty.

Gulf Sotheby’s, alongside its strategic partner, Bellevue, recently closed the highest property transaction ever recorded at Dh100 million for an Emirates Hills villa.

The villa spans across 42,000 square feet and houses eight en-suite bedrooms along with entertainment areas and is regarded as one of the most well-built and intricately designed luxury homes in Dubai.

Both the seller and agent appreciated that by entering into an exclusive sales agreement and by allowing a significant period of time to find the right buyer, the villa would be sold to the right person, at the right price. The property transaction was handled by two very well respected members of the agency and with the right team in place, the deal took 18 months to close.

Agents at Gulf Sotheby’s International Realty are aware that selling a luxury property of this stature requires perseverance, patience and trust. Pricing plays a crucial role as it needs to be correct and in correlation to the markets housing price. g

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Gulf Property

Damac launches Casablanca Villas

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amac Properties, a leading developer, has launched Casablanca Villas, a collection of fully furnished and serviced luxury boutique villas in Dubai inspired by the enchanting vibes of Casablanca city. As part of its Ramadan specials this year, Damac Properties is offering investors and customers the opportunity to pay 60 per cent of the property value upon completion.

Casablanca is a city in the Kingdom of Morocco that fascinates, inspires and sparks unceasing curiosity among the super-rich. Influenced by European culture and architecture, this marvellous destination radiates an inexhaustible joie de vivre, transporting dwellers and visitors alike to the relaxed Moroccan ambience.

Casablanca Villas will go on sale in Dubai on Wednesday 31st May at Westin Mina Seyahi, Serdaal Ballroom from 7pm until 2am. To present the new offering to the market, Damac Properties invites investors and customers to an Iftar and Suhoor during this time.

Niall McLoughlin, senior Vice-President, Damac Properties said: “Casablanca Villas represent our first in a series of special offerings and promotions we are launching this year. With a Casablanca Villa, you’re getting more than just a villa – it’s the value proposition the property carries; from inspiring architecture to undeniable vigour and a peaceful ambience.

“Whether you are an investor or an end-user, furnished and serviced

Casablanca Villas will appeal to you as a high-yielding property investment or a home in an international golf community, respectively.”

Beautifully modern with large glass windows, lush green surrounds as well as luxury interiors and fittings, a Casablanca Villa is a musthave for someone with an eye for impeccable detail and quality.

Casablanca Villas are located in Akoya Oxygen, a completely self-contained master development with everything needed for a happy, healthy lifestyle, right there onsite. The whole family will find something to interest and engage them for every occasion. There is a huge choice of shopping, dining and entertainment, all set within a stunning green backdrop. g

REALTYBYTES

Damac’s Aknan Villas bring style and comfort

Damac brings luxury with Burj

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amac is all set to launch Burj Damac Seaviews in Qatar.

The 31-storey tower, featuring luxury furnished and serviced apartments and townhouses ideally located at the beachfront in Lusail City, is set to raise the standards of hospitality in the city and beyond.

Burj Damac Seaviews apartments have a starting price of QR 2.5 million.

Located in the prestigious Marina District of Lusail City, an ideal destination to visit, live, work and do business, Burj Damac Seaviews represents an ideal investment destination nestled by the fabled waters of the Arabian Gulf, Qatar’s proud past.

Today, the country takes its well-earned place as one of the most enterprising nations in the Middle East and a destination of desire for in-

vestors. This stunning transformation has been inspired by a vision to create a new benchmark of excellence.

Niall McLoughlin, senior Vice-President, Damac Properties said: “Lusail City represents the centre of Qatar’s future. From this point, we are bringing to the country yet another development that will raise the bar of its hospitality sector. In addition to the premium location and spectacular sea views this project offers, investors can enjoy the option to become part of our rental pool.

This means that they can earn rental income from their property when they are not staying there themselves.”

As set out in the Qatar National Tourism Sector Strategy 2030, the country seeks to attract more than 7 million leisure and business travelers annually, with hotel ac-

commodation supply to reach over 56,000 units.

World-class events and leisure and cultural facilities are set to appeal to global tourists as well as regional travellers seeking a tourist destination nearby.

From soothing the mind with long walks on the beach to feeling the gentle waves crashing at one’s feet, Burj Damac Seaviews presents a slice of paradise. Elegantly designed, the décor of each room will allow people to relax in the lap of luxury.

In Qatar, Damac Properties is also developing two other high-rise projects: Burj Damac Marina, Qatar’s finest luxury hotel apartments, and Burj Damac Waterfront, luxury hotel apartments by the ocean, both located in Lusail City and managed by the firm’s hospitality arm. g

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amac Properties has launched Aknan, a collection of 3-bedroom luxurious villas that pays homage to the sentiment of home being such a central part of life.

Aknan Villas went on sale in Dubai in May. Priced at Dh 999,999 with a payment plan spanning five years, each Aknan Villa features beautiful exterior design and aesthetics, while the inside is tastefully designed with desirable, wide open spaces that are comfortable as much as they are luxurious.

Niall McLoughlin, senior Vice-President, Damac Properties said: “Aknan, meaning ‘shelter’ in Arabic, highlights the importance and love of the concept of ‘home’, which represents universal values that span cultures, creeds and generations.

To the Arabian culture, home is something held very close to the heart and goes hand in hand with family time.”

“It is also customary to extend hospitality and host friends at home so to capture this incredible sentiment, we wanted to create homes that exude a warm welcome,” he said.

Aknan Villas feature floor-to-ceiling windows that open out onto a private garden providing scenic views of the lush green surrounds, creating a peaceful and picturesque environment. g Gulf Property

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REALTYBYTES

DEWA awards Dh798 mn contract to Spanish firm

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ubai Electricity and Water Authority (DEWA) has awarded a contract worth Dh798 million for the third phase of its K-Station at the Jebel Ali power station to Spanish company Duro Felguera. The global tender received several competitive bids, DEWA said in a statement. The project includes the supply, installation, testing and launch of two F-type gas turbines from Siemens AG that will produce 590MW at 50 degrees centigrade.

The turbines are planned to be operational by the second quarter of 2019. K-Station is part of the Jebel Ali power and water desalination station, and uses natural gas turbines to generate power.

The station is fully-automated and features control systems and operating technologies that minimise emissions. The current generation capacity of KStation is 948MW. After the completion of the third phase, 590MW will be added, bringing the station’s total production capacity to 1,538MW. On completion of this project in 2019, DEWA’s total installed capacity will be 11,990MW. K-Station is being expanded as part of DEWA’s efforts to meet the increasing demand for electricity. The authority has allocated Dhs65 billion towards Dubai’s energy sector over the next five years. g

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Gulf Property

Emaar links Vida Hotel to Dubai Mall

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maar Hospitality Group, the hospitality and leisure subsidiary of Emaar Properties, announced Vida Dubai Mall, a new hotel project linked directly to The Dubai Mall.

Opening to direct views of the iconic Burj Khalifa, Vida Dubai Mall is a two-tower development with the 195-room Vida Dubai Mall hotel and 614 serviced residences under Vida Residences Dubai Mall. The hotel and 380 serviced residences form part of a 55-storey tower, while the rest of the serviced residences are located in a second tower, 38 storeys high.

The two towers are linked

by a 7-storey podium with a wide range of amenities including restaurants, retail and leisure attractions. The podium-level amenities include an outdoor swimming pool, sunbathing deck, kids club, yoga deck and events spaces, which overlook Burj Khalifa. This marks the tenth upcoming hotel project – in the UAE and international markets by Vida Hotels and Resorts, a refreshingly different upscale lifestyle hotel and serviced residences brand for the new generation of business executives, entrepreneurs and leisure travellers. Vida Hotels and Resorts already has two operational hotels in Dubai Vida Downtown and Manzil

Downtown. Additionally, the brand has seven upcoming projects, including Vida Dubai Mall and three in international markets including Saudi Arabia, Bahrain and Egypt. With two other hotel brands under Emaar Hospitality Group – Address Hotels + Resorts and Rove Hotels – the company now has 11 operational hotels in Dubai, and 27 upcoming hotel projects in the UAE and key overseas markets including Saudi Arabia, Bahrain, Turkey and Egypt.

The upcoming Vida Hotels in Dubai are: Vida Dubai Marina, Vida The Hills, Vida Townsquare, Vida Dubai Creek Harbour and Vida Residences Downtown. g

square feet, in addition to 97 studio, one, two and threebedroom serviced residences to be operated on an extended-stay basis.

The property will offer a number of dining concepts including an Asian specialty restaurant, a gastro pub, a unique destination restaurant, bar and lounge on the 43rd and 44th floors, a

French lobby café, and an all-day restaurant and a pool bar. Guests will have the option to relax and unwind at the SoSpa or use a comprehensive gymnasium, outdoor pools, private cabanas and a kids club.

Located adjacent to the iconic Raffles Dubai, both properties will form a luxury cluster within Wafi offering guests a range of shared amenities and services. Sofitel Dubai Wafi will infuse the brand's essence with Arabic culture and design elements reflective of Wafi. g

Sofitel to launch largest hotel in ME

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ofitel has announced the launch of its largest property in the Middle East, in collaboration with development partner MKM Commercial Holdings LLC. Sofitel Dubai Wafi, expected to open in late 2019, will join the luxury brand's growing portfolio of 14 hotels and 4,400 rooms in operation and under development in the Middle East.

Sofitel Dubai Wafi will feature 501 guestrooms, including 86 suites ranging in size from 180 square feet to 2,050

Five-year payment plan for Anantara

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uxury residential and hospitality property developer Seven Tides has launched a new five-year payment plan for its Anantara The Palm Dubai Residences.

Buyers can now purchase ready-to-move-in properties in the luxury development, by paying a deposit of 20 per cent of the total sales price.

A further 5 per cent will have to be paid every quarter thereafter, starting 12 months from the date of the initial reservation agreement.

Of the original 449 units, there are now only 160 one and two-bedroom apartments left. The one bedroom apartments range in size from 1,156 square feet to 1,560 square feet and start at Dh2,730,000; while two bedroom apartments, measuring 1,774 square feet to 2.248 square feet, are priced from Dh3,990,000.

Abdulla Bin Sulayem, CEO, Seven Tides, said: “This is an excellent opportunity for people to own a prop-

20%

Initial deposit to be paid before moving in

erty in the Anantara The Palm Dubai Resort development, which offers Thai-inspired luxury on Palm Jumeirah.”

“These apartments are perfect as second or holiday homes, where residents can take advantage of the facilities and amenities within the five-star resort, away from the hustle and bustle of the city. We can also assist with a leasing strategy on a longterm basis, or the apartment can be added to the hotel rental management scheme, whereby the unit becomes a part of the hotel inventory

and sales are managed by the hotel reservations team,” he added.

The properties feature high quality furnishings, parquet flooring, an Opus smart home system, separate air conditioning control, LCD televisions, en-suite master bedrooms with king-size beds, en-suite second bedrooms with twin beds, walkin wardrobes, fully equipped kitchens, spacious balconies with spectacular views overlooking the Arabian Gulf, the Atlantis, the Burj Al Arab and the Palm; and an extended terrace space.

Facilities include a choice between seven dining experiences in the resort, access to Anantara Spa, shared leisure facilities such as the gymnasium, temperaturecontrolled lagoon swimming pools, tennis courts, water sports and a kids’ club.

“These apartments are complete. People can move in after the down payment,” Bin Sulayem said. g

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Controversy over Zuma’s ‘palace’ in Dubai

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ontroversy surrounds South African President Jacob Zuma’s alleged ‘palace’ in Dubai as his spokesperson refuted allegations according to African News Agency and other media outlets.

Jacob Zuma, President of South Africa, does not own a palace in Dubai and all reports about the same is ‘fabricated’, Zuma’s spokesperson Bongani Ngqulunga said in a statement.

Zuma did not own any property outside South Africa and had not requested anybody to buy property for him abroad.

Zuma had also not received or seen the reported emails and had no knowledge of them, Ngqulunga said. However, a number of South African and international media had earlier reported that Jacob Zuma’s son owns a palace-like villa at the Emirates Hills – Dubai’s most expensive neighbourhoods that hosts multi-millionaires and the highest number of Rolls Royce cars in the UAE. Dubai is home to a large number of international celebrities, statesmen, politicians and super-rich businessmen who find the emirate’s liberal socioeconomic environment a safe haven to invest.The Sunday Times had earlier reported that Zuma’s friends bought him a luxurious Dubai mansion. g Gulf Property

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Solar panels to power four Majid Al Futtaim malls

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nova – the regional leader in integrated energy and multitechnical services – will supply solar power to four Majid Al Futtaim malls, delivering expected savings of Dh80 million.

Enova’s first solar power deal with Majid Al Futtaim Properties was signed on World Environment Day, the United Nations’ annual initiative to promote sustainability.

The deal is set to cut the four malls’ carbon dioxide emissions by 3,200 tons per year – the equivalent of taking 700 cars off the roads – and will see the technology installed in Dubai’s Mall of the Emirates, City Centre Deira, City Centre Mirdif and City Centre Fujairah, followed

by City Centre Me’aisem and My City Centre Al Barsha.

These solar panels contain photovoltaic cells, which absorb energy from the sun and convert it into electricity. The power generated is then fed directly into the malls’ electrical network. As part of this deal, about 12,500 panels will be installed across the buildings, covering an area of 25,000 square metres, including 1,020 car ports. Feasibility studies are underway with a view to rolling the project out across other assets. The scheme will help Al Futtaim generate 6,000 MWh of energy annually. g

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‘Shift in Dubai’s office supply’

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The secondary market is not recovering due to large amount of existing stock, the report says

ffice supply in Dubai is switching dynamics for the first time in recent history, according to a report.

The combination of economic market conditions and work-live-play developments in the pipeline are early signs of a new era, says Savills in its Dubai Office Market Spotlight.

“The secondary office market is not moving forward towards a recovery in its real estate cycle due to strong headwinds faced from the large amount of existing stock, despite marginal improvements in demand,” the report reveals.

David Godchaux, Core Savills CEO, says: “In this report, we have analysed the evolution of Dubai’s office supply and arrived at the conclusion that the secondary market is unlikely to recover in the near future.”

Out of a total of 94 million square feet of office space in Dubai, 71 per cent or 67 million square feet are estimated to be of grade B & C quality.

This submarket has seen a lot of new supply coming over the past five years, with low levels of absorption, leading to high vacancy rates, above 30 per cent on average.

“Even as macro-economic indicators start improving and demand for grade B & C office space starts increasing, it will still take a lot of time for it to absorb the existing vacant stock,” Godchaux adds.

“Even with an optimistic hypothesis on demand, we estimate that it will take over 1.5 years for half of the total vacant stock to be absorbed; for this reason, we are very cautious about any chance of an upward movement in

secondary market rents in the next 12-18 months.”

“The good news is that the office market seems to be gradually self-adjusting with new prime stock expected to exceed new Grade B supply for the first time in the last 10 years,” Godchaux says.

The report states that developers and freezone authorities have been responding to the growing demand for Grade A stock and this trend is expected to amplify through 2017-2019.

Another positive trend in the office market is diversification, which remains key in aiding absorption figures.

“Furthermore, regeneration activity across older industrial areas is leading to offbeat warehouse-based art centres, start-up incubators and gymnasiums increasing take-up in the district – for example Alserkal Avenue,” Godchaux adds. g

Emaar introduces virtual hotel tour

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maar Hospitality Group, the hospitality and leisure business of Emaar Properties PJSC, has introduced panoramic, 360 virtual tours of its hotels in Dubai.

The virtual tours, captured in high-definition photographs and videos, offer visitors the opportunity to experience the unique value propositions of each hotel, discover its myriad facets and make an informed decision – be it for booking hotel stays, restaurants or pampering oneself at spas.

The 360 virtual tours cover properties under the premium luxury hotel and serviced residences brand, Address Hotels + Resorts; the upscale lifestyle hotel and serviced residences brand, Vida Hotels and Resorts; and the new contemporary mid-scale hotel and serviced residences brand, Rove Hotels.

Olivier Harnisch, Chief Executive Officer of Emaar Hospitality Group, said: “Introducing innovative digital experiences is part of our strategy to further enhance the guest experience.”

“The 360 virtual tours open doors to the delightful and exceptional lifestyle offerings at our hotels, enabling visitors anywhere in the world to make informed decisions and plan their stay in vivid detail. We will continue to explore newer opportunities to strengthen our online engagement with our guests, underlining our commitment to provide value-added customer-centric experiences,” he added.

The 360 virtual tours take visitors through the spectacular architecture that define properties under Address Hotel + Resorts, including Address Boulevard, Address Dubai Marina, Address Dubai Mall, Address Mont-

gomerie, and Palace Downtown. The 360 virtual tours also take visitors through the exceptional ambience offered by Vida Downtown and Manzil Downtown, as well as the three Rove Hotels that are currently operational in central locations across the city – Rove Downtown, Rove City Centre and Rove Healthcare City.

To view, customers can simply log on to the hotel websites. The master-brand pages will take them to individual hotel sites, where they can take the interactive tour.

Each virtual tour, assembled through panoramic photography and videography, will provide all the features of the hotel in detail.

From the exteriors to the interior, whether it is the lobby, restaurants, lounges, spas, event spaces, or the intricate details of rooms and suites, they can experience it all online. g

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Wasl Group launches Warsan project

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asl Asset Management Group, one of the largest real estate management and development companies in Dubai– has announced a new project in Warsan, launched as part of the company’s strategic preparations for Expo 2020.

The new project is expected to deliver the much-needed accommodation for hospitality staff.

The Warsan project will comprise 26 buildings in a resort-style layout and is distinctly different from other developments by the fact that it will provide hospitality employees with 3,866 residential units spread over a built-up area of 2.6 million square feet.

The units will be distributed between 3,380 shared rooms, 360 studio units and 126 one-bedroom units – all placing hospitality staff within easy reach of the many new hotels being developed to meet the demands of Expo 2020.

The Warsan project will cover 160,000 square feet and consist of 26 buildings in a resort-style layout, featuring recreational facilities including green lawns, swimming pools, a health club, and state-ofthe-art sports stadiums where hotel staff can play handball and basketball.

The project will be complete in October 2020. g Gulf Property

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REALTYBYTES Abu Dhabi UPC to bring all services online

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he Abu Dhabi Urban Planning Council (UPC) has launched six major e-Services as part of its e-Services Transformation Project, with a fresh new website.

In accordance with the Abu Dhabi Plan, the UPC has enhanced government processes and customer user-experience at the click of a button, aligned with the Digital Transformation Agenda in the Emirate of Abu Dhabi.

The UPC’s six e-Services and impressive library of manuals and resources are now available on its revamped website, www.upc.gov.ae, which serves as Phase 1 of the e-Services Transformation Project.

One of the e-Services in the initial roll-out are requests for Estidama training registration, which ensures stakeholders adhere to the UPC’s mandatory Pearl Rating System for the design, construction and operation of Complete Sustainable Communities.

This project is being rolled out in four phases and once complete, will offer an entirely multichannel digital experience in accessing UPC’s tools, services and resources.

With a clean streamlined look and accessible digital services, the website will act as a ‘one-stop shop’ for developers, other Government entities, students and consultants. g

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Champions Tower units handed over Mahmood Shaikhani, Managing Director of Shaikhani Group, spearheads the development and delivery activities to ensure customer happiness

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ubai-based developer Shaikhani Group has handed over 100 units of Champions Tower 1 to its customers, a company statement said.

Families are in the process of moving in after getting the necessary No-Objection Certificates (NOC) from the concerned departments. As many as 48 families have moved in till date.

The group announced the delivery of 135 units in the Dh150 million Champion Tower I in February this year.

The delivery of these units follows the handover of 224 units last year, raising the number of deliveries to 359 apartments in a year.

The group has five projects that are under construction, including three in Dubai Sports City and one in Jumeriah Village Circle. They are yet to award any contracts this year.

“As a customer-centric responsible property developer, we continue to try to exceed our customers’ expectations. That’s why delivery of projects is very important to us. We are targeting the handover of three projects by the end of 2018,” said Mahmood Shaikhani, Managing Director of Shaikhani Group.

The 15-storey Champion Tower I is designed by Al Sarh, a leading architectural design firm and with this flagship series of projects, the UAE-based real estate group aims to set up state-of-theart facilities supporting both luxury living and a healthy lifestyle.

Spanning a total built up area of 114,124 square feet, Champions Tower I has 49 studios, 50 one-bedrooms, 30 two-bedrooms and six three-bedrooms. It has 135 car parks.

The Tower is also equipped

with a swimming pool, spa and gymnasiums, underground parking, 24-hour security and three high-speed elevators.

The Shaikhani Group has three other freehold mixeduse developments planned for Jumeirah Village South.

These include the Dh150million ($40.8 million) Gardenia Residency, a four-storey mid-rise (with a basement and ground level) comprising 132 studios, one-, two- and three-bedroom units, lofts and retail space; the Dh200million ($54.45 million) Gardenia Residency III, featuring three basement levels, a ground floor, three podium levels and the Dh320-million ($87.12 million) Gardenia Residency IV, comprising three basement levels, a ground floor, four podium levels, 27 upper levels and a retail level offering studio, one-, two- and three-bedroom units, and retail spaces. g

GCC investors eyeing real estate in Jordan

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With healthy economic growth projected in 2017 and its close proximity to neighboring and global markets, Amman, the thriving Jordanian capital, has become a highly competitive investment target for GCC investors.

The Campbell Gray Living project, a mixed-use project offering residences, offices and retail space as well as a luxury hotel, offers a unique opportunity for Jordanians and GCC nationals to expand their asset portfolio in Jordan.

Campbell Gray Living is one of the region’s most stylish developments, bringing a contemporary edge to Jordan and rivaling that of any luxury development in the world’s largest cosmopolitan cities such as New York or London.

3.3%

expected growth of Jordan economy in 2017 It is scheduled to open in 2019.

According to the International Monetary Fund (IMF) Jordan’s economy is growing, with the Gross Domestic Product (GDP) expected to reach 3.3 per cent in 2017 and 4 per cent by 2019, which in turn will positively enhance the property and rental market in the capital.

Jordan’s business environment has experienced significant changes in both its complexity and competitiveness in global markets. High levels of trade and investment freedom continue to sustain market openness, keeping the economy competitive.

Locating to Jordan also allows investors to benefit from many free trade agreements allowing access to regional and international markets.

Campbell Gray Living Amman is in the heart of the city’s new downtown area, Abdali, the city’s hottest new development and the most sought-after.

World renowned, award-winning firm Architecture-Studio, Paris, has designed the iconic building façade. It has been developed by Al Seraje Real Estate, a subsidiary of the Audeh Group. g

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Allsop gets ownership of in-house mortgage

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llsopp & Allsopp, one of the largest residential real estate firms in Dubai, has acquired full ownership of InHouse Mortgage Services. This acquisition means that Allsopp & Allsopp will now offer a full range of carefully controlled property services that clients are looking for.

The service will be available from their website.

Allsopp & Allsopp is working with over 20 of the market's main mortgage lenders in the UAE. These include Mashreq Bank, FGB, and RAK Bank.

The team at Allsopp & Allsopp who are CeMAPcertified, qualifications recognised by the UK financial conduct authority, will guide cutomers through the mortgage process in a stress-free manner. Allsopp & Allsopp CEO Lewis Allsopp, said “A number of local and international banks that include Standard Chartered, ADCB and ADIB have offered us exciting discounts to pass on to our clients, so that there is a huge advantage in using Allsopp & Allsopp for mortgage financing.”

“We feel that any advantage needs to be met with open arms, so that our clients can receive a tangible benefit. Our goal is to offer clients a real sense of the market. It's our aim to give Dubai mortgage buyers the best available knowledge,” he added. g Gulf Property

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Dubai Sports City, BMTC join hands for solar power

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ubai Sports City and Bahri & Mazroei Trading C o m p a n y (BMTC), the region’s leading provider of lighting, electrical and water solutions, have entered into an agreement to provide solar power for the community development.

The project will include the replacement of existing lighting, designing of uniform lighting levels, adding new lighting poles, supplying, installing & commissioning of LED luminaires, solar panels, and controls as well as maintaining the complete system.

Additionally, solar energy will be supplied to the advertising panels on the street lighting poles. The ultimate goal of the project is to reduce dependence on energy-intensive traditional street lighting solutions.

Dubai Sports City will be provided with LED lighting, dimming controls and remote monitoring, including proactive maintenance alerts with a 100 per cent pure solar powered solution.

The contract is based on the ESCO model which includes financing over a long-term period, and the payback is based on the savings.

This brings DSC and BMTC into a long-term partnership, during which BMTC will be responsible for maintenance and service of the system. g

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Viceroy JV is 40% complete

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kai, the Dubai-based real estate and hospitality group has completed 40 percent of the construction of its Dh1.28 billion (US$348.4m) Viceroy Dubai Jumeirah Village hotel and residences. The development is on track for a planned opening in 2018, a company statement said.

China State Construction Engineering Corporation Middle East (CSCEC ME), the project’s main contractor, has completed the structural work, partition and block walls, and MEP works up to level 19, the statement added. A show mock up wing, comprising a two-bedroom and one-bedroom apartment and two hotel

rooms, is also now available for viewing.

“Completing 40 per cent of the Viceroy Dubai Jumeirah Village marks a significant milestone for us, and demonstrates our pledge to complete this project on time in spite of the fire last August,” said Nabil Akiki, Chief Executive Officer (CEO) of Skai.

“We have recovered much faster than expected and remain committed to opening in Q4 2018,” he added.

“Over the course of the next year, we will be pushing ahead to complete the structural works for one floor a week, ensuring we are on track to welcome homeowners and guests in Q4 2018,” said Yu Tao, President and CEO of CSCEC ME.

Once complete, the development will comprise 247hotel rooms and suites, 221 one and two-bedroom hotel apartments and 33 four-bedroom hotel apartments, all with private pools and jacuzzis.

The 60-storey tower will feature breathable architecture that allows sunlight to shine through the core of the tower and a vertical microclimate design with over half a million square feet of flora.

Lush green balcony gardens and 271 sky-high swimming pools and Jacuzzis will add to the sense of nature while floating bathtubs, floor-toceiling windows and panoramic views will provide the ideal backdrop. g

Azizi starts Dh12bn Riviera at Meydan 1

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zizi Developments, a leading real estate developer, has started the construction works on Azizi Riviera, an urban community inspired by the vibrant French Riviera.

The Dh12 billion waterfront development that is situated on the banks of the Dubai Canal is being developed by KCC Engineering and Construction Ltd. and Actco General Constructing Co LLC. Situated in the prestigious Mohammed Bin Rashid Al Maktoum City Meydan One project, Azizi Riviera comprises 69 mid-rise residential buildings of 13,000 one-bedroom, two-bedroom and studio apartments, a mega integrated retail district and a four and a five-star hotel.

“As one of the most ambitious real estate projects in the UAE, our strategic partnership with Azizi aims to deliver high-end living spaces such as Azizi Riviera to meet existing market demands.

The real estate market in the UAE and Dubai in particular

is seeing growing interest from international investors and we remain confident of the dynamism of the sector and its long term prospects,” said Saeed Humaid Al Tayer, Chairman and CEO of the Meydan Group.

The architecture, while drawing inspiration from the French Riviera waterfront lifestyle, will also contain versatile, contemporary elements. Outdoor recreation and proximity to the business hub of Dubai and other leading attractions, including the Meydan One Mall and the Meydan Racecourse, home of the Dubai World Cup, the world’s richest horse race meeting, further contribute to making it an enviable option for buyers.

“The start of the construction of the Azizi Riviera project is a landmark milestone for Azizi Developments, marking our foray into creating urban living spaces which will revolutionise the meaning of community living in Dubai,” said Farhad Azizi, CEO, Azizi Developments. “The design,

architecture and scale of the project reflect our commitment to creating new quality living spaces in strategic locations across Dubai that especially appeals to local market tastes.”

A key feature of the new development is a mega integrated retail district which will consist of high street bridge brands, leisure and entertainment options. The overall development will also offer access to long paved pedestrian paths and water transport, yachting facilities and a proposed marina, among others.

Azizi Riviera represents the first in a series of urban neighbourhood projects that Azizi Developments is planning to develop in the Meydan One mega-development, following the strategic partnership with Meydan Group announced earlier this year.

The project was conceptualised realising the potential of community living and its capability to drive the resurgence of the Dubai property market. g

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PI delivers Dh97m worth of homes

roperties Investment LLC, a joint venture 70 per cent owned by Dubai Investments PJSC and 30 per cent by Union Properties, said, it has handed over of 76 townhouses in the stage 1 of its Green Community Dubai Investments Park – West Phase III in line with its scheduled time frame.

The Dh97 million project, covering an area of 1.48 million square feet, comprises a total of 210 townhouses being built in three stages, including 122 four-bedroom and 88 three-bedroom townhouses, 16 duplex apartments, retail units, recreational centres, swimming pools, squash court and landscaped areas.

The stage 2 will include 100 townhouses and is expected to be handed over by October 2017; and the stage 3, comprising 34 townhouses, 16 apartments and three retail units, is expected to be completed by the end of 2017.

The total built-up area of the project is 1.01 million square feet and sellable area is 976,718 square feet.

Properties Investment is also working on expanding The Market shopping arcade next to the Green Community DIP. Additional 200 retail units will be developed across 65,000 square feet as part of the expansion. g Gulf Property

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Bloom begins work on Abu Dhabi’s Soho Square

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loom Properties, a Bloom Holding business specialising in the development of integrated and sustainable communities, has commenced the main construction work at its ‘Soho Square’ urban development on Saadiyat in Abu Dhabi.

It has appointed Emirates Link Maltauro, a leading construction group in the UAE, to carry out the main development work.

Taking shape in the University neighborhood of Saadiyat in Abu Dhabi, Soho Square is the second mixed-use development by Bloom Properties on Saadiyat. It encompasses world-class residential, retail and commercial spaces located in proximity to the New York University Abu Dhabi campus and major upcoming tourist attractions.

Sameh Muhtadi, CEO, Bloom Holding, said: “Given the high demand for quality urban housing with high-end amenities on the island, Bloom is committed to the timely delivery of the project that will ensure compliance with best-in-class construction standards.

Bloom is keen to strengthen its footprint in the Abu Dhabi real estate market by offering investors the best real estate products in the most premium locations.” g

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Bloom awards Dh1 bn contracts

Sameh Muhtadi, CEO of Bloom Holding is making sure Bloom projects are delivered on time

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loom Properties, a Bloom Holding business specialising in the development of integrated and sustainable communities, has awarded five construction contracts worth over Dh1 billion since the beginning of 2017, a company statement said.

Bloom Properties selected leading construction companies to execute its projects. It appointed General Construction Company for the main construction work of Stella Maris, Becon Construction for Bloom Heights, and Emirates Link Maltauro for Faya at Bloom Gardens and Soho Square. Airolink has been contracted to build Bloom Education’s Brighton College UK and Dwight School New York schools in Dubai.

Sameh Muhtadi, CEO of

Bloom Holding, said: “The awarding of contracts demonstrates our commitment to delivering all our announced projects on schedule. We have appointed reputed contractors and suppliers to ensure strict adherence to the highest quality standards through all stages of construction. These contracts mark a key step towards developing unique urban destinations with a sense of place that cater to the needs and desires of the community.”

With most developments scheduled for completion in less than two years, work on the sites is progressing rapidly. Among the awarded projects, Stella Maris, is a luxury waterfront development in Dubai Marina that will comprise 313 high-end residences ranging from one- to

three-bedroom units, as well as four-bedroom duplex apartments and penthouses.

The 52-storey development will be conveniently located within walking distance of public transportation options.

Another project in progress is Bloom Heights, a mixed-use development in Dubai’s Jumeirah Village Circle (JVC) that will consist of two highrise towers with a shared podium. Boasting easy access to all major roads, Bloom Heights will offer a total of 686 residential units from studios, to one, two and three-bedroom apartments.

Bloom Properties has also commenced work on Faya, the fourth phase of the Bloom Gardens community, with 132 town homes laid out in 28 four-unit clusters and four five-unit clusters. g

UAE economy to bounce back: IMF

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he UAE’s economic activity is expected to strengthen gradually in the coming years, the International Monetary Fund (IMF) said in a latest report.

“Non-oil growth is projected to rise to 3.3 per cent in 2017 from 2.7 per cent in 2016, reflecting increased domestic public investment and a pickup in global trade,” it said.

“Over the medium term, nonoil growth is expected to remain above 3 per cent, supported by accelerating investment in the run up to the Expo 2020. The planned VAT introduction in 2018 is not expected to have a significant adverse impact on growth.”

Economic performance was subdued during most of 2016. Together with weaker oil prices and slower oil output growth, the postponement of some public infrastructure projects and a slowdown in global trade caused growth to moderate to 3 per cent from 3.8 per cent in 2015, it said. Inflation eased to 1.8 per cent from 4.1 per cent in 2015, reflecting softer domestic demand

and declining rents. Despite continued fiscal consolidation, lower oil revenues widened the overall deficit to 4.3 percent of GDP from 3.4 percent of GDP in 2015.

Likewise, the current account surplus shrank to 2.4 percent of GDP from 4.7 percent of GDP in 2015. Although impairment charges rose amid the economic slowdown, banks remained well capitalised and liquid.

“Over the medium term, nonoil growth is expected to remain above 3 per cent, supported by accelerating investment in the run up to the Expo 2020. The planned VAT introduction in 2018 is not expected to have a significant adverse impact on growth,” IMF said.

The economy is weathering the post-2014 oil shock well. With lower oil revenues, fiscal and external positions weakened, financial conditions tightened, and growth slowed. The weaker economy elevated risks of bank loan delinquency, requiring higher provisioning. Yet the UAE’s financial buffers, safehaven status, sound banks, and diversified and businessfriendly economy are helping

it cope with the shock.

Growth is projected to recover over the next few years, as the pace of the necessary fiscal consolidation eases, global trade regains momentum, and investment, including for Expo 2020, accelerates. This outlook is subject to downside risks, stemming mainly from a further sustained decline in oil prices, tighter financial conditions, a rise in protectionism and an intensification of regional conflicts.

The key policy goal is to foster economic adjustment to the new oil market realities. Ample fiscal space allows deficits to decline gradually while mitigating the adverse impact on the economy and the financial sector.

Following the rapid pace of fiscal adjustment in 2015‒16, the projected pause in consolidation this year is appropriate as it would reduce spare capacity. It needs to be followed by a gradual but steady tightening over the medium term as growth strengthens. Complementing recent subsidy reforms, a timely introduction of the VAT would be another major achievement. g

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Al Thuriah hands over Sahara 4

l Thuriah Properties, the UAE’s premier property developer that specialises in high-rise residential towers and communities, announced the handover of its 33-storey Sahara 4 Tower in Al Nahda. Freehold owners have begun to occupy the 300 apartments at the tastefully designed and strategically located tower.

Developed at a cost of Dh295 million, Sahara Tower 4 consists of spacious and elegantly designed one, two, three and four-bedroom units built with top-of-the-range specifications and fittings.

Development of the project began in April 2014 and all units were sold out within 18 months of launch. Sahara Tower 4 offers world-class amenities at affordable and attractive prices. Each spacious apartment is designed to cater to Arabic customs and culture with separate kitchens and private and distinct bedrooms, living and dining rooms.

At the ribbon-cutting ceremony to present the Sahara Tower 4, Raymond Khouzami, CEO of Al Thuriah said: “This bespoke development offers a luxury lifestyle and appeals to discerning clients who value superior interiors and spacious apartments at prime locations.

Sahara Tower 4 raises the bar for quality and affordability in the UAE property market.” g Gulf Property

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Abu Dhabi to create 30-km waterfront community

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he government of Abu Dhabi, through its Urban Planning Council (UPC), is planning to transform Hudayriat Island and create a 30-kilometre waterfront community on the 3,000hectare island southwest of Abu Dhabi Island.

In line with the Abu Dhabi Plan, the Hudayriat Island Master Plan will comprise a completely sustainable community with a diverse range of facilities. This will include allocating several plots for UAE nationals, who will benefit from the Emirati Housing Programme.

An accessible waterfront spanning an impressive 30 kilometres will be at the heart of the mixed-use development. It will take up to 10 minutes to walk from the waterfront to any point on the island.

Other key features of the project include recreational activities, a public shoreline, a green mobility network and a rich natural environment.

Abdulla Al Sahi, Planning and Infrastructure Executive Director of the UPC said: “This Master Plan is one of many that demonstrate our commitment to benefit the community. By utilising and enhancing the environmental features in this area of Abu Dhabi, this development will raise the standard of living and enhance Emirati culture.” g

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DLD trustees help save Dh45m a year

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he Real Estate Registration Trustees Offices, monitored by Dubai Land Department (DLD) offer annual savings of Dh45 million through 18 offices located across Dubai, a statement said.

These offices represented around 23 per cent of the department’s total revenues in 2015 and this figure increased to a record 33 per cent in 2016, according to Saad Abdulla Al Hammadi, Director of Finance and Administrative Affairs at DLD..

Al Hammadi commented: “The launch of the Real Estate Registration Trustees Offices has helped DLD to achieve an annual saving of approximately Dh45 million through 18 offices located across Dubai. The success of this experiment is clear and the service is increasingly popular with customers as it provides them with convenient services of the highest global standards.”

The cost of sales services has been reduced by 53 per cent, while mortgage services and the mortgage clearance service now cost 67 per cent and 78 per cent less respectively. One of the most important features of the offices is that they provide customers with services outside of DLD’s official working hours, which ensures greater flexibility for clients and allows them to complete their transactions more conveniently.

Saeed Al Khussaibi, Director of Monitoring at the Real Estate Registration Department, commented: "The aim

Saeed Al Khussaibi, Director at Dubai Land Department

of launching the Registration Trustees Offices was to introduce a system that allows numerous offices in Dubai to register real estate transactions through multiple branches that operate outside of DLD’s working hours and business days.”

Al Khussaibi added: “The system has already helped to provide real estate registration services on a significantly wider scale in the Emirate of Dubai. It has also contributed to increasing the speed and effectiveness of investor procedures by removing the need for them to book appointments and wait at DLD’s headquarters.”

Al Khussaibi highlighted that the most important benefit achieved by the system has been raising the quality of DLD’s services by allowing customers to manage essential real estate procedures both outside working hours and in multiple locations

across Dubai. As a result, the system has also helped to reduce the burden on DLD staff and accelerate the speed of transactions.

The system provides registration services for sales, mortgages, tenancy agreements concluding with acquisitions, alongside a range of other DLD procedures. The Registration Trustee simply enters the procedure data, issues the initial contracts, and then sends the procedure to DLD with the required documents.

To ensure the highest level of accuracy, the procedures are checked against DLD regulations before approved contracts are issued and delivered to investors by courier services within 48 hours of receiving the transaction.

This removes the need for investors to follow-up with Dubai Land Department and has created a seamless and highly efficient system. g

Xanadu’s project delivery on track

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anadu Real Estate Development, a Dubai-based property developer, announced the delivery of nearly 200 luxury villas and townhouses with a development value exceeding Dh750 million, part of the Dh8 billion worth of projects it helped deliver with its partners over the last six years.

These include 130 Townhouses at Jumeirah Village Circle, worth Dh300 million and 68 luxury villas at Jumeirah Golf Estates, worth Dh450 million. The projects were handed over recently.

The company has been partnering with property developers by undertaking the management of stalled projects and completing them by investing its own resources.

Following the global financial crisis of 2008-09, many property developers found it difficult to carry on with projects due to tough market conditions marked by the absence of buyers and investors.

While some developers had the ability to continue with projects, most were not lucky, resulting in a good number of projects being stalled.

In 2010, Xanadu entered the real estate market with a vision to change it and help revive and manage stalled projects.

It started with a cluster of townhouses and delivered it with the help of the previous developer.

Gradually, Xanadu picked up a number of challenging projects, infused capital and delivered

them. This way, it helped revive, manage and delivere Dh8 billion worth of projects – that has a far-reaching impact in the emirate’s real estate sector and economy.

“Dubai’s real estate market requires a quite different set of developers as it matures and demand is likely to be driven by real property buyers,” Adel Al Breiki, Founder of Xanadu Real Estate Development, said. “Therefore, committed customer-centric developers with a focus on quality and timely delivery will be crucial differentiator for successful developers,” he added.

Xanadu has pioneered the concept of partnering with developers to turnaround challenging real estate projects. g

REALTYBYTES

Aldar to build Dh1 bn media city in Abu Dhabi

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ldar, the largest developer in Abu Dhabi has won a Dh1 billion contract to build a new media city in Abu Dhabi, twofour54 said in a statement.

An agreement to this effect was signed between Maryam Al Mheiri, CEO of Media Zone Authority and twofour54, and Mohamed Khalifa Al Mubarak, CEO of Aldar Properties.

Set to cover an initial gross floor area (GFA) of 95,000 square metres on the southern end of Yas Island, twofour54’s new home will feature state-ofthe-art offices, TV studios and retail. Over time the GFA is expected to grow to over 300,000 square metres.

The development will be delivered via a Build-Operate-Transfer (BOT) structure. This supports the Abu Dhabi vision of a public-private partnership by capitalising on Aldar’s private sector expertise and equity to develop strategic projects, and attract foreign direct investment to the Emirate.

Her Excellency Maryam Al Mheiri, CEO of Media Zone Authority and twofour54, said:“Over the past nine years, twofour54 has grown from strength to strength to become a leading regional hub for media and entertainment content. This success is due to the holistic ecosystem that we have carefully nurtured.” g Gulf Property

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REALTYBYTES

Shapoorji Pallonji wins contract for Palm Gateway

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hapoorji Pallonji Mideast LLC, a regional subsidiary of India’s Shapoorji Pallonji Group has secured a US$410 million (Dh1.5 billion) contract to build Palm Gateway towers consisting of 1,265 apartments, to be constructed at the entrance of Dubai’s iconic Palm Jumeirah master development, developer Nakheel said in a company statement.

The Palm Gateway is a new, three-tower residential, retail and beach club complex at the foot of the world-famous Palm Jumeirah. Work will begin in the second quarter of 2017 and take two-and-a half years to complete.

The Palm Gateway includes 1,265 luxury apartments across three high-rise buildings – the tallest topping 285 metres – to be constructed on top of the existing Palm Monorail terminal, which includes 14 levels of parking spaces. Units range from one to three bedrooms and will be available on lease.

Ali Rashid Lootah, Nakheel Chairman said, “We look forward to delivering another iconic, landmark project at the entrance to Palm Jumeirah through this firsttime collaboration with Shapoorji Pallonji.”

Shapoorji has been active in the region for over 45 years, delivering many prestigious projects. g

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Student housing gets a boost in Dubai

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ENBD REIT has acquired the 424- bed property on a transaction value of Dh120 million

NBD REIT (CEIC) Limited, the Nasdaq Dubai-listed Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management, has acquired Dubai’s first purpose-built student residence by Global Student Accommodation (GSA).

This acquisition highlights the growing demand for student accommodations in Dubai, where only a handful of branch campuses and local universities offer accommodation on campus at present.

With the UAE government's focus on higher education, tertiary education will

be one of the fastest growing areas in the sector. As such, more and more overseas students will be taking up residence in the UAE, upping the need for more student housing options.

The property, Uninest Dubailand, was built in 2016 and is the first of its kind in Dubai. It is in close proximity to Dubai Academic City, serving students attending more than 30 institutions across the city. ENBD REIT acquired the 424-bed property from the global leader in student accommodation on a sale and leaseback agreement at a transaction value of Dh120 million.

The acquisition is ENBD

REIT’s first in the student accommodation segment, and part of a strategy for diversifying its asset portfolio. As part of the transaction, GSA has entered into a 7-year lease.

Following the acquisition, the ENBD REIT property portfolio’s total value is now USD 349 million, with a net asset valuation of USD 297 million, or USD 1.17 per share. Responsibility for managing the property will remain with GSA’s operations team, under the Uninest Student Residence brand. The property has a rooftop swimming pool, a café, a gym, and an entertainment room. g

Araco begins work on Dh140 mn project

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The six-tower residential project is expected to be delivered in November 2018

he ground breaking ceremony of the new six-tower residential complex designed by Abdul Rahim Architectural Consultants (Araco), located in Jumeirah Village Circle (JVC) is complete, a statement from the company said.

Located close to Al Barsha Fourth, the six building project is valued at Dh410 million, and covers an area of 100,000 square feet. All necessary building permits have been issued and construction work has begun, the statement added.

Dubai-based HNI Clients Real Estate is the developer of the project. It is expected

to be delivered in November 2018.

Rahim Lari, Araco General Manager, said, “The six buildings will each comprise a ground floor, four levels of parking above the ground, 15 floors and the floor area.

The buildings will add a total of 772 apartments to JVC, consisting of 75 studio units, 655 one-bedroom apartments and 42 two-bedroom apartments. The development will offer residents a view of the gardens and parks in JVC and will also provide integrated services such as kids play areas, fitness spaces, swimming pools, and parking for all residents.”

Construction on all six sites will begin simultaneously under Araco’s supervision. In addition to this role, Araco’s scope of work includes architectural design, MEP and structural engineering, as well as obtaining the necessary licenses from all relevant bodies.

Araco has already completed designs for the buildings, adhering to environmental and safety standards, in compliance with those adopted in the UAE and internationally. Further, Araco has obtained approvals for all plans for the buildings and the necessary licenses from the relevant authorities in record time. g

REALTYBYTES

DIP gets 280 sub-tenants in first four months of ‘17

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ubai Investments Park (DIP), a wholly-owned subsidiary of Dubai Investments PJSC, said that as many as 280 new sub-tenants leased its premises between January and April 2017, reinforcing its reputation as the preferred and most sought-after business destination in the region.

New leases during the period under review included 219 warehouses, 38 offices and 23 commercial units, bringing the total number of operational companies within DIP to over 4,880. These cover a wide range of industries from medium to light industrial units in aluminium, steel, chemicals, pharmaceuticals, textiles, plastics, oil & gas, construction, building materials and contracting sectors.

The leases included new and old tenants, who expanded their warehousing space within DIP. These also included the likes of Transguard Group LLC, Azadea Group, ETA Melco Elevators Co LLC, Hilti Emirates, Chef Middle East, among others. Over 95 per cent of DIP land is leased and 98 per cent of its industrial zone is occupied.

The surge in tenants reflects the growing prominence of DIP, driven by its strategic location, state-ofthe-art facilities, businessfriendly environment and world-class logistics. g Gulf Property

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OPINION

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MISUHIRO FURUSAWA

Deputy Managing Director International Monetary Fund

he World Economic Outlook released in April upgraded our forecast for global growth to 3.5 per cent this year and 3.6 per cent in 2018. That is up from 3.1 percent in 2016. We will release an updated WEO forecast next week in Kuala Lumpur.

Asia’s outlook remains the strongest in the world — and has been the most important contributor to global growth for several years. Policy stimulus continues to support domestic demand in China and Japan. Meanwhile, investment in infrastructure and public services is supporting growth across Southeast Asia.

Growth in the region is expected to reach 5.5 percent in 2017, after slowing last year. Most importantly, this recovery reflects stronger expansion of world trade.

These are very positive developments. But Asia faces significant challenges. In the short run, there is uncertainty about the direction of economic policy in some advanced economies, especially the risk of inward-

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Mobilisation of revenue crucial looking policies that could affect regions like Southeast Asia that have benefited from global economic integration.

Although the normalisation of Fed policy so far has proceeded smoothly, it still poses a risk. This is especially the case for borrowing costs in regional economies where private debt has risen over the past decade.

There also is the potential for renewed market volatility — both because of the changing monetary conditions and unexpected turns in China’s economic rebalancing.

Then there are the longerterm challenges. These include the trillions of dollars in infrastructure investment that will be required if Asian countries are to achieve advanced economy status.

There will also be demands for increased spending on education and other public goods to make growth more inclusive. In addition, some countries will need to address the implications of demographic change, especially the rapid aging of populations that carry implications for health care and pension spending.

Finally, many Asian countries face the policy challenge of sustaining and accelerating inclusive growth at a time of lower commodity prices. This will require further economic diversification.

The Demands of Growth

These challenges all will cost

money — and that points to the central importance of domestic revenue mobilisation.

Increased revenue and public spending are essential catalysts for growth — at a time when the demands for fiscal resources are only growing.

Revenue mobilisation already is high on countries’ policy agendas. And it is not just a matter of development.

It is essential to ensuring the macroeconomic stability that has been central to your success. The challenge you face is very clear. Compared to other regions in the world, tax revenues are relatively low in Asia. Some see this as something of a tradition in this region. But this comes at a cost. Analysis recently conducted by our Fiscal Affairs Department suggests that there is a minimum tax-toGDP ratio associated with a significant acceleration of growth and development.

We estimate threshold at a ratio just below 15 percent.

That is largely in line with the Fund’s standard recommendation.

Where does Asia stand?

On average, most countries in this region consistently fall below a ratio of 15 percent.

Simply put, that is likely to be insufficient for reaching the goals to which so many of your countries aspire.

Strengthening revenue mobilisation is likely to require a wide range of measures including both policy and administration. In domestic taxation, it could involve making the value-added tax more effective, for instance, and devel-

oping property taxation.

But our focus at this event is the international dimension — relating to cross-border trade and investment.

At a time of change in the global tax environment, there is a wide-ranging reassessment of tax policy involving issues like corporate tax competition, cross-border, legal tax avoidance, and illegal tax evasion.

The sluggish global growth of recent years and intense competition for foreign direct investment has amplified these trends. We are living through what often looks like a race to the bottom in which countries compete — to the advantage only of investors.

In this region, as in others, a lack of coordination among governments has intensified this trend. The result is being felt on the bottom line, with pressures on much-needed government revenue.

In conclusion, this region has made extraordinary economic progress. A future built on sustainable and inclusive growth will depend on advances in many areas. Cooperation will be one foundation stone for this progress—including on tax issues.

Revenue mobilisation can provide the resources needed to advance the economies of Southeast Asia and help meet important social objectives. Inclusive growth, resilience, and cooperation: these are the goals you need to keep in mind while addressing the issues attached to international tax policy. g

Affordability matters most T

his year’s Cityscape Global Exhibition and Conference is forecast to be the largest yet and comes at a time when Dubai’s Real Estate industry is expected to start entering a cyclical growth phase in the lead up to the World Expo 2020.

The importance of Cityscape Global cannot be overstated. As with many exhibitions, it provides a concentrated and focused forum which allows the industry to showcase its vision and capabilities and demonstrate what shape Dubai will take in the future. But Cityscape is much more than that.

Cityscape Global is an open invitation for all stakeholders to understand, evaluate, participate and prosper in an industry that continues to literally change the shape of Dubai. It is a meeting place of some of the biggest and brightest minds representing all stakeholders in the industry and a confluence of opinions, ideas and opportunities which are shared, debated and developed. It allows stakeholders to gain a macro sense of industry direction and a micro understanding of the various elements that will shape the industry going forward.

For buyers and investors, there is no better place to gain an appreciation of the myriad of opportunities that are on offer, but the sheer scale of the exhibition can become a little overwhelming, especially when you are

looking to invest.

As a general theme for this year’s Cityscape, I will be advising most of my investors to look for value opportunities in the affordable housing segment, particularly in the Dubai South areas, as this segment in this location is likely to be the subject of some very attractive easy payment plans to further enhance affordability and, to some extent, mitigate risk.

This segment has outperformed its more luxurious alternatives for some time now and continues to show lots of potential, even through the recent cyclical correction. Affordable properties will continue to be on high demand as Dubai’s population growth gains momentum during a period of expected strong economic growth leading up to the end of the decade. And while the value is irrefutable, the risks associated with investing in the affordable segments of the industry as opposed to the luxury segments are much lower. Demand for affordable accommodation will continue to grow as Dubai’s population swells in the run up to the Expo. As Dubai continues to grow, so does the need for affordable housing.

Yet, although I see great value in investing in the affordable segment, it doesn’t mean some interesting opportunities won’t appear in other segments as well.

So, while you might focus on identifying opportunities in the affordable segment, you

need to keep an open mind and be wary of unique opportunities that may be present.

I always advise my clients that the best way to get the most out of the event, is to canvass all the interesting opportunities on display and gradually yet efficiently establish a short list of the best opportunities.

Establishing such a list from an exhibition as huge as Cityscape is not easy and requires a disciplined approach. This is where a property asset management professional can assist..

Why? It’s important to understand what factors are going determine the potential of any investment. For property, these factors include everything from macro level influences such as global economic performance and policies, geopolitical issues, currency rates and oil prices to more regional or local factors such as industry supply / demand levels, consumer confidence, government policy and regulatory framework, industry cycles and liquidity in the marketplace.

So, in reality, a lot of the work in ensuring that investors and potential buyers make the most of their Cityscape experience is actually done beforehand in preparing an understanding of what the overall investment environment looks like.

This enables a more efficient and focused assessment of all that is on offer.

But in addition to understanding the investment en-

OPINION

MOHANAD ALWADIYA

Chief Executive Officer of Harbor Real Estate, Senior Advisor and Instrucor at the Dubai Real Estate Institute

vironment, it’s important for the investor to understand why he or she wants to invest in property and what the investment objectives are.

Too many investors formulate the answers to these questions “on the run”, once they are traipsing around the exhibition. This lack of preparation just leads to confusion and ultimately, poor decision making.

Every industry has its shows, whether it’s the myriad of motor shows held around the world, film festivals, fashion events, airshows and the property industry is no different. What many don’t understand is that Dubai’s Cityscape Global has established itself as one of the best Real Estate and Property events globally… and its right on our very own doorstep!

So, for those of us with a passion for the industry, it is going to be an exciting 3 days. It always seems to end too early! g Gulf Property

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OPINION

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PRABHAKAR R. RAO

Joint Managing Director Gemini Property Developers

s Dubai’s residential property market enters a new phase where strong supply and weak demand turns it into a buyers’ market, the choice of the end-users once again will dictate how the developers and sellers react to their needs.

More than 2,600 residential units were completed during the first quarter of this year and a further 28,000 units are at various stages of construction expected to be delivered by property developers by the end of 2017 – which needs to be absorbed by property buyers and investors. Even if 50 per cent of these are delivered by the rest of the year, the total deliveries would cross 16,500 in 2017 – that is broadly in line with the recent years’ sectoral performance.

Market analyses show that the rate of decline in sales and rents have declined, meaning that the market has approached the bottom of the cycle – and the prices might not go down further.

Therefore, a buyer could not have a better time to buy a

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Quality & delivery key to gain trust property in Dubai – in terms of pricing.

The key for all developers would be to find buyers for every home delivered. That’s why a number of developers are continuing their broad marketing campaigns to attract more buyers towards them.

According to market reports, property prices have been softening since 2015 and is hitting rock bottom – low enough to become lucrative for end-users. However, the middle-income group and those with household income within the Dh15,000Dh25,000 bracket are yet to enter the market big time. If the number of the vacant homes increases, buyers might enter the market en masse to snap up large inventory. That is yet to happen. So, till that happens, the property prices and buyingselling activities will be driven by the end-users’ choice.

Therefore, quality of the property, location, timely delivery, price and payment plan will determine which properties sell and which doesn’t.

As such, most property developers have made strategic moves – either by reducing price, waiving the 4 per cent property registration fee, extended payment plans or attaching a luxury car for every home purchase – to attract property buyers.

However, for every enduser, the most important aspect of a property is the location, quality of design, finishing and price. It is important for them to call the house their home – sweet

If mortgage rules are relaxed and if property developers extend the payment plan for end-users, we believe, the middle income group might be able to enter the property market in a big way – that might help the property sector...

– Prabhakar R. Rao

home. Most salaried professionals with limited household income put their life savings into their first home – they call it their dream home. Therefore, their user experience as home-owner becomes crucial.

The surrounding view from the window or the balcony plays a role on the overall experience – be it a waterfront view or the Burj Khalifa view – all are important for the occupier. As the market matures further, these factors will come to play a role in helping buyers’ choice.

Our limited experience and insights into the real estate business as well as our view about the Dubai market tells us that most of the new deliveries will be absorbed by the market – knowing how the visionary leadership of this country manages to sur-

prises everyone with new initiatives. Dubai Expo 2020 for example, is a classic case – that is currently driving the infrastructure expansion and project market.

Similarly, there might be other wonders that we still do not know of, which will stimulate the overall economy and help the real estate market grow. The current market scenario is also dominated by lower oil price, slowdown in global economic growth and other external factors.

Oil price is currently at a very low level. It is expected rebound – that will change things for the better.

So, if mortgage rules for ready-to-move-in homes are relaxed and if property developers extend the payment plan for end-users, we believe, the middle income group might be able to enter the property market in a big way – that might trigger hectic business and help the sector to rebound.

The only issue that might affect their decision is the 25 per cent downpayment, four per cent property registration fee and two per cent brokerage fee – making it 31 per cent upfront payment, not to mention the various fees by different departments for obtaining No-Objection Certificates. Many households might not have that kind of cash reserves to shell out.

However, even then, the quality and timely delivery will remain key in the consumers’ choice of homes. In this one life-time investment, I believe, they will not compromise. g

Mortgage reality check I nvestment in off plan properties comes with its own risk and reward.

Off plan investment are increasingly gaining momentum and being seen as a way to reap favourable returns in the maturing market.

An off-plan property is a development which is yet to be constructed, but investor reserve the unit at an agreed price and base the decision on the plans and developers’ drawings. However, once accomplished, purchasers get to enjoy a growth in return on the value of the property with the favourable market conditions. As during the construction period, developers usually offer between 10 to 30 percent lower prices and the closer to completion, the property value surges for the similar units.

In Dubai, the real estate market is witnessing enormous off-plan construction and developers are luring buyers with increasingly attractive and flexible payment plans, the very common ration is 30:70 or 50:50 payment structure.

Moreover, it is always prudent to mitigate the risk with proper due diligence and expert assistance.

Regulation

Dubai real estate governing authorities have placed a number of rules and guidelines to maintain the investors’ interest and embolden more pellucidity within the industry.

Every off plan units get

recorded with the Real Estate Regulatory Agency (RERA) and Oqood (Initial Contract of Sale) is issued to the owner. When it comes to implementation of promotional campaigns and sales for off-plan units, the regulatory body does the due diligence to make sure legal compliance are rigorously followed by the developers.

With the escrow account setup, the buyers could be certain that all the payments made during the construction period to the developer, will go into the escrow bank account rather than the developer directly. Furthermore, to protect buyer’s interest, before commencing the sale, the developers need to register their proposed construction plan with the Dubai Land Department and RERA. And once the developer accomplishes the designated construction milestone, only then the amount received from property sales could be accessible by the developer.

Therefore, structured regulations boost greater investment in Dubai and shield every off-plan buyer’s investment. However, stringent check about the project and the developer is must at the land department if, new to the market.

Mortgage Facility

As per the Dubai Central Bank, every off-plan investor can get qualified for only 50 percent loan to value (LTV).

Considering the high-level risk during the heady boom days prior to 2008, most banks in Dubai restricted the funding during the construction period and have a list of accepted developers and project.

Hence, it is always ideal to check with the mortgage expert whether the intended project is under approved list or not. Also perform the proper calculations before finalising the property, as off plan comes with a payment plan, subsequently, it should fall well within the budget and payment duration, so regardless of any financial turmoil, the buyer could afford to pay the final purchase amount. If not, plan the mortgage in advance to avoid any difficulty at the later stage.

Once the project completed the mortgage options get wide as most banks are comfortable with completed project. So, for completed properties worth Dh5 million or below, one can borrow up to 75 percent of the property value as an expatriate and 80 percent as the UAE national. So depending on the property market evaluation, the bank will lend the amount considering the buyer’s Debt Servicing Ratio.

Checklist

To ensure the best investment in any off-plan property the very first objective should a thorough research, before signing the Sale and Purchase Agreement (SPA).

The buyer should read the

OPINION

DHIREN GUPTA

Managing Director 4C Mortgage Consultancy

fine print carefully along with the points related to penalties in the case of project delays and compensation in case of cancellation.

Make sure to ask about the annual service charges for amenities and community living. And understand allied buying cost which will consist of land department miscellaneous cost for oqood registration fees. Doing own research before finalising any move is mandatory however procuring the help of an expert will give a fresh set of eyes and realistic point of view during the decision. It could really help you save time and money.

Overall, look for something, which fit into your desired time frame and more importantly your budget. If the entire process is undertaken with extra care and precaution the investment in off plan units is ultimately rewarding for buyers. g Gulf Property

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Pacific Controls faces uncertain future NEWSUPDATE

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Gulf Property Report he fate of Pacific Controls, a leading Dubai-based automation firm and a champion of the green building movement, remains uncertain as its founder continues to abscond over bounced cheque cases dating back from 2016.

The current management of the company is unclear about what direction to take, as the case against Dilip Rahulan, the company’s Indian-born Founder, Executive Chairman and Chief Executive Officer, continues to loom large.

Rahulan was named amongst the top 100 richest Indian businessmen by Arabian Business with a US$215 million (Dh790 million) wealth tag attached to his name.

Gulf Property made repeated attempts to communi cate with Rahulan on his office and cell numbers, without any luck.

A source close to the company, said, “The company is

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currently inoperational, managed by a new CEO who joined before the crisis erupted. However, it had to reduce its headcount and is now running on bare minimum. How long it continues, remains to be seen.”

He said, he believed that the total liabilities of Pacific Controls amounted to Dh1.4 billion involving 23 banks. “I don’t know how 23 banks could get it wrong?”

The case against him was brought by Indian national Shah Tigashkomar Vinodchandra, who alleged that Rahulan signed two cheques totalling Dh21,852,500 ($5.9 million) that bounced due to insufficient funds.

Rahulan was jailed for three years ‘in absentia’ for “issuing in bad faith a dud cheque,” according to media reports.

The Dubai government has issued an international arrest warrant via Interpol calling for Rahulan to be returned to Dubai to serve his sentence. He is believed to be residing in the United States.

However, for such an order

to take effect requires an extradition treaty between the requesting and requested state. There’s currently no extradition treaty between the UAE and the US. Last summer, Pacific Controls ran into financial headwinds after failing to pay off its debts valued at Dh1.4 billion. It was then reported to be in talks with UAE banks to restructure its debts, which were said to be partly because of delayed payments from some of its clients that left it unable to meet repayments on shortterm bilateral loans.

The situation was complicated due to the long absence of two key executives from the UAE that fuelled the speculation about the situation.

In a statement issued in June 2016 to the media, Pacific Controls had said: "Technology service providers are facing challenging times around the world. As a global player, Pacific Controls group isn't immune to this. Two senior executives of the group faced health issues that needed immediate medical

attention and care. This has given room to negative rumours."

"The management believes that the present challenging situation is a passing phase, and is in the process of formulating a plan addressing our lenders, customers, vendors, supporting service providers and employees. The management has taken steps to streamline operations, and is in engaging specialists in order to rationalise and optimise resources," the statement added.

In 2015, NBF Capital Limited had successfully raised Dh1 billion on behalf of Pacific Control Systems. NBF Capital, regulated by the Dubai Financial Services Authority and a fully owned subsidiary of NBF, acted as the exclusive financial advisor for the syndication.

The deal was originally valued at Dh750 million but was oversubscribed by 33 per cent, receiving Dh1 billion in total commitments. It was underwritten by NBF and Al Khalij Commercial Bank.

In the UAE, some of Pa-

NEWSUPDATE

Dileep Rahulan, Executive Chairman and Chief Executive Officer of Pacific Controls, who had once spearheaded the campaign for green buildings and sustainability in the UAE, will not be able to enter the country due to his company’s failure to meet debt obligations

“The company is currently inoperational, being managed by a new CEO who joined before the crisis erupted. However, it had to reduce its headcount and is now running on bare minimum. How long it continues, remains to be seen – A Pacific Controls spokesperson

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NEWSUPDATE

Dileep Rahulan, Executive Chairman and Chief Executive Officer of Pacific Controls

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NEWSUPDATE

Pacific Controls headquarters – the first LEED-certified green building in the Middle East – is now in trouble

cific Controls' flagship projects include 24X7 Dubai Civil Defence, Emirates Energy Star, ICT projects in the Dubai International Airport and Dubai South, and critical asset monitoring for Emaar.

Pacific Controls was in talks with banks about restructuring debts of Dh1.4 billion ($381 million), one of the largest firms to have to do so since the emirate’s economy began to slow, in July last year.

It has encountered difficulties in part because of delayed payments from some of its clients, the sources said, declining to specify which owed money or how much the firm is owed.

Pacific Controls has not made payments on shortterm bilateral loans for working capital, sources told the media last July. But payments related to a Dh1 billion longer-term facility had mostly been met, although the principal on a June re-

payment was only 80 per cent covered, one of the sources added.

The following month, Pacific Controls began a turnaround exercise overseen by KPMG, which included steps like reducing staff numbers and other cost-cutting measures. Creditors have urged Pacific Controls to accelerate asset sales to help support any debtrestructuring plan.

“Pacific Control Systems group has been in the midst of an organisational restructuring exercise. The comprehensive exercise will help streamline the operations of the company,” the company said in a statement in July.

“The management of Pacific Controls is confident of a turnaround on account of Pacific Controls’ intrinsic technology innovation, investment in infrastructure and sincerity towards the purpose of the group and its operations.”

Who is Dileep Rahulan?

Dileep Rahulan, who hails from the south Indian state of Kerala, is a mechanical engineer and entrepreneur, who is credited for initiating and championing the green building movement in the UAE and GCC – around 20062008 – at the height of the building boom in the UAE. Rahulan was born in Cochin, India in 1956, but holds an Australian passport.

He started his career as a consultant in 1982 and set up his first business in Zambia – North Atlantic Engineering Consultants – now a major engineering consulting firm in the African continent.

He set up Pacific Controls in Australia in 1984 before expanding the company to Dubai. In the 1990s, Rahulan used to shuttle among the Gulf states on business before entering the UAE market

in 1999. He later shifted Pacific Controls’ head office to Dubai and developed the first Platinum-rated Green Building in the Middle East – in Jebel Ali. It soon became known as a champion of environmentally friendly buildings, building technology to monitor energy efficiency. Pacific Controls developed Galaxy, the world’s first enterprise platform delivering city-centric services for the management of its ecosystem comprising energy, real estate, homeland security, healthcare, hospitality, transportation, education, finance, industry and retail. In 2008, Dubai Government launched the green building policy – something that Dileep Rahulan campaigned for.

Its UAE headquarters was awarded the title of Middle East’s first platinum-rated green building by the US Green Building Council in 2007. g Gulf Property

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Yardi creates own niche in Middle East Kevin Yardi, Vice-President, Corporate Solutions, Yardi Systems, speaking to Gulf Property during his recent visit to the UAE

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Gulf Property Exclusive

ardi Systems Ltd, a US-based global real estate software and services provider, is set for continued strong growth in its business across the Middle East, a top official said.

Yardi Systems Inc., which provides management software for self-storage and other types of real estate, has expanded its Yardi Matrix self-storage data-services platform to 125 markets from 99. The assetmanagement and businessdevelopment tool now includes 26,535 properties, 1,398 of which are tracked as new supply. The properties comprise 1.4 billion square feet and encompass 83 percent of the U.S. population, according to a press release.

Matrix is intended for use by analysts, investors, lenders and property managers who underwrite and manage commercial real estate, the release stated. Its resources include ownership and management information, in-place debt, rents by unit size and comparison reporting, and sales-history data. The platform is available for multi-family, industrial and office properties in addition to self-storage.

“By the end of this year, we expect our clients to add another 50,000 units onto their Yardi platforms, which demonstrate the continued wide spread adoption of our solutions, backed by continued direct local investments in the region,” Kevin Yardi, Vice-President, Global Solutions of Yardi Systems, told Gulf Property in an exclusive interview.

Yardi officials last year reported clients manage

50,000 residential units on its property management solutions in the Middle East.

This year, if it touches 100,000, the growth would double in just a year – defying the slowdown in the region, marked by low oil price.

“The Middle East is one of the fastest growing regions in our global business. Over the last twelve months, we have been awarded new products in the United Arab Emirates and expanded the markets we service to include Saudi Arabia, Kuwait, Egypt and Turkey.

Kevin Yardi, whose father Anant Yardi established the company in Santa Barbara, California in 1984, says the market growth in the Middle East is driven by urbanization, population growth, as well as a need for more efficient and customer service oriented real estate platforms in the region.

COVERSTORY “By the end of this year, we expect our clients to add another 50,000 units onto their Yardi platforms, which demonstrate the continued wide spread adoption of our solutions, backed by continued direct local investments in the region...”

– Kevin Yardi Vice-President Yardi Systems

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Kevin Yardi, Vice-President, Corporate Solutions, Yardi Systems

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Kevin Yardi

evin Yardi is a Vice President, Global Solutions in Yardi’s services organization and is based at the companies head office in Santa Barbara, California.

His focus is on support, services and implementation for Yardi’s Commercial and Investment Management clients. In his role Kevin acts as a global point of escalation from a product and services perspective.

Kevin works closely with Yardi product managers and developers to ensure that the products are meeting client requirements.

Kevin joined Yardi Systems in March 2012. Prior to which he spent close to ten years in the technology consulting sector with Deloitte and IBM respectively. Kevin has a Bachelor degree in Economics from Colby College.

Outside of work, when he’s not chasing after his young sons, Kevin is an avid squash player and enjoys the beautiful mountains and beaches in his home town of Santa Barbara, California, United States. g

The global market for Property Management Software is expected to reach about US$3.33 billion by 2022 from US$2.37 billion in 2017, registering a Compounded Annual Growth Rate (CAGR) of 6.99 per cent, according to a latest report.

The property management software market in EMEA is expected to be worth US$570.9 million by 2021, driven by increased digital marketing, Internet penetration, and property management process automation.

Germany and the UK are the leading revenue contributors to the market in EMEA, with

At A Glance

$3.33 billion value of property management software market in 2022

$2.37 billion value of property management software market in 2017

$570 million

property management software market value expected by 2021 in EMEA

Kevin Yardi, Vice-President, Corporate Solutions, Yardi Systems

many organizations opting for digital property management software solutions to collaborate with customers and market their properties.

Property management software aids enterprises to collect, analyze, and manage the data generated from social media.

Kevin Yardi said it hired its 5,000th employee last year and now services clients in over seventy countries around the world. The company has thirty offices, including International offices in Amsterdam, Dubai, Cluj, London, Mainz, Hong Kong, Melbourne, Pune, Shanghai,

Singapore, Sydney, and Tokyo.

The real estate industry generates a massive amount of data and Yardi is meeting the big data security and infrastructure needs of its rapidly growing client base in the Middle East having invested in a new data centre in Dubai to better serve clients across the region.

The Dubai data centre adds to a network of more than twelve data centres including North America Europe, and Asia Pacific.

Together they form the Yardi Cloud, a secure, scalable and cost-effective software

and data management provisioning solution that reduces client IT infrastructure, support services and security investment requirements.

In December 20016, Yardi was named one of the 10 Fastest Growing Cloud Solution Provider Companies, by Insights Success.

Anant Yardi, founder and President of Yardi, was recognised for his pioneering efforts in the industry. Insights Success stated: “His vision is the driving force behind the development of effective and innovative software solutions for global real estate portfolio management.”

“Yardi Systems is leveraging cloud technology to enhance both the consumer and professional experience with real estate engagement.

Yardi is equipped with the resources to upgrade the technological aspect of nearly every real estate vertical,” stated the magazine.

The recognition follows another major honour for Yardi in 2016. In September, the Gulf Property

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Yardi Systems’ enterprise solutions can reduce the cost of property management drastically and offer greater cost savings to the property owners and managers

company was named to Forbes’ inaugural Cloud 100, the definitive list of the top 100 private cloud companies in the world, developed in partnership with Bessemer Venture Partners.

Kevin Yardi was in Dubai recently to attend the company’s annual Yardi Advanced Solutions Conference (YASC) held for clients and partners from across the Middle East. He says that customer service and interaction with customers during product development cycles are a foundation of the company’s strategy.

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“We have over 1,000 programmers, and 2,500 customer services and QA team players – which speak a lot about our strong customercentric approach,” Kevin Yardi says “In most companies, this is the other way around. We put more focus on customers.”

Examples of recent clients that have adopted the Yardi platform in the Middle East include: Kuwait Financial Centre (Markaz) selected Yardi Voyager 7S, the browser-agnostic and mobile-enabled software as a service platform along with Yardi’s Orion

Business Intelligence.

Markaz has earned a credible name for itself amongst the top performing fund managers in Kuwait due to its strong and consistent performance spanning many years. The company offers full-fledged services in asset management and investment banking. Asset management services offered by the company include Investment Advisory Services, GCC and International Investments and Private Equities.

Markaz’s Assets Under Management (AUM) as of 31st December, 2016 is US$3.05 billion.

Shopping center owner and operator Unified Real Estate Development, whose tenants include some of Saudi Arabia’s largest retail companies, will perform lease and property management with Yardi Voyager 7S. Unified Real Estate Development, established in 2006, owns and operates 46 shopping centers in Saudi Arabia.

It is one of the Kingdom’s fastest growing real estate development and operations firms.

Arabian Centres, the largest owner and operator of retail malls in Saudi Arabia, will adopt a single tech-

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Yardi Systems amongst Forbes 100 list

ardi has been named for the second time to the Forbes Cloud 100, the definitive list of the top 100 private cloud companies in the world.

Yardi was a member of the inaugural Cloud 100 in 2016, moving up to the #26 spot on the list in 2017.

Published by Forbes in collaboration with Bessemer Venture Partners, the list will appear in the July 27, 2017 issue of Forbes magazine.

“We’re honored that Forbes chose to recognize our efforts to provide industry-leading cloud solutions for our clients for the second straight year,” said Anant Yardi, founder and president of Yardi. “Our cloud-based software serves real estate and investment companies of all sizes around the globe.”

The Forbes 2017 Cloud 100 was selected by a panel of judges representing leading public cloud companies, using qualitative and quantitative data submitted by

nology platform to manage the retail lifecycle of 19 malls when they implement cloudbased Yardi Voyager 7S as their new lease and property management platform. The first project Sahara plaza, opened in 2002, represents the starting point for all 19 malls to follow combining world-class shopping, dining and entertainment and a precursor to future multiple unit expansion over the next 2 years.

In an exclusive interview, Kevin Yardi, Vice President, Global Solutions of Yardi Systems, elaborates his thoughts on several topics.

Anant Yardi named top corporate leader

nominees, along with thirdparty data sources.

The evaluation process involved four factors: estimated valuation (30%), operating metrics (20%), people & culture (15%) and market leadership (35%), which the judge panel then weighed to select, score and rank the winners. With that data, the Forbes Cloud 100 judge panel, made up of a majority of public cloud company CEOs, was then responsible for selecting and ranking the top 100 companies from all over the world.

“Our inaugural Cloud 100 list showed the tech and venture capital community just how many standout private cloud companies there are to watch, and this year’s list is no exception,” said Forbes editor of the Cloud Excerpts:

Gulf Property: Is it your first visit to Dubai? How do you feel?

Kevin Yardi: Yes. I’ve heard so much about the city. It’s amazing. It’s an exciting time to be in Dubai as there are so many things happening.

Although we read a lot about the progress the country has made within a relatively short span of time, one must visit Dubai to appreciate the city.

I am impressed with the vision of the UAE leadership for the economic development of the Emirates and the

100 list Alex Konrad.

“Forbes has a keen eye for businesses, and combining that with Bessemer Venture Partners and Salesforce Ventures’ deep knowledge of the cloud industry, any company’s inclusion on the Forbes 2017 Cloud 100 list is cause to celebrate.”

“These companies are leading the cloud technology revolution,” said Byron Deeter, a top cloud investor and partner at Bessemer Venture Partners. “The founders and teams behind the Forbes 2017 Cloud 100 companies are of another caliber and we are beyond excited to celebrate the hard work and enormous value these companies are creating as they propel the trilliondollar software industry forward.” g type of world class city that Dubai has become.

So, now that your company is in the UAE, how is the business?

We are extremely pleased by the growth of our business across the Middle East.

We’ve built a strong local team, and continue to invest in people and local infrastructure.

Our message about a “single source of truth” in an integrated property management solution is being well received.

Where do you see the opportunities for improve-

A

nant Yardi, founder and CEO of Yardi in Santa Barbara, has been named to a list of the nation’s top corporate leaders by employer review website Glassdoor.

Yardi received a Glassdoor Employees’ Choice Award recognising the Highest Rated CEOs for 2017. He is ranked No. 32 on the list of top-rated CEOs for large companies in the United States.

This ranking is based solely on the anonymous and voluntary opinions offered by users of the Glassdoor platform.

The U.S. Large Company category includes firms with more than 1,000 employees. Ratings were compiled during a oneyear window, which concluded in May. g ment and growth in your business?

We see a few trends that will help continue to drive the growth of our business, and enable improvement of how the real estate market operates in the Middle East.

The first is the continued adoption of Cloud based platforms, that will allow IT organizations to focus on value added services rather than racking and upgrading IT servers. The Cloud provides clients with a more robust and scalable platform, enabling their resources to be focused on more client centric activities.

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The second is the continued adoption of integrated property management platforms, enabling the provision of services that include property web sites, online leasing, resident services, mobile apps and traditional back-office accounting, property and facilities management operations.

This will help the industry provide more customer centric services to their residents (ie residential properties) and tenants (ie commercial properties) respectively.

At Yardi, we constantly challenge ourselves to improve and come up with better solutions. That’s why, we have a clear focus on customer experience and our team members constantly challenge the norms to evolve our solutions based on the needs of our clients.

What are your key differentiators?

Our exclusive focus and understanding of the real estate sector is an important differentiator for us.

This is precisely why we continue to develop innovative user-friendly role based mobile apps that enable say a resident in an apartment building to pay their rent online, place a service request or and reserve an amenity through a few taps on the Yardi RENTCafe resident app on their smartphone. It’s simple and easy.

Tell us about your energy management solutions.

Yardi is also focused on developing solutions for energy management and sustainability.

Energy is one of the

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Yardi Systems

ardi is a US-based real estate software and service provider dedicated to the design, development, and support of real estate investment management and property management software.

Yardi Systems develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, California, and serves clients worldwide from offices in Asia Pacific, the Middle East, Europe and North America.

Yardi offers full business solutions for every real estate market, including, but not limited to, residential, office, industrial, retail, entertainment and leisure, government, and self-storage market segments.

Yardi continues to develop and deliver software and services with the highest commitment to quality, innovation, responsiveness, and customer focus. With over thirty offices and 5,000 employees worldwide, Yardi is biggest cost factors in owning and managing a property.

If we can help our clients reduce the amount of energy consumed in buildings, thats good for both the bottom line as well as for the environment.

In this way, we are developing solutions that help better manage the effectiveness of building HVAC systems as well as IOT (internet of things) enabled devices, for example a thermostat, and then capture and analyse energy related data and KPIs. This will help further moderate energy usage and associated costs.

considered a global leader in developing solutions for the real estate sector. Yardi Systems was born out of a need that has made the entire asset management to the next level.

In 1982, Anant Yardi recognised the need for an integrated accounting and property management software for the residential marketplace. As the director of systems development for Burroughs Corporation (now Unisys) and with 14 years of programming experience, he knew he had the background to design such a product.

In 1984, Basic Property Management was created for the Apple II computer and was sold to first customer, Sabaco Realtors.

Since that time, Anant has directed the company through over 30 years of steady growth, remaining the President and sole owner as Yardi became a leader in asset management solutions.

The Santa Barbara, California-based company now serves 20,000 clients representing some 7 million residential units and 8 billion square feet of commercial space.

In the Middle East, which segment of the properties use your products the most?

We have three types of sectors that help drive our business. The first are owners and operators of shopping malls.

The second are property agencies that manage the leasing of commercial and residential properties, as well as provide ongoing maintenance services.

And the third are developers that either “build and sell” or “build and rent” residential units.

How is your growth in the Middle East?

Today, Anant has been recognised as one of the early pioneers in the commercial real estate automation industry, a “visionary in respect to automation systems and the resultant benefits in property operations,” according to Realcomm, when they honoured him with the 2004 “Digie” award.

He was inducted into the Multi-Housing News “Hall of Fame” that same year, and his company continues to receive industry accolades.

Anant has an M.A. in Engineering from the University of California at Berkeley, and worked for 14 years developing programming methodologies and directing systems development at Burroughs Corporation prior to establishing Yardi Systems.

The company offers full business solutions for every real estate market, including multifamily, single family, affordable, public, senior and military housing as well as office, industrial, retail, and self-storage market segments. Yardi continues to develop and deliver software and services with the highest commitment to quality, innovation, responsiveness, and customer focus. g We’ve been pleasantly surprised by our growth and continue to be optimistic about the growth in the region.

We continue to invest heavily in our local operations in Dubai, and are currently doubling the size of our office space to accommodate our continued growth. We expect that the GCC will continue to be one of our fastest growing regions for the next few years.

I’m already looking forward to my next trip to Dubai, and plan on spending some more time exploring this fascinating part of the world. g

COVERSTORY

Kevin Yardi, Vice-President, Corporate Solutions, Yardi Systems

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Dubai land deal value hits $36bn in H1 2017

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Gulf Property Exclusive

and and property transaction value grew 16.8 per cent to US$36 billion (Dh132 billion) in the first half of 2017, compared to the corresponding period last year, according to Dubai Land Department.

The total number of sales, mortgages and other transactions reached 35,571 from January 1 to June 30, 2017, Dubai Land Department (DLD) said. This includes

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25,864 sales transactions worth over Dh63 billion and 7,893 mortgage transactions worth Dh60 billion, while 1,814 other types of transaction brought in Dh9 billion.

Land represented Dh91 billion from approximately 8,000 transactions, while building sales accomplished 3,887 transactions with a total value of Dh10 billion and unit sales crossed the Dh31 billion mark from 24 transactions.

The report somewhat defies the real estate market scene which is dominated by lower demand and higher supplies. However, the report

will help push up the market sentiment.

Sultan Butti bin Mejren – Director General of DLD, said: “Our report for the first half of this year bears promising results for professionals in the real estate sector, as despite global economic pressures, Dubai has once again reaffirmed its leadership of regional markets and driven renewed growth in the region.”

Bin Mejren confirmed that the 26 per cent increase in the number of transactions and the 17 per cent increase in the value of transactions are an unrivalled success for

the sector. The success demonstrates the wisdom of the economic policies set by the government – particularly those that have contributed to the protection of all parties and the preservation of real estate rights, as these have encouraged real estate investment and safeguarded the growth of a transparent, sustainable and secure real estate sector.

Bin Mejren added: “Establishing strong foundations for the sustainable growth of our real estate sector has been largely focused on preserving the rights of all investors and providing a secure envi-

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Emiratis top investors with Dh15 bn

AE nationals tops the list of investors in Dubai’s real estate, investing Dh15 billion (US$4.1 billion) with 4,510 transactions, according to the Dubai Land Department (DLD), the emirate’s land registry.

The total value generated

by GCC investors increased by 16 per cent compared to the same period last year, with 7,665 transactions worth Dh21.7 billion. Saudi nationals ranks second place with a total of 1,936 transactions worth Dh4 billion. Among the Arab investors, Egyptians and Jordanians took first and second places respectively.

The total value of Arab investments reached Dh8 billion, representing a 25.5 per cent increase compared to the same period last year, generated by 4,654 Arab investors, a 40 per cent increase compared to the same period.

Among foreign investors, Indian, Pakistani, British, Chinese and Canadian naronment where their transactions can take place in a transparent matter. This has allowed the sector to grow by increasing investor confidence and heightening the appeal of Dubai’s property market.”

The report provides further details about the total number of investments made in Dubai’s real estate market during the first half of 2017.

27,381 transactions were completed by 21,574 investors, generating a total investment value of Dh58 billion. The report also highlighted that 6,253 female investors completed 7,341

transactions worth Dh15 billion.

Emirati investors ranked first for both number and value of transactions, completing 4,510 transactions worth Dh15 billion, followed

by Saudi nationals in second place with a total of 1,936 transactions worth Dh4 billion. The total value generated by GCC investors increased by 16 per cent compared to the same period last year, with 7,665 transactions worth Dh21.7 billion.

The report also sheds light on the top ten areas in Dubai for both number and value of

transactions. Dubai Marina took first place with 2,529 transactions, followed by Business Bay with 2,146 transactions, Al Barsha South 4 with 2,001 transactions, Jebel Ali 1 with 1,931 transactions, and in fifth place Al Thaniya 5 with 1,501 transactions.

In terms of value, Palm Jumeirah topped the chart with transactions worth Dh9.5 billion, followed by Dh6.5 billion for Business Bay, Dh5.8 billion for both the Burj Khalifa and Dubai Marina areas, and Dh5.6 billion for Al Wasl area.

Dubai Land Department

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tionals took the first five places, with 15,062 investors generating a total value of Dh28.6 billion.

These figures represent a 35 per cent increase in investor numbers and a 34 per cent increase in value compared to the first six months of 2016.

Land and property transaction value grew 16.8 per cent to Dh132 billion in the first half of 2017, compared to the corresponding period last year, according to Dubai Land Department.

The total number of sales, mortgages and other transactions reached 35,571 from January 1 to June 30, 2017, DLD said. This includes 25,864 sales transactions worth over Dh63 billion and 7,893 mortgage transactions worth Dh60 billion, while 1,814 other types of transaction brought in Dh9 billion.

Land represented Dh91 billion from approximately 8,000 transactions, while building sales accomplished 3,887 transactions with a total value of Dh10 billion and unit sales crossed the Dh31 billion mark from 24 transactions. g was found in May 1960 to establish the most prominent real estate sector in the Middle East and in the world.

It provides outstanding services to all its customers whilst developing the necessary legislation to propel the real estate sector in Dubai, organising and promoting real estate investment, and spreading industry knowledge. It seeks regional and worldwide innovation in real estate with the aid of its active organisations that include: Real Estate Regulatory Agency, the regulatory arm, Real Estate Investment. g Gulf Property

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Onsite sale to boost real estate market

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ityscape Global, the largest showcase of residential and commercial properties, will allow UAEbased projects to sell on-site to homebuyers and investors for the first time, in what is expected to be a turning point for potential buyers looking to make purchases at the three-day exhibition.

The move is expected to turn the business-to-business event into a business-

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to-consumer event and will help attract a large number of end-users who would come for bargain-hunting for a suitable home.

“The move also reflects the harsh reality when developers and brokers are finding it difficult to sell properties while the inventory of readyto-move-in homes are piling up and has the potential to create a glut in the market,” said a real estate analyst, requesting anonymity.

“The fact that the market is suffering from weak demand and over supply is no secret, while a number of developers are continuing to bring

new supplies in the market.

This might dampen the market, putting pressure on price and rental yield.”

However, the news of allowing on-site sale at the Cityscape Global exhibition offers a sigh of relief to the developers as they could now look forward to a higher number of sale at the exhibition itself.

Taking place from Monday 11 September to Wednesday 13 September at Dubai World Trade Centre, Cityscape Global will feature some of the foremost developers from the region and internationally, who will

showcase a range of groundbreaking real estate projects.

“This is a great opportunity for developers to increase their return on investment onsite, and for visitors to capitalise on attractive price options, making informed purchasing decisions directly on the show floor,” said Tom Rhodes, Exhibition Director, Cityscape Global.

The 16th edition of the event will, for the first time, see visitors interested in investing in the UAE able to make purchases at the show.

Developers with projects based in the UAE will be permitted to make sales on the

CITYSCAPE “The fact that visitors will now be able to purchase UAE-based registered property at the stands at this year’s Cityscape Global, we predict that the show will usher in more visitors looking to seize opportunities, and an increased ROI for developers...”

– Tom Rhodes.

Exhibition Director, Cityscape Global

Tom Rhodes, Exhibition Director, Cityscape Global

show floor, in accordance with the rules and regulations administered by the local land departments and municipalities in the emirate in which the property is located.

“Over the past few years, authorities such as the Dubai Land Department have worked tirelessly to increase investor transparency in the market and their efforts have proved successful. This has enabled Cityscape to foster closer ties with regulatory bodies, like Real Estate Regulatory Agency (RERA), to ensure that only registered projects are showcased and now sold at the exhibition,”

Rhodes says.

Dubai remains the most transparent real estate market in the MENA region and recorded an improvement in Jones Lang LaSalle’s Global Real Estate Transparency Index for 2016. According to the property consultant, the Dubai Government and the Dubai Land Department are ticking more boxes when it comes to opportunities for potential investors through efforts to improve transparency.

As a result of the opportunity to make on-site transactions at this year’s exhibition, Cityscape Global is expect-

ing significant interest from visitors looking for real estate investment at the exhibition.

Last year, a Cityscape Global survey found that close to 30 per cent of attendees were homebuyers and investors, while 68 per cent of visitors confirmed they intended to make a purchase or conduct business with a company that they met during the exhibition. In addition, a YouGov attitudinal survey – conducted in partnership with Cityscape and commissioned ahead of Cityscape Global last year – revealed that 42 per cent of GCC and Egyptian investors see UAE

as the most attractive country to invest in real estate.

Cityscape Abu Dhabi, held earlier this year, permitted sales directly from exhibitor stands for the third year running; a formula which proved successful and resulted in an increase in return on investment for many local developers, including Aldar who sold a significant portion of their new development, The Bridges, and generated a total value of Dh400 million.

“On the back of these results and the fact that visitors will now be able to purchase UAE-based registered property at the stands at this Gulf Property

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year’s Cityscape Global, we predict that the show will usher in more visitors looking to seize opportunities, and an increased ROI for developers,” added Rhodes.

According to Lynnette Abad, Partner and Head of Property Monitor, Data Partner at this year’s Cityscape Global, at Cavendish Maxwell, the average apartment prices across Dubai have continued to trade within a close range of Dh1.2 million to Dh1.4 million over the last 12 months, while average prices for villas have moved from Dh3.7 million in Q3 2016 to Dh2.2 million this quarter.

“Lower priced villa inventory continues to enter the market in locations such as Dubailand, impacting price dynamics for existing communities,” said Abad.

“For apartments, starting prices of Dh700,000 in emerging locations such as Dubai South and Sports City are driving demand from first time buyers. Communities with existing infrastructure and amenities continue to fare better than outlying areas with limited facilities and majority of the projects under construction.”

Cityscape Global 2017 returns with support from Foundation Partners: Dubai Properties, Nakheel PJSC; Platinum Sponsors: Al Marjan Island, Binghatti Developers, Union Properties; and Silver Sponsor: Maryapi Real Estate Development; Project Marketing Sponsor: Aqua Properties and Strategic Partner: Dubai Land Department.

Also exhibiting this year are Wahat Al Zaweya Investment & Real Estate Develop-

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ment, Kleindienst, Knight Knox, Five Holdings, Nakheel, Dubai South, Damac Properties, Dubai Holding and many more.

In an exclusive interview with Gulf Property, Tom Rhodes, Exhibition Director, Cityscape Global, elaborates his thoughts on the overall market situation as well as Cityscape Global. Excerpts: Gulf Property: How is the current real estate market in the UAE, especially Dubai?

Tom Rhodes: The real estate market in the UAE is showing signs of stability

after a period of decline. We have seen recent figures released by the Dubai Land Department (DLD) showing strong growth in the first half of 2017, compared to the same period last year.

This has been reflected by a 17 per cent increase in property transaction during this period.

Many factors have contributed to the attractiveness and maturing of the real estate market in Dubai, including the introduction of authoritative rules, population growth, technological advancement, and the high level of construction in

preparation for Expo 2020.

With a strong Dirham international investment into the UAE has slowed down, due to reduced purchasing power. We have seen this buoyed by strong local investment market in recent weeks, with DLD recent figures reporting 4,510 transactions made in H1 this year by Emirati’s.

As we approach Cityscape Global, we see leading developers, from all Emirates getting ready to launch new projects during the September event, with attractive payment plans appealing to the end user which we antic-

CITYSCAPE “There are around 25,000 units set to be handed over by the end of 2017, which industry experts expect roughly 50 per cent to be completed.

This helps the market to address oversupply concerns, ensuring stable and realistic pricing in the market...”

– Tom Rhodes.

Exhibition Director, Cityscape Global

ipate to resonate well in the market.

According to most reports, the market is suffering from a degree of oversupply. What is your view?

Historically we have seen an inconsistency between the number of units announced and the number of units delivered in Dubai.

There are around 25,000 units set to be handed over by the end of 2017, which industry experts expect roughly 50 per cent to be completed. This helps the market to address oversupply concerns, ensuring stable

and realistic pricing in the market.

Dubai is an Emirate that continuously attracts foreign investments and new residents due to its strong positioning in the region. This has helped to attract leading multinational companies to the Emirate and will continue to drive a growing population, supported by the job creation surrounding Expo 2020.

We have seen a tendency for home buyers and investors, to be drawn towards new off-plan developments in the market, due to their favourable payment plans,

and low initial investment required. With an estimated growth in supply of 15 per cent up to 2020 (78,000 units), and population growth of 3.5 per cent per annum as shown in Jones Lang LaSalle’s recent Q2 report there is a potential for increased vacancy levels, however, with projects delaying their release onto the market, we will see a healthy balance kept between supply and demand.

Do you think the lower price of oil and slower global growth has had a dampening effect on the

market?

The increasing strength of the US dollar and the low oil prices have had an effect on the GCC market. With oil revenues constituting a major part of many regional economies this has seen a reduction in Government spending in the real estate market.

The impact in the UAE has been minimised due to the diversified economy, and reduced dependence on this revenue. We also saw Moody’s Investors Service recently update the UAE’s rating from negative to stable sighting key drivers such as Gulf Property

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‘effective policy response to the low oil price..’ affirming their long term Aa2 issuer rating.

GCC investors appear to be currently focusing investments on international markets such as the UK and US. Nonetheless, there is a positive sentiment about the future of the local market as there is continuous wealth creation, fast growing tourism, new account openings, increasing non-Arab investments, and population increase bringing liquid assets to the UAE. You

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hibitors to directly sell properties at the stands at Cityscape Global. Why and why now?

Cityscape has always been a big supporter and partner of both the DLD and the Real Estate Regulatory Agency (RERA).

There has been a major focus to implement new regulations in the market to improve the investor environment, which we support through our position as the leading real estate investment exhibition in the region. In recent years this has led to improved transparency on projects with each project

being promoted at Cityscape Global being submitted to RERA through their online system.

RERA have worked hard to improve the approval process for projects with all companies requiring full approvals including escrow accounts number, trustee accounts number etc before going out to the market to promote the project. These implementations as well as the development of RERAs online approval system Trakheesi in October last year have allowed us to support the promotion and now sales of properties at

Cityscape This has been a joint effort between RERA, Cityscape and DWTC to allow for this change in onsite sales activities.

All of those exhibitors who are showcasing projects in the surrounding emirates will be required to submit their approval forms from the relevant Land Department or Municipality.

Is this going to turn Cityscape Global a B2C event, from a purely business-to-business event?

In reality, Cityscape Global is a balanced mix of real estate

CITYSCAPE “The move to allow UAE-based project developers to sell properties at their stands is a great opportunity for developers to increase their return on investment onsite, for visitors to capitalise on attractive price options, and to make informed purchasing decisions directly on the show floor.”

– Tom Rhodes.

Exhibition Director, Cityscape Global

services, investors and consumers, as participants look to gain industry insight, knowledge and awareness, alongside generating future business.

Visitors are interested in the event’s range of products and offerings, which in recent years has encouraged more end users to look for personal opportunities as they can source from a wealth of information under one roof.

Our main objective is to act as a platform for the real estate industry, showcasing upcoming projects and provide an update of the investment climate that currently exists

in the market.

Is this a desperate attempt for developers to sell the rising inventory of empty homes?

The move to allow UAEbased project developers to sell properties at their stands is a great opportunity for developers to increase their return on investment onsite, for visitors to capitalise on attractive price options, and to make informed purchasing decisions directly on the show floor. We predict that the show will usher in more visitors looking to seize opportunities.

Close to 30 per cent of last year’s attendees were homebuyers and investors, while 68 per cent of visitors confirmed they intended to make a purchase or conduct business with a company that they met during the exhibition. This shows the positive prospects that could result in this decision.

We’ve also witnessed the success of on-site sales at Cityscape Abu Dhabi for the last three editions and saw an increase in return on investment for many local developers, including Aldar Properties who sold a significant portion of their new de-

velopment, the Bridges, generating a total sales value of Dh400 million.

How would you handle the consumer entry, the rush?

Are you going to introduce ticket system? What would be the price per ticket?

As with every year, we encourage all visitors to register to attend online in advance, but on-site registration is also available.

While we do expect an influx driven by exhibitor promotions of offers specific to the three day exhibition, we will have the necessary registration points available and Gulf Property

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will cope with the demand through our Fast Track desks, for preregistered visitors, and On-site registration counters for those registering on the day.

Attendance to the event is free if you pre-register on the Cityscape Global website, while an Dh100 entry fee will be charged for those who register on the day.

How many visitors are expected to visit the event?

We welcomed approximately 38,000 participants from more than 179 countries to the event in 2016 and expect to see similar figures this

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year, through our extensive marketing campaign.

How many property developers, brokers and others are participating at this Cityscape Global?

So far, we have approximately 230 exhibitors from 23 different countries registered to exhibit at Cityscape Global 2017, spread across over 42,000 square metres of space – taking over 9 halls of the Dubai World Trade Centre.

How many of the participants are from the UAE? Approximately 60 per cent of

our exhibitors are from the UAE. We have seen a growing number of enquiries from UAE based developers looking to showcase their projects at the show following the announcement of onsite sales this year and we look forward to showcasing a growing variety of investment opportunities this year.

Which foreign country has the highest participation?

This year we will see a strong turn out from developers in Pakistan (12%), Turkey (9%), the UK (6%), Bahrain and Cyprus (4%).

Property prices are coming under pressure due to lack of demand and rising supply. Do you feel the same?

Property prices are stabilising while experiencing a tight decline valued at less than 1 per cent in 2017’s second quarter. Industry experts, however, anticipate an increase in the coming months.

Residential property prices are becoming softer as pressure in Dubai is reducing, and this is encouraging endusers and first time buyers in particular to join the property ladder.

CITYSCAPE

The market is expected to witness price increases especially for prime residences, which are undersupplied. As there is an increasing rate of cash flow to Dubai, many investors and end-users prefer buying properties instead of holding their money.

This is reassuring since wealth creation can only increase with the growing number of incoming populations, fast growing tourism, and government investments in preparation for the market catalyst, namely Expo 2020.

When do you expect the market to rebound?

Q2 market reports have indicated that following a sustained period of static house prices, we will start to see a strengthening in the market towards the end of this year.

This has been supported by the recent figures released

by DLD, indicating an increase in transactions during the first half of 2017 of 26 per cent representing a 17 per cent increase in value.

On top of this Property Monitor have confirmed that July has registered the highest number off-plan sales since 2012, mainly down to appealing payment plans, and low initial investment.

With many new launches and special offers set to be announced during Cityscape Global, we expect to see strong interest from home buyers looking to capitalize on these opportunities and benefit from the wealth of knowledge on offer during the 3-day exhibition.

What can the visitors expect from this year’s Cityscape Global exhibition? How will it be different from the previous editions?

Each year, Cityscape Global gives home buyers the opportunity to compare a wide

variety of properties under one roof, throughout the 3 day exhibition.

The opportunity to meet and discuss your requirements with hundreds of real estate developers, brokers, and financiers makes the process of purchasing a home a much more convenient experience.

Visitors will be able to avail special offers that our exhibitors will be running during the exhibition, so I strongly urge any prospective home buyers to come down, and take advantage of this time.

Be it discounted rates, or special payment plans there is sure to be a great opportunity for everyone, especially as we see reports indicating prices are bottoming out, and expected to start increasing in the near future.

Showcasing some of the most iconic future developments across the UAE, and with many great investment opportunities on show from our international exhibitors Cityscape Global offers a fantastic platform for anyone looking to invest in the real estate market, be it in the residential, commercial, retail, or hospitality sector.

The market will see drivers such as the forthcoming Expo2020 have a significant impact on the future growth of the sector which will see a number of new projects being launched over the coming months to support this global showcase, and so we welcome all investors, home buyers and industry professionals to come and attend the exhibition g Gulf Property

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Damac to rebuild Port Qaboos waterfront NEWSUPDATE

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Gulf Property Exclusive

man Government’s investment, growth and development arm Omran and Damac International will rebuild the 200-year-old harbour Mina Sultan Qaboos at Muttrah area of Muscat, the country’s capital – through a US$1 billion mixed-use master-planned project, called Mina Sultan Qaboos Waterfront.

Mina Sultan Qaboos is a historic place as well as

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apopular tourism attraction.

Phase one of the integrated mixed-use waterfront destination is projected to be completed by 2020, and will transform the current commercial Port Sultan Qaboos area into a major tourismbased development, spanning 64-hectares area.

The Mina Al Sultan Qaboos Waterfront will include business and residential zones, destination mall, six hotels (including three-, four- and five-stars), recreation amenities, tourist attractions as well as docking facilities for cruiseliners and yachts.

The development will take

place over four separate phases.

The master development plan was conceptualised in 2015, with significant inputs received from private sector investors, who are keen to capitalise on the tourism and hospitality opportunities presented by the grand waterfront scheme.

This would be Damac’s first such venture outside the UAE, where the company would be re-developing an old harbour neighbourhood and re-develop it as a mixeduse masterplanned waterfront community and strengthen its touristic ap-

peal.

This comes as Damac Properties begin delivering homes at its first mixed-use community – Damac Hills and continues to develop its second master-planned project – Akoya Oxygen.

“Damac International has been chosen by the Government of Oman to develop its Port Sultan Qaboos into a world-class, waterfront mix use destination through a joint venture with Omran, the government’s investment, growth and development arm,” said the listed Dubaibased developer Damac Properties in a press state-

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ment.

“Mina Sultan Qaboos Waterfront’ is being redeveloped into a $1 billion (Dh3.67 billion) integrated tourist port and lifestyle destination that includes hotels, residences, as well as a dining, retail and leisure offering.

The Souq Al Mina, will be situated alongside a still functioning harbour for cruise ships and yachts, which will celebrate Oman’s rich cultural heritage with contemporary aesthetics.

Over 150 cruise ships are set to dock in Muscat in the next cruise ship season, as they come to experience a

true jewel of Arabia. It will cover a number of verticals, such as catering, retail, fashion, accessories, entertainment, decorative arts, crafts, textiles, design, furniture, jewellery, gifts, organic products — to offer unique products and services for locals, residents and tourists.

A Memorandum of Understanding was signed by Hussain Sajwani, Chairman of Damac Properties, and Dr. Ali bin Masoud Al Sunaidy, Deputy Chairman of the Supreme Council for Planning, Minister of Commerce and Industry and Chairman of Omran, in the presence of

Dr. Ahmed Al Futaisi, Minister of Transport and Communications and Omran board member, as well as other members of the Omran board and key dignitaries.

“This historic agreement reflects the vision of His Majesty Sultan Qaboos bin Said to transform Oman into a world-class tourism and investment destination,” said Sajwani.

“As the second largest developer in the region and with a strong record of international experience, Damac is ideally positioned as the joint development partner of Omran. As part of its commit-

ment to the project, Damac will contribute to the local road infrastructure, improving opportunities for local SMEs and Omani nationals, as well as enhancing the economic and social standing of the community as a whole.”

Analysts say, Damac is well-positioned now to be able to handle such large projects, with its track record in Dubai as the largest private sector property developer in Dubai.

Dr. Ali Al Sunaidy, said, “Mina Sultan Qaboos Waterfront is based in the 200 year-old historical centre of Gulf Property

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commerce in Muscat and is one of the most visited tourist destinations in Oman. The redevelopment of the port by Omran will build renewed interest and focus to the area, while creating a strong investment proposition for the tourism, real estate and leisure industries.”

Dr. Ahmed Al Futaisi commented, “The transformation of the port into a thriving economic and tourist hub stems from His Majesty’s vision to move commercial port activity to Port Sohar, paving the way for the redevelopment of the port into an integrated tourist hub.”

Damac was chosen by Omran for its experience in developing world-class residential and leisure projects in the Gulf and internationally.

Damac’s extensive portfolio of luxury apartments and villas, hotels and international

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“This historic agreement reflects the vision of His Majesty Sultan Qaboos bin Said to transform Oman into a world-class tourism and investment destination. Damac will contribute to the local infrastructure, improving opportunities for local SMEs and Omani nationals, as well as enhancing the economic and social standing of the community.”

– Hussain Sajwani, Chairman, Damac Properties

golf courses in its home market of the UAE,Gulf, Levant and the United Kingdom, make it the ideal partner for Port Sultan Qaboos Water-

front.

With over 18,500 homes delivered and more than 44,000 units in various stages of development,

Damac has cemented its place as a leading luxury developer in the Middle East.

Damac builds 1,296 villas at Akoya Oxygen

Damac Properties said, it has awarded Arabtec Construction LLC with a US$171 million (Dh628 million) contract to develop 1,296 villas at Damac’s Akoya Oxygen master development.

This is one of the largest such contract by Damac.

Arabtec will begin construction in Q3 2017 at the 55-million-square-foot green development in Dubailand, and is expected to complete the project within 24 months.

“Damac always chooses to partner with leading contractors and consultants who

I

Mina Sultan Qaboos

naugurated in 1974, Port Sultan Qaboos, was the first commercial port in the Sultanate of Oman. In 2011, His Majesty Sultan Qaboos bin Said issued directives to transfer the commercial activities of Port Sultan Qaboos to Port Sohar and convert Port Sultan Qaboos into an integrated tourist port.

Port Sultan Qaboos is located at the heart of Muttrah, which originally was the centre of commerce in Muscat. Muttrah has one of the oldest traditional souks in the Arab world, with a history stretching back over 200 years and is the most visited tourist destination in Oman. Mina Sultan Qaboos will be re-developed as a high quality Waterfront Destination, over a number of development phases. This

have a proven track record for delivering quality and efficiency. With Arabtec, we are confident that the momentum and steady progress at Akoya Oxygen will remain on track right through to project completion,” said Mohammed Tahaineh, Senior Vice President – Commercial at Damac Properties.

Akoya Oxygen offers a tranquil environment with lush, green surroundings in a secluded, family-friendly community. Energy-efficient homes are surrounded by beautiful landscaping and cascading water features.

Located off the Umm Suqeim Road extension and approximately 15 minutes from Damac Hills, Akoya Oxygen will include contemporary residential properties of various sizes surrounding an 18-hole championship golf course, along with an or-

ganic produce market, hydroponic café, luxury wellness centre, outdoor yoga enclave and retail outlets featuring well-known brands.

Damac Properties, established in 2002, has footprint across the Middle East with projects in the UAE, Saudi Arabia, Qatar, Jordan, Lebanon and the United Kingdom.

As of 31st March 2017, Damac Properties has delivered approximately 18,500 homes. The company has a development portfolio of over 44,000 units at various stages of progress and planning, comprising more than 13,000 hotel rooms, serviced apartments and hotel villas, which will be managed by its hospitality arm, Damac Hotels and Resorts. With vision and momentum, Damac is building the next generation of Middle East luxury living.

Amlak Tie-Up

Damac has recently partnered with Amlak Finance, a leading Islamic home financing provider in the UAE, to offer its existing customers an exclusive investment opportunity.

The deal allows existing Damac customers to purchase a second property through Damac’s completed and off-plan portfolio with zero capital to be paid up front.

Customers who own a fully paid-up home from Damac Properties are eligible to invest in a new villa or apartment from the developer and take advantage of a tailored scheme.

Amlak Finance will offer a home finance of 60 per cent of the current market value of the existing property to pay towards the new property

NEWSUPDATE

will enhance the historical area of Muttrah and transform the Port Sultan Qaboos into the region's no.1 Waterfront destination, whilst providing the public with greater acess to the Waterfront by reintegrating the port area with Muttrah and the city of Muscat.

Mina Sultan Qaboos Waterfront is a development without equal. It will serve as the gateway to to Muscat. Centred around water, something perpetually valuable and precious, Mina Sultan Qaboos Waterfront will redefine the experience of Musact and provide investors with signifcant opportunity to participate in a unique and unparalleled marketplace offering.

Mina Sultan Qaboos Waterfront is a regeneration initiative that aims to unite the Muscat of yesterday with the vision of Muscat tomorrow. g while the remaining 40 per cent will also be financed by Amlak.

Niall McLoughlin, Senior Vice President, Damac said: “As a leading real estate developer, our in-house mortgage team looks for ways to facilitate the purchasing of a property by offering attractive financing options with preferential terms to our customers.

Residents and non-residents can take advantage of this unique offer and enjoy long-term returns in addition to the capital appreciation similar to prime international real estate markets.”

Customers can receive approvals within 72 hours and take advantage of a quick process with minimal documentation for both UAE residents and non-residents, as well as home finance terms up to ten years or more. g Gulf Property

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Khaldoun Rashid Tabari, Vice Chairman of Drake & Scull International

Drake & Scull gets Dh500m lifeline 62

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Gulf Property Exclusive

abarak Investment, an Abu Dhabi-based private equity investor, said it will provide Dh500 million cash injection in Drake and Scull International, an engineering and contracting conglomerate, as part of a capital restructuring programme, after acquiring the 10.39 per cent shares of Khaldoun Rashid Tabari, the company’s former ViceChairman and CEO. Drake and Scull International (DSI) reported Dh3.2 billion revenue and Dh815 million net loss, compared to Dh4.2 billion revenue and Dh 939 million loss for fiscal year 2015.

The deal will help the troubled regional mechanical, electrical and plumbing (MEP) contractor to overcome the current cash flow crisis due to a large non-payment issue by a Saudi Arabian client – that pushed Drake and Scull International (DSI) to venture into a painful cost-cutting and restructuring programme last year.

The company’s trouble began with non-payment to the tune of more than Dh1 billion by Saudi Aramco, after completing a Dh2.3 billion project in 2012. This resulted a massive cost-cutting and restructuring exer-

“The completion of capital restructuring programme is essential to resolving the liquidity challenges and to rebalance the capital structure of the group. Our immediate priority is to plug-in working capital deficit; improve collection to shore-up liquidity...”

Wael Allan, CEO of Drake & Scull International

cise that saw its major shareholder Khaldoun Rashid Tabari, Vice-Chairman and CEO resigning from the management in October 2016.

The company’s board of directors then appointed global accounting firm PricewaterhouseCoopers (PwC) as strategic adviser to bringing in an investor or a debt restructuring.

Tabarak Investments’ plan of Dh500 million investment through a capital restructuring is conditional – subject to a 75 per cent of the company’s shares being written off to extinguish accumulated losses of Dh1.71 billion.

The deal makes Tabarak Investment as the largest shareholder in DSI with its stake put at 18-20 per cent.

Following the restructuring that includes a 75 per cent capital reduction to

write off its accumulated losses of Dh1.71 billion, will be followed by the Dh500 million capital injection – subject to regulatory approval and could take place in the third quarter of the year – Tabarak is likely to own about 40 per cent of the company, the company’s newly appointed acting chief financial officer Firas Kalthoum told Gulf Property on the side-line of a press conference.

DSI, which has an order backlog of Dh8 billion, reduced its headcount by more than 40 per cent to 18,000 people from April 2016. Further cost-cutting measures might be in the offing as capital restructuring might look into creating a much leaner organisation.

“The transaction reaffirms the commitment of Tabarak Investment to the DSI brand and the promising outlook of

– Feras Kalthoun Acting CFO Drake & Scull Int’l

the Company upon completion of the capital restructuring program which was approved by the shareholders at the Annual General Assembly Meeting held on 4th of May 2017,” a joint statement said. “The company continues to review and optimise its organisational structure by merging and integrating core functions across operating segments to reduce overheads, streamline costs and to improve the bottom line performance.”

The company concluded a series of key management appointments at both corporate and subsidiary levels and the new management team has been recently complemented with the appointment of Feras Kalthoum as Acting Chief Financial officer of the Group.

The company advanced with the capital restructuring Gulf Property

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Khaldoun Rashid Tabari, former Vice Chairman of Drake & Scull International, played a crucial role in establishing the company in the Middle East

programme and received further instructions from the Securities and Commodities Authority (SCA) to proceed with the final regulatory preparations in order to fulfil the approval requirements and to initiate the 75 per cent capital reduction.

Phase 1 (capital reduction) of the capital restructuring programme is expected to be completed within six to seven weeks. Upon completion of phase 1, the company will instigate the execution of phase 2 (Capital increase) of the programme which includes the Dh500 million capital increase to accelerate

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the entry of Tabarak Investment LLC as a major strategic investor in the company.

The initial projected timeline of the capital restructuring programme has been deferred by a period of one month and the company now expects to complete the programme by the end of Q3 2017.

Wael Allan, CEO, Drake and Scull International, commented: “We are pleased to see Tabarak Investment reaffirm their unwavering commitment to the Company.

With their unyielding support, we will aggressively continue to execute our turnaround

strategy and undertake key business transformations and strategic initiatives in collaboration with all our stakeholders.

“Despite the short-term challenges, the company is well positioned to benefit from its leadership position in the MEP sector and to secure profitable projects in the UAE market in the near future.”

Feras Kalthoun, Acting CFO, Drake & Scull, added: “The completion of the capital restructuring programme is essential to resolving the liquidity challenges of the Company and to rebalance

the capital structure of the Group. Our immediate priority is to plug-in our working capital deficit; improve collection to shore-up liquidity.

Our short-term goals are to streamline our business, bolster liquidity, optimise governance and transparency, and secure high-potential projects. The UAE market remains buoyant and we expect to progress steadily with our turnaround strategy throughout the second half of the year.”

Ahmed Kilani, CEO, Tabarak Investment LLC, concluded: “The acquisition of Tabari’s shares is a voice

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DSI History

he history of Drake & Scull dates back to the 1880s, beginning with two British plumbers — Bernard Drake and Arthur Stanley Scull.

Arthur Scull, born in Bristol in 1860, was one of 11 children. At the age of 14, he apprenticed in plumbing to earn a living.

Arthur Scull started his company at a small rented workshop in Milk Street, Bristol in 1881. For the first few years, his "sanitary engineering" business remained small.

In 1886, Bernard Drake borrowed £500 (Dh2,930) from a wealthy aunt to form a company, Drake and Gorham. Both men had installed electric lighting into the homes of European kings. In 1964 Drake and Gorham and Arthur Scull and Sons merged to form Drake and Scull Engineering.

Drake and Scull International established its first office in the region in Abu Dhabi in 1966, and it has since expanded its opera-

of confidence in the DSI brand and the longstanding track record of the Company particularly in the MEP sector in the UAE. The strategic synergies between DSI and Tabarak will be pivotal to the success of the turnaround strategy set forth by the Company earlier this year.

We are optimistic about the prospects of the Company in the long term and we are keen on the completion of the Capital restructuring programme to assist the company during this challenging time, yet promising outlook.”

DSI will look to restructure its debt pile, which stood at

Dh2.44 billion at the end of March, through the issue of a new sukuk or a syndicated loan, Firas Kalthoum said.

Kalthoum said that he had already met three of the firm’s top six banks and said that he was ‘very optimistic’ about restructuring the company’s bank debt. A further Dh3.4 billion is owed in trade debt and other receivables.

"In terms of restructuring the debts, we can definitely [do] either syndication or sukuk. That’s what we are considering. We have tested the waters with some of the banks and they are willing to consider it, but there is noth-

ing concrete yet," he said.

"It will take us two months to formulate a solid plan that [banks] are willing to accept and then we will go to the banks again, like a mini-local roadshow and then close the restructuring."

DSI reported a Dh732.9 million loss for 2016 and a negative cash balance of Dh305 million. In April this year, DSI revealed the terms of its recapitalisation and set a date for shareholders to decide on whether to approve the deal that will help it wipe out accumulated losses of about Dh1 billion and make Tabarak Investment its

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tions to include offices in Dubai, Jordan, Libya, Thailand, Qatar, and Oman, with the leadership and guidance of Khaldoun Tabari, a Jordanian Arab businessman who took over the company's Middle Eastern operations in the Mid 1990's.

Later, Khaldoun R. Tabari took over the company's Middle East operations.

In July 2008, DSI raised Dh1.2 billion by offering 55 per cent of the company's shares to the public in an IPO that was 101 times oversubscribed pulling in Dh132 billion in subscription. The shares were priced at Dh1 each plus an offering cost of Dh0.02 per share. DSI IPO was the last public offer before the global financial tsunami hit the UAE economy in September 2008.

Following the global financial crisis of 2008-09, and in subsequent years, Khaldoun Tabari divested his shares till Tabarak Investment bought over his shares to become the largest shareholder in recent weeks. g biggest shareholder.

The company proposed to cancel 50 per cent of its existing share base of over 2.28 billion shares, the number of shares in circulation, by 1.14 billion. This cuts its liabilities by over Dh1.14 billion, which is equivalent to 115 per cent of the firm’s accumulated losses.

Following this, the company will issue more than 1.16 billion new shares with a par value of Dh1 each to Tabarak Investment, which, as a result, will become the company’s majority shareholder in return for its Dh500 million investment. g Gulf Property

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PROJECTNEWS

UAE building projects value hits Dh836bn

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Gulf Property Exclusive

he combined value of 7,488 active building projects reached US$228 billion (Dh836.76 billion) by June 2017, according to BNC Network, – the largest and most comprehensive project research and intelligence provider in the Middle East and North Africa (MENA) region.

The UAE's construction industry is poised to witness strong growth in coming

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years as more than $34.6 billion (Dh127 billion) worth of urban, industrial, transport, utilities and oil and gas projects are in the tender phases.

While $9.7 billion (Dh35.6 billion) worth of building projects are in tender stage in the country, says the report.

Active building projects constitute all types of commercial and residential buildings but not catering to education, healthcare, hospitality, retail sector which are in concept, design, tender, under construction or on hold.

Of these, 1,059 building

projects belong to the highrise category rising above 15 floors, with a combined project value exceeding US$100 billion (Dh367 billion). The number of mid-rise projects with floor levels of 4-14 storeyed buildings is 2,483 projects with a value of US$66 billion (Dh242.22 billion) while the number of lowrise projects stood at 3,946 with a value of US$61.9 billion (Dh227.12 billion).

The building projects constitute 82 per cent of all active projects in the UAE's urban construction sector and in dollar terms these projects account for 44 per

cent of the total estimated value.

“The strong project pipeline is a reflection of the healthy construction sector, despite weaker global economic growth scenario – an indication that the UAE real estate and construction sectors are defying the global trend,” Avin Gidwani, Chief Executive Officer of BNC Network, says. “While the lower oil price might have dampened the investor appetite, developers and contractors are going ahead with the building projects as planned. A number of these buildings are being developed to meet the

PROJECTNEWS At A Glance

$228 billion

value of building projects in the UAE in 2017

$100 billion

value of 1059 buiding projects rising above 15 floors in the first half of 2017

$749 billion

value of active construction projects in the UAE

$99.4 billion

value of value of construction projects currently under construction and tendering process

$89.9 billion value of building projects currently on hold

anticipated rush during the Expo 2020 mega exposition.”

The latest BNC Intelligence report shows, 5,276 projects, worth US$99.4 billion (Dh364.79 billion) are currently under construction and tendering phase. Of the total 7,488 projects, 1,378 buildings, worth US$89.9 billion (Dh330 billion) were on hold, the report shows.

“Most of these building projects are expected to be completed by October 2020 – before the World Expo 2020 as the country gears up to handle the biggest inbound tourist rush unprecedented in its history,”

Gidwani says. “BNC would continue to diligently monitor the construction projects market in the foreseeable future, serving our growing loyal customer base.”

In June, the number of building projects in the UAE increased by 3 per cent as compared to May, 2017, but in dollar terms, there has been no significant movement.

In June, 24 building projects with a combined estimated value around US$560 million (Dh2.05 billion) were put on hold in the UAE. The largest building project in dollar terms to be put on hold

was Phase 2 of The Royal Estates located in Dubai worth US$350 million (Dh1.28 billion).

The latest BNC Intelligence report shows, a total of 57 building projects with a combined estimated value of US$2.2 billion (Dh8 billion) moved to construction from other stages during the month.

A total of 292 building projects with a combined estimated value of US$3 billion (Dh11 billion) were completed during the month.

There are numerous active construction projects in UAE and the total estimated value

of these construction projects is $749.5 billion. UAE constitutes 50 per cent of the number of active projects in the GCC. In dollar terms, these construction projects account for 34 per cent of the total estimated value of all active projects in the GCC. The UAE has one of the most open economies in the world.The country continues to be a strategic hub, with business-friendly free zones and a rapidly growing economy.

BNC, the largest project intelligence provider in the MENA region, tracks 25,324 live construction projects with a value exceeding $7.2 trillion (Dh26.4 trillion). It publishes more than 250 project updates that are distributed amongst 73,000 executives and professionals every day.

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Building Contracts

The value of new building contracts will hit US$85.6 billion in 2017, up 7 per cent from US$79.5 billion in 2016 in the GCC, according to a separate report by Ventures Onsite.

The UAE tops the regional ranking, with estimated $ 40.5 billion building contractor awards coming up this year, followed by Qatar ($ 16.7 billion) and Saudi Arabia (US$ 16 billion). The 2017 figures confirm the UAE construction market’s positive

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trend, after $32.6 billion worth of projects were awarded in 2016, the highest value registered since 2008.

Thanks to investments in housing, schools, health facilities and public buildings, Dubai’s construction industry is gaining momentum, The Big 5 Heavy report states.

This is further enhanced by the build-up towards Expo 2020, which is expected to award 47 construction contracts worth US$ 3 billion this year.

About 45 per cent of the building projects in pre-construction phase in the region are in the design stage and

32 per cent in the tender for construction phase, promising a robust pipeline of business opportunities for construction players in the GCC. Valued $6.8 billion and $6 billion respectively, Dubai South’s The Villages and The Pulse are just some of the mega projects in the design phase across the GCC attracting construction industry players from around the world.

To effectively respond to the growing demand of building materials and machinery, the organisers of The Big 5 are launching a new dedi-

cated platform for the region’s heavy construction industry to network, collaborate and find new business opportunities.

Construction development in the UAE is not confined within the borders of the Emirate of Dubai: notable projects are sprouting throughout the country. In an effort to broaden its leisuredriven offer, Abu Dhabi is continuing the development of Saadiyat Island, where 1,300 new hotel rooms mostly in the luxury segment - are in the pipeline. Further 3,500 keys in urban hotels are also expected to be

PROJECTNEWS

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BNC Network

Avin Gidwani, CEO of BNC Network

available as part of current plan to increase the contribution of the tourism sector to the diversification of Abu Dhabi’s economy.

Transport projects’ value reaches $87 bn

The total value of 481 active transport projects exceeded Dh321.49 billion (US$87.6 billion) in the first half of 2017, according to BNC Network.

Of these, 364 projects with a combined value of

US$36.5 billion are road projects while 39 projects with a value of US$33.9 billion are rail projects.

The transport sector consists of aviation, marine, rail and road while active projects refer to projects in concept, design, tender, under construction and on hold.

“With Expo 2020 nearing, the UAE government is fasttracking all important road and rail projects to ensure smooth transportation of goods and traffic ahead of the mega global event,” Avin Gidwani, Chief Executive Officer of BNC Network, says.

“Completion of all the trans-

port projects is crucial to the success of the Expo 2020 project, and will support the country’s bids for more such global events in future.”

Of these, 218 projects worth US$20 billion are under construction, 92 projects worth US$29.7 billion in the pipeline, and 110 projects worth US$32.7 billion are on hold.

As per the latest BNC Intelligence report, the transport sector constitutes 4 per cent of all active projects in the UAE and these projects account for 11 per cent of the total estimated value of projects across all sectors in the

NC, the largest project intelligence provider in the MENA region, tracks 25,324 live construction projects with a value exceeding $7.2 trillion (Dh26.4 trillion).

It publishes more than 250 project updates that are distributed amongst 73,000 executives and professionals every day.

It is used by thousands of business leaders and construction industry professionals around the world to track developments, gain insight on projects and do business in the construction industry. BNC covers construction projects, across all sectors including urban construction, mega developments, transportation, utilities, industrial developments and oil and gas and publishes over 2,000 construction analytics annually based on extensive research and analysis. g

country. Four transport projects with a combined estimated value of US$274.6 million moved to construction from other stages during the month of June 2017.

“As we move forward, we expect more road and infrastructure projects to be brought under construction for them to be completed on time by mid-2020,” Gidwani says.

“Infrastructure and connectivity has always remained the unique selling points of Dubai and the UAE and the government will complete the pending projects in time,” he concluded. g Gulf Property

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Indian realty undergos a paradigm shift

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Gulf Property Exclusive

he Indian real estate sector is poised at the edge of a recovery.

Regulations like the Real Estate Regulation and Development Act (RERA), the Goods and Services Tax (GST) and other measures targeted at revamping the housing sector are expected to bring in the much-needed transparency and accountability.

“As GST is modern India’s tryst with destiny, so is 2017

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a red-letter year for Indian realty, being witness to a multitude of policy measures.

These range from RERA the primary driver towards a more regulated, transparent and accountable realty sector, to GST- a key inflection variable for sunrise sectors such as Warehousing, Logistics and Manufacturing, to REITs which is a game changer for commercial assets,” Ramesh Nair, Country Head of Jones Lang LaSalle (JLL), the global real estate advisory, said.

“Residences and homes will be a key beneficiary of the big bang RERA (provided

it is implemented true to form). With it we are on the cusp of ushering in an era of greater transparency and accountability across multiple stakeholders.

“Developers have already started aligning businesses to RERA guidelines and Brokers will need to follow suit, else both are likely to fall by the wayside. Having said that, a marginal dip in residential supply is forecasted in the near term, as only those developers capable of delivering on time will undertake newer assets.

“And why not, since penalties for late deliveries are

steep, not to mention the added whiplash!,” he said.

Residential markets witnessed the impact of the demonetisation drive with a slowdown in sales in the first quarter of 2017. However, units launched witnessed a noteworthy q-o-q rise of 11.8 per cent compared with the fourth quarter of 2016, said JLL in its latest report.

Pune was the highest contributor to quarterly supply across the seven cities in the first quarter of 2017, followed

by Mumbai and Bengaluru.

Most launches were seen in the mid-range and affordable categories across all the

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cities.

“Going forward, the implementation of RERA by state governments will be the key inflection point for residential markets and we expect a slow and steady rise in capital values. Initially, this will be a reflection of reduced supply, as only those developers confident of completing projects timely will undertake new projects. Later, as the market becomes more transparent and well regulated, end-users and investors will find their way back, keeping capital values up,” the report says.

Projects with smaller unit

sizes will witness more traction than projects with larger unit sizes.

A JLL spokesperson says, “With the implementation of RERA, we expect a reduction in new launches across all cities as only those developers confident of meeting timelines will undertake new projects.

“With reducing new launches and a simultaneous dip in unsold inventory we should see a steep appreciation in capital values. Capital values will rise across all cities in the near term, keeping in mind the inflation delta.

In NCR however, where

there is an oversupply, we expect to see stability in capital values.”

Post RERA, major developers are likely to enter into joint venture partnerships or undertake joint development with smaller developers to complete stalled projects.

Transparency in the market is expected to increase.

Home loan rates will look soft in the near future and this will give a boost to residential markets. In its recent monetary policy announcement on 7 June 2017 the RBI, has reduced the amount of money, banks have to set aside (as secu-

“As GST is modern India’s tryst with destiny, so is 2017 a red-letter year for Indian realty, being witness to a multitude of policy measures. These range from RERA – the primary driver towards a more regulated, transparent and accountable realty sector, to GST- a key inflection variable for sunrise sectors such as Warehousing, Logistics and Manufacturing, to REITs which is a game changer for commercial assets...”

– Ramesh Nair Country Head Jones Lang LaSalle

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rity) on home loans. Already banks like SBI have started lowering home loan rates.

Experts are of the opinion that the current slowdown in property sales will be shortlived and things will start improving as the government cracks the whip on unnamed property holders, banks reduce interest rates and RERA gets implemented by the states.

They have said that while there will be a paradigm shift in the country’s real estate sector going forward, the most important will be the fact that global capital flow into real estate will increase further, once the regulations are firmly in place.

“India ranks fourth in developing Asia for FDI inflows as per the World Investment Report 2016 by the United Nations Conference for Trade and Development (UNCTAD). That is endorsement at the highest levels and real estate saw equity investment on a very visible return journey to India last year,” said Mithilesh Mishra, CEO of Genius Properties, Delhi.

“For buyers the real benefits would mean being assured of timely project completion and transparency and complete information on the project and amenities promised, among others. De-

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velopers, on the other hand, will have to change their business model whilst adhering to stringent compliance norms,” he added.

The year 2017 began on a bleak note. With demonetisation making its presence felt, enquiries, walk-ins and sales dried up and the first half of 2017 was largely muted.

There was increased pressure on prices and consumers remained in wait and watch mode. Demand as a result, remained subdued.

Now, the scenario has changed and experts have said that while there is still a lot of confusion among

homebuyers and real estate stakeholders, activity in the market is slowly picking up.

“Some homebuyers have kept their buying decisions on hold until clarity emerges on the new measures. But in the long run, these rules will help organised developers procure land at more appropriate rates, as buyers who were channelling their black money in land buying and holding, as well as fraudulent developers, will be out of the game. This will help in construction of more affordable houses and achieve the housing for all objective,” said Kapil Kapur, CEO, BCC

Infrastructure.

Meanwhile, developers keen to revive buyer interest in the market are offering several schemes. “Some are giving home loans at 6 and 7 per cent and others are offering ‘book now, pay after three months’ schemes. Buyers are also being assured of adjustment of compensation if prices fall further. This has led to a significant rise in interest in ready-to-move-in properties and projects nearing completion,” said Prashant Kumar Chaturvedi, Vice President - Head of Sales, Marketing and Customer Care, Merlin Group,

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NRIs upbeat on RERA and GST

ndian investors are a happy lot, now that Real Estate Regulation and Development Act (RERA) and Goods and Services Tax (GST) has boosted their confidence and increased transparency and accountability in the real estate sector.

Most of the prospective NRI buyers who visited the Indian Property Show were upbeat that things would improve and that they would stop being at the wrong end of a bargain.

K Venugopal, a resident of Deira, said he kept away from investing in a flat in his hometown, Kerala, due to the fact that the sector was unorganized and characterised by fraudulent schemes and developers.

“I’ve been away from India for 25 years now. During this time, there have been so many cases of property developers vanishing with the hard-earned money of investors. It is very difficult to know which group is genuine and which one is fake.

So I, along with many of my India.

Another trend, developers said, would be the rise of ‘hybrid’ working spaces. This refers to the trend where companies lease out parts of, or the entire area, of their office spaces to 'anchor tenant' corporates. In other words, co-working operators and corporates will move into a 'hybrid' sort of space and increasingly rely on each other.

“Co-working spaces are increasingly becoming popular across Indian metros as well as tier-II cities, providing start-ups with flexible working options at affordable

friends, have kept away from buying any property anywhere. But now, with regulations like RERA and GST in place, we can breathe easy.

Investors will get only the best, most genuine deals.”

So what do NRIs look for, when they invest in a home in India?

Sunny Kalathil, a Dubai resident, first checks out the reputation of the builder before investing.

“That is my top priority. A builder has to have solid credentials otherwise my money will go down the drain. Now, with RERA in place, I’m hopeful that I will get only the best.”

The new laws will tighten up things and make it a more property buyer-friendly market For Dhanish Dharman, it is the possession status that is important. Possession status denotes the readiness of the property for moving in.

“Possession status is an important factor for NRIs when investing in a home.

“The problem is that most of the time, in India, projects are delayed by 2 to 3 years, or sometimes even more, which is a huge issue. NRIs don’t want to make losses, rents. Although there is still very limited supply of coworking spaces available at the moment, this segment is slowly but surely moving into boom mode across India, given the many advantages that such spaces offer,” said Manash Kumar of Ocean View Properties, Delhi.

Affordable Homes

Budget 2017 has proposed infrastructure status for affordable housing, a longstanding demand of developers, and also in-

since every penny we spend is earned the hard way. So we hope that RERA will make the system smooth,” he said.

For some, location takes priority. “Usually, developing localities provide good return on investment,” Dharman said.

“NRIs also look at the available infrastructure and amenities before choosing a place,” he added.

Asked if this was a good time to invest, they said that although they were getting good deals from property dealers due to the sluggish nature of the bargain, the market would be more stable once RERA was in effect and there was more accountability.

“It’s a very dicey situation now,” said Santhosh PK, a Dubai-based Indian looking to invest in property in his home country.

“At the moment, developers are offering extremely attractive deals for investing in property. So in a sense, yes this is a good time to buy.

But in the larger perspective, it might be better to wait till RERA and GST plays out.

Those will benefit the investors to a great extent.” g creased the allocation for the Prime Minister Awas Yojana from Rs15,000 crore to Rs23,000 crore, bringing the country closer to realising the Housing for All mission by 2022.

Under this one crore houses are to be built by 2019 in rural India for the homeless and those living in ‘kaccha’ houses.

Affordable housing will continue to see healthy supply, with 1Q 2017 witnessing maximum number of new launches (35%) in the INR 3,000-4,000 per square feet category across key cities, says Ramesh Nair, Country

INDIANREALTY

Head of JLL. “With the triumvirate of Modi, Jaitley and Naidu granting Infrastructure Status to affordable products, developers heave a slight sigh of relief on cheaper funding, including external commercial borrowings (ECB). Question to ponder - Since we are now a ‘One Tax’ nation, can the days of a Uniform Affordability Code be far behind? Only time will tell,” he says.

Then again, Indian realty is about to witness the age of affordable housing. What with real estate investments on the wane and end users on the rise, affordable housing is the way forward. One crore houses are to be built in rural India by 2019, and this vital segment will now see cheaper sources of finance - including external commercial borrowings (ECBs).

Experts have also said that India’s real estate sector will become leaner and meaner, with more industry consolidation. Joint developments and joint ventures will take place between landowners and/or small developers with bigger, better-organised players, smaller developers being bought out by larger players, and struggling developers selling their land banks to players with stronger balance sheets and potential for growth. g Gulf Property

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Indian developers welcome RERA T

he Real Estate Regulation and Development Act (RERA), will help regain consumer confidence in India’s sluggish real estate market and bring in accountability and transparency, property developers said.

At a time when the Indian property sector has hit an alltime low, this new regulation has been welcomed by home buyers and investors and has suddenly reined-in a sector that was at best, unorganized and scattered.

“RERA is good for everyone involved in the real estate business,” said Prashant

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Kumar Chaturvedi, VicePresident and Head of Sales, Marketing and Customer Care, Merlin Group.

While the benefits for the investor are clear, the Act will help regulate the vast number of property developers in the market. It will ensure that only the genuine ones survive, thereby giving investors the best deals.”

Real Estate Regulation and Development Act (RERA), 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The government

has brought in the legislation to protect home buyers and encourage genuine private players. The rule makes it mandatory for all builders developing a project where the land exceeds 500 square metres - to register with RERA before launching or even advertising their project. Not doing so will invite up to a maximum imprisonment of 3 years or fine of up to 10 per cent of the total project cost. Developers will also have to submit as well as upload project details including approved layout plan, timeline, cost, and the sale agreement, that

prospective buyers will have to sign to the proposed regulator. Only developers who fulfil this disclosure clause will be permitted to advertise their project to prospective buyers.

RERA, developers said, is also expected to streamline the funding system in the real estate sector. This, developers said, will formally introduce Escrow accounts in India, thus reducing any misuse of funds.

In an escrow account, the bank and the account holder (the builder) enter into an agreement and appoints a trustee for the account. In

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RERA to take brokers to task

he new regulations in India’s real estate sector will help regulate the numerous brokers that operate unaccounted for, said Ashwinder Raj Singh, Chief Executive Officer of Jones Lang LaSalle (JLL) for Residential Properties.

“RERA is the most positive step taken to regulate India’s messy real estate sector.

The main advantage is that the broking industry, which is fragmented and unregulated at best, will be taken to task once RERA is in place,” Singh said.

“There are around 400,000 brokers in the top seven cities of India. Now, around 80 per cent of them will be unable to operate. So there will be a chance to institutionalise and streamline the sector and consumers will be able to take advantage of professional real-estate advice and deals,” he said.

He thinks, India’s real estate market is poised for a recovery, although it is slow going at the moment.

“Market sentiment at the

real estate projects, the banks themselves would be the trustees, who would then release funds as per the terms and conditions of the agreement.

The Escrow Account Law from RERA India now enforces the developers to submit mandatory land documents, approved architectural designs, trade license and approval letter from the Master Developer.

The trustee banks verify these documents for any discrepancies and permit the developer to open an escrow trust account.

“One of the major bones of

moment is bleak, but we expect this to improve considerably. Foreign funds which were sitting on the sidelines will now start looking India as an investment destination. The end user is already in the market, so is the firsttime buyer. They prefer to wait and watch, but once there is transparency, they will begin to invest again,” he said.

However, there is hope that things will smooth out, he added. “In the last three quarters, the supply of new inventory was lower than demand. Till the end of 2015, inventory was high, demand was low. Since mid-2016, this situation has changed and demand has been higher than the new launches. This will balance out the demand-supply gap and the sector will even out,” he said. Other initiatives like the Goods and Services Tax (GST) and the Benami Property Act will also bring in accountability and transparency, he said. “GST and the Benami Property Act will also have a major impact on how many developers run their businesses. Demonetisation shook up the older ways of working, but contention is the diversion of funds by the builders into different projects or for buying new land. Therefore, timely completion of projects suffered, for lack of funds, resulting in a delay in possession of homes, even after paying the money on time by the buyers,” said Kapil Arora, CEO, BCC infra.

“RERA stipulates that every promoter shall make an application to the regulatory authority for registration of the real estate project in the state. The promoter in addition to several other mandatory documents will have to submit a declaration,

did not affect self-governing developers with the right products targeted at the working masses.”

“The rest have realised it is time now to revamp their existing business models if they want to remain in business at all. Market watchers who had despaired of the Indian real estate market ever shedding its tainted image have every reason to perk up now,” he added.

Currently, the residential property market is dominated by end-users – speculative investors are making a beeline out of real estate as an investment category.

Residential demand is expected to pick up only towards the end of 2017 – but the recovery will be sustainable and based on much sounder market fundamentals than transient sentiment, Singh said.

He was awarded the Most Enterprising CEO at the Real Estate Leadership Awards in 2016, hosted by the Asian Confederation of Business. He is credited with developing and implanting new age technology initiatives to build a scalable and profitable listing and brokerage distribution network. g supported by an affidavit, stating that 70 percent of the amount realised for the real estate project from the buyers, from time to time, shall be deposited in a separate account to be maintained by a scheduled bank to cover the cost of construction and the land and shall be used only for that purpose,” Arora said.

To some extent, the maintenance of a separate account will help track withdrawals, thus leading to better fund management and presumably no diversion of funds,” he added.

Ashwinder Raj Singh,

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CEO, JLL Residential Services, said escrow accounts would help in the timely delivery of projects.

“The purpose of maintaining a separate account is to ensure that project funds are not diverted and projects are completed on time. The developer will have to manage funds more judiciously as he will have to stick to project timelines in order to avoid the penalties involved," he said.

India Ratings and Research has said that with RERA in place, real estate developers may have to rely more on joint ventures with land owners, due to paucity of funds.

“The provision which prohibits presales until the land is in possession and all approvals are in place, along with the provision to escrow a portion of sales proceeds would lead to higher reliance on joint venture projects and consequently the much needed elasticity in real estate prices,” it added.

The rating agency also said that new launches could come down in the short-term due to certain provisions in the bill. At the same time, it also expects consolidation in the industry, with smaller player losing ground to a few top developers with good track record of delivery and compliance. g Gulf Property

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New rules to help BNC Infra’s portfolio D elhi-based BNC Infrastructure Group is on a growth and expansion mode.

The recent regulations and market tightening have only served to strengthen its existing portfolio and the group is looking to diversify into other markets soon.

Their flagship project, Bharat City 2, is a huge gated township, self-contained, where already 1,000 families have occupied homes as part of Phase 1 development. Spread over 50 acres of prime land near the Hindon Air Base, Bharat

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City has earned a name for itself as one of the best upcoming townships in Ghaziabad. It offers 5,000 units with multiple options in sizes and layouts to revel in the pure of joy of living.

“Our homes are reasonably priced, with all the latest amenities one can think of,” said Kapil Kapur, CEO. This year, we plan to deliver two towers as part of Phase 2.

The entire Phase II will be complete by 2019 and will have 15 towers comprising 1900 homes.”

Some of its features include a disabled-friendly campus, a multi- speciality

hospital, complete segregation between pedestrians and vehicles, covered parking, lush greenery, a kindergarten, crèche and school, two-level security with intercom, shuttle bus service to metro and a full-fledged clubhouse with the latest indoor sport facilities, a swimming pool, tennis courts and basketball and badminton courts.

Arora is of the opinion that affordable homes are the ‘inthing’ these days, what with the economic downturn and the loss of sheen of the real estate sector.

“Real estate is no longer an

attractive investment source for people. As a result, there are no investors in the market, only end users. And even those belong to the younger generation, mostly couples who are just beginning a life together, who want a comfortable home that is not too expensive. Then again, we have a lot of NRIs who are coming back home to settle down there for good.

For all these groups, affordable housing is an attractive proposition,” Arora added.

The BCC Group has helped shape India’s skyline, both in terms of residential and commercial properties in

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time, unregulated brokers, it means an end to their business.”

FDI in Indian Realty

Delhi & NCR. The group has about 6.5 million square feet of under development projects and 2.5 million square feet area has already been developed. Till date, they have delivered around 50 prestigious projects including Bharat Residency, Bharat Apartments and NBCC Town (a joint venture between NBCC and BCC) and many more.

“We prefer a conservative approach where we focus on one project at a time instead of carrying out many different projects in cities across the country. At the moment, we are focusing on Bharat City.

In Phase II of this project, one-bedroom apartments will cost around 18 lakhs and two-bedrooms will cost 28-29 lakhs. As much as 80 per cent of the amount will be available as loan. These homes are affordable and offer the very best,” Kapur said.

BCC has plans to launch a new project in Noida, the hub of the National Capital Region (NCR). “It will be a residential project offering three and four-bedroom homes and will be priced between INR 90 lacs and 1 crore.

Construction will start in the next six months and delivery

will be in three year’s time.”

RERA is a welcome move and with it, Kapur said, since it will bring to an end, all prelaunches and help consolidate funds earmarked for a certain project.

“RERA is extremely good for investors. Developers have to be registered with RERA, they have to give regular construction updates, there is a hefty fine for failure to complete a project within a stipulated time and also 70 per cent of the amount collected has to go into a separate account.

For homebuyers, it is happy days ahead, while for the small-

In the backdrop of an ongoing transformation in business environment, Indian real estate is witnessing a robust rise in investment inflow as both foreign and domestic institutional investors are infusing more funds into the sector.

The Indian property market has posted a 40 per cent onyear jump in inflow of funds since the beginning of this year. Institutional investors, including private equity, pension funds, sovereign funds, domestic investors, and nonbanking finance companies have pumped in $3.15 billion in the country’s real estate between January and June end, showed a Knight Frank India study.

According to a separate study by JLL India, India has witnessed private equity inflow of Rs 16,008 crore until June this year compared with Rs 15,601 crore a year ago. g Gulf Property

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Adani’s aggressive expansion continues

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ndia-based Adani Realty has major plans in store for 2017. The youngest arm of Adani Group, India’s top infrastructure and development conglomerate, Adani Realty, has managed to deliver some of the biggest real estate projects over time.

“We are a six-and-a-half year old company and since inception, we’ve delivered over 70 lakh square feet of property. No one would have delivered so much in such a short time,” said Dharmesh Shah, vice-president, Head Sales and Marketing (Residential), Adani Realty.

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“At present, we are developing over 69 million square feet of residential, commercial and social club projects across Ahmedabad, Mumbai and Gurgaon, to name a few.

We’ve plans to deliver another 6 lakh square feet this year,” Shah said. “We have plans to add another 800,000 square feet to Western Heights, our world class project in Mumbai.

“This we plan to deliver in 6 months, well ahead of time.

In Ahmedabad, we have Shantigram, a huge 600-acre township where 4,000 people are staying. We have already developed and

delivered 60 lakh square feet. This is Gujarat’s largest integrated township.

“We’ve been recognised as one of Asia’s top 100 brands and we aim to achieve a turnover of Rs 20,000 crore in the next five years, with over 200 lakh square feet of development. Our aim is to revolutionize real estate, keeping in mind the varied aspirations and lifestyle of new age India,” he said.

Adani has been the only group to have continued production even in lean periods.

It is now developing properties on Dwarka Expressway, one of the most sought-after

destinations in India’s National Capital Region in Delhi. Oyster Grande, located on sector 102/102A, is a sprawling new abode spread over 19 acres, part of a total development of nearly 40 acres. It is scheduled to be delivered by December this year.

Meanwhile, Adani’s projects are getting global attention. Abu Dhabi Investment Corporation (ADIA) along with Shapoorji Pallonji is vying with Blackstone Group for a potential acquisition of Adani Realty’s first business park located near Bandra Kurla Complex (BKC) in a

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deal estimated at more than Rs 1,600 crore (around $250 million), people directly aware of the matter said.

Adani has sought bidders for the recently completed 8lakh-sqft commercial office space Inspire BKC, which is in the midst of finalising tenants like Novartis. While Adani has sought an economic value of Rs23,000 per square feet, the bidders have indicated preliminary offers ranging from Rs18,000 to Rs20,000 a square feet.

Bengaluru-headquartered RMZ, which is backed by Qatar Investment Authority, has also approached Adani,

signalling initial interest.

Global real estate consultancy CBRE is advising Adani on the bidding process. An Adani Realty official said the company was currently focused on getting the occupation certificate from local authorities and the sale process would progress thereafter.

Samsara, another of its projects located on Sector 60 Golf Course Extension Road, Gurgaon, is a 140-acre mega township set to spread into multiple sectors like 60, 61, 62 and 63. All of these sectors fall along the central hub of transport. This area

boasts of the plushest neighbourhood populated by upcoming high-end projects from Ireo, Emaar MGF, Mahindra and Tata Housing.

Adani Samsara Sector 60 Gurgaon is a plush campus with single entry and exit points, manned by security.

Inside the walls of the enclosure are well-laid roads, green parks and open spaces. The project consists of independent floors laid out in low-rise format, with stilt parking on the ground floor.

The project will have a basement and a terrace, the rights of use will be cleared by the developer.

Samsara boasts of features like a club house, sports features, 24/7 backup, kids’ play area, swimming pool, gym, car parking, theatre, and landscaped gardens. There is a 9-hole golf course here as well.

Adani Realty is also planning to focus on affordable housing. “We’re analysing the market and will make an entry into the segment in a big way real soon,” Shah said.

The Indian realty market, in his opinion, is set to get rid of its negative sentiment, with the newly introduced regulations streamlining the sector and bringing in accountability. “The sentiment pervading the Indian real estate market was one of negativity. Investors used to feel cheated and think several times before putting their money into a project. But with RERA, investor money is in safe hands.”

Many small developers are staying away post RERA, Shah said. “Maharashtra has already implemented RERA. There are around 5,000 developers in the state, but now, only 100 of them have announced new projects.”

While RERA is playing out, the market is slow and investors prefer to wait and watch, Shah said. “People want to know how the postRERA scenario will play out.

So at the moment, things are a bit uncertain. But this will change very soon. Our vision is perfectly encapsulated in our philosophy of The Good Life, in which we have conceptualised lifestyles inspired by your biggest dreams and closest relationships, where you can live closer to the people that matter and all the things that make you happy.

Where home spells languid bliss and workplaces inspire confidence and productivity,” Shah said. g Gulf Property

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Endowment Park to help charity

ubai, which is renowned for interweaving innovation into its economic, commercial and cultural goals, is now blending it into charity.

The city is working on the establishment of the first collective-endowment park in the world – the Endowment Park project, which will be established

by Dubai Municipality and Mohammed Bin Rashid Global Centre for Endowment Consultancy (MBRGCEC).

The new park combines the business model of collective outsourcing with the concept of innovative endowment by MBRGCEC. The Park will be established with the members of the UAE community donating the palm trees, which in turn will become an agricultural endowment.

The Endowment Park is located next to Mushrif Park, Dubai and will be spread over an area of 15 hectares. Aimed at opening the doors of sustainable charity to all its community members, the project will also include a charity date-packing factory, which will allocate its entire production towards the needy members within the UAE community. The project has an expected annual production capacity of around 150 tonnes of dates. This will be built on three pillars: Corporate Social Responsibility, volunteering and serving the nation. g

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Eagle Hills to build 2nd hotel in Fujairah

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The new project will be a premium luxury hotel managed by Address Hotels+Resorts

agle Hills has announced plans to build its second five-star hotel in Fujairah, in a bid to attract tourists and investment into the Northern Emirate.

Located centrally on Eagle Hills Fujairah Beach, the master-planned development

by Eagle Hills in the city, the new Palace Fujairah Beachwill be a premium luxury hotel managed by Address Hotels + Resorts.

This follows the unveiling of Eagle Hills’ The Address Fujairah Resort + Spa last year, the first development of its kind in the emirate, located in Sharm. Palace Fujairah Beach is the second project to be managed by Address

Hotels + Resorts, the flagship hotel brand of Emaar Hospitality Group, in the emirate.

It will feature 162 rooms and suites set by the beachfront featuring contemporary architecture and Arabesque patterns, testament to a city embracing the future while staying true to its heritage.

The hotel will be set on prime piece of coastline on the Gulf of Oman.

A focal point of the Eagle Hills development, Palace Fujairah Beach, will offer a health club, select cafes, high-quality dining outlets, separate pool for adults and children and world-class meeting venues - attracting families and business guests.

Low Ping, Chief Executive

Officer of Eagle Hills, said: “Fujairah is a unique location in the UAE defined by its mountain landscape, rich culture, range of extreme sports activities and its direct access to the Gulf of Oman and the Indian Ocean. The city and the wider emirate is very popular among international tourists and UAE residents looking to get away from it all and enjoy a range of activities not available anywhere else in the country.”

Palace Fujairah Beach celebrates its key messaging, ‘where life happens.’ The award-winning brand offers a more personal and engaging experience to guests in a premium lifestyle environment. g

Azizi Group begins site preparation for Meydan 1

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zizi Developments, the fast growing and award-winning Dubai real estate developer, has begun site preparations for construction of the Dh1.7 billion new community project in Meydan One. The first phase of the midrise residential buildings will comprise 2,273 units and a mega integrated retail district surrounded by lush greenery in Meydan One. They will be followed by an additional 17 buildings of 2,162 units in phase two. This new community will encompass studio, one-bedroom and two-bedroom apartments with stunning views of the water canal, Meydan Hotel and Racecourse, Downtown Dubai and Dubai Creek.

Farhad Azizi, CEO of Azizi Developments, said, “We are pleased that the site preparation for this dazzling community has kicked off. With this iconic new neighborhood development, we are once again demonstrating our capability to develop unique

ubai Investments PJSC, the leading, diversified investments conglomerate, said it has awarded a Dh580 million contract to Arabtec to complete the infrastructure works for The Palisades project in Dubai Investments Park [DIP]. The mixed-use project is spread across 13 million square feet with a total builtup area of approximately 22 million square feet and offers a range of residential, retail, office and recreational attractions.

The project is managed exclusively by Dubai Investments, through the Palisades

Development Company.

Dubai Investments also announced that a contract for earth works grading and levelling of the roads has been awarded to Arabtec Construction LLC. The grading work is almost 45 per cent finalized and expected to be completed by September 2017.

“The master plan of The Palisades is aligned with current market requirements.

The infrastructure within the project is being developed in phases at a total cost of Dh580 million,” said Khalid Bin Kalban, Managing Director and CEO of Dubai Investments.

projects that will surprise the world and contribute to this great city’s evolution.”

The site preparation process for the massive development consists of soil clearing and testing, site plan designs and environment impact studies, fencing and grading. Earlier this year, the developer announced the purchase of 186 plots within Meydan One development, which are now amalgamated into 76 buildings. The first phase of this project will be within close proximity to the prestigious Meydan Racecourse, One Mall, Civic plaza with dancing water fountains, indoor sports facility, 4-kilometre water canal, Yachting marina, restaurants, schools

SPOTLIGHT

Benz cars with Damac’s Aurum Villa purchase

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uilding on its exclusive Ramadan promotions that began in the Holy month, Damac Properties, a leading luxury real estate developer in the region, is giving away a new Mercedes Benz car with the purchase of an Aurum villa at Akoya Oxygen.

This latest offer compliments its recently announced promotion, offering buyers 1 kilogramme of gold with the booking of the Dh1.6 million villas, a collection of modern homes that offer a glamorous lifestyle and the latest amenities. g

Arabtec wins Dh580 mn contract from Dubai Investments for Pallisades work

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and hospitals.g

The infrastructure work includes the construction of two 132KV sub-stations, district cooling network, sewage and irrigation systems, fire-hydrant networks, street lights, green parks and public facilities. The Palisades has been divided into plots of varying sizes, ranging from 60,000 square feet to 600,000 square feet, and earmarked for development. The plots will be sold to investors who will develop as per the designed master plan. It is a residential development comprising 20 buildings with 1,450 apartments, 36 townhouses and eight luxury villas.

Palisades Development Company is also offering easy payment plans for investors in the project, payable over a period of three years.

The Palisades is easily accessible and well connected with public transport infrastructure, RTA bus and Dubai metro network, and in close proximity to Expo 2020 site, Jebel Ali port and industrial area, Al Maktoum International Airport, Dubai South and other business districts in Dubai.

Dubai Investments PJSC is a leading investment company listed on the Dubai Financial Market. g Gulf Property

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SPOTLIGHT

Saudi’s Bidaya Group reinforces collaboration with realtors

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idaya Home Finance – a real estate finance c o m p a n y launched to expedite home ownership in the Kingdom of Saudi Arabia, hosted an Iftar gathering with eSimsar, the country’s leading property finder tool in the online space. At the event, Bidaya pledged its commitment towards working closely with the country’s real estate developers to ensure a long-standing partnership that spurs greater acceptance of home finance and ownership in the Kingdom.

Mohamed Badat, Chief Commercial Officer of Bidaya Home Finance, said that Bidaya Home Finance was making significant progress in servicing customers and enabling home ownership, especially for first-time buyers.

“Since the launch, we recognized that our digital presence would be the driving force in making home finance easily accessible,” Badat said.

“Developers are important stakeholders in our journey towards achieving the objectives laid out by Ministry of Housing and Saudi Vision 2030.

Through a holistic approach, the industry will see the dawn of increased competitiveness, efficiency and stronger nation building,” he added. g

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Gulf Property

Emaar to manage project in Makkah

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Emaar Properties’ hospitality arm will operate the Jebel Omar Address Hotel in the holy city of Makkah and help meet the growing demand of religious tourism

abal Omar Development Company (JODC), the region’s leading real estate development company announced in a statement that Emaar Hospitality Group’s premium luxury hotel brand Address Hotels + Resorts has been selected to manage its flagship hospitality project in the Holy City of Makkah. This also marks the first expansion of Address Hotels + Resorts to the Kingdom of Saudi Arabia.

The Jabal Omar Address Makkah, scheduled to open in 2019, is located just steps away from the Grand Mosque. With two elegantly designed identical towers, Jabal Omar Address Makkah

is centrally located and forms the tallest towers within the master development.

An interconnecting bridge linking the two towers serves as a visual landmark of the project. With a built-up area of about two million square metre, Jabal Omar features residences, hotels, malls, retail amenities, prayer areas and other support facilities.

Jabal Omar Address Makkah will meet the growing need for luxury accommodation in Makkah with Address Hotels + Resorts to manage 1,490 hotel rooms and suites including freehold units. There will be two lounges featuring cafes and retail outlets.

Every aspect of the hotel is

thoughtfully created; while a guest room is 40 square metres in size, the suites are at 59 square metres and the presidential suites span almost 390 square metres.

More than 3,000 square metres within the hotel will be set aside for two lounges featuring cafes and retail outlets.

There will also be two signature restaurants, lobby cafes, six meeting rooms, two business centres and two fitness clubs.

Jabal Omar Address Makkah will also have easy connectivity for visitors with the opening of the Haramain High Speed Rail that links the Holy City with Madinah via Jeddah and King Abdullah Economic City. g

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