Property-Times012015.pdf

7/25/2019 Property-Times012015.pdf

1/68

/////Issue 26- January 2015

Zafer Taher, CEO, G&CoPHASE 1 TO BE DELIVERED

EARLY NEXT YEAR

Pg20

Pg18

Pg25

Pg34

2015 ?

THE DEMAND-SUPPLY

EQUATION THIS YEAR

STAY CALM...

AND BE POSITIVEMOHANAD ALWADIYA, MD,

HARBOR REAL ESTATE,

ABOUT OIL PRICE DIP.

GETTING READY...AJMANS AL ZORA

Magazine Search Awards

Timely deliveryis our priority''

'

EXPERTS ANALYZE


2/68

After three decades of experience, local

knowledge and achieving results for the regions

top property owners, developers and investors,

our success is now yours to benefit from.

As a Franchisee, youll get exclusive accessto our enviable Sales & Leasing Listings:

EXCLUSIVE OR JOINT AGENT

&MANY MORE


3/68

*Less Royalty Fees

Following 30 Years of success as an industry leader, we are pleased to announce thelaunch of our unique Real Estate Franchising Opportunitiesso that brokers andentrepreneurs like you, can enjoy the financial rewards and success you deserve.

Open Your OwnReal EstateBrokerage?

COMMISSION*

CREDIBILITYYOUR OWN BUSINESS

SUPPORT

THE ASTECO SALES & LEASING BROKERAGE FRANCHISE

To secure your exclusive opportunity call:

+971 600 54 7773

[email protected]


4/68


5/68

FROM THE EDITOR

HAPPY NEW YEAR!New year brings new hopes and a lot of positivity.

After the long holidays, Dubais real estate marketis slowly getting into busier times. Yes it is a bit slowbut it is stable, which is what the market needsright now. Stability is what everyone is looking forwhile making an investment. While the secondarymarket is gradually picking up, the off-plan marketwitnessed the first launch of the year and needlessto say, the entire development was sold out in twohours. Dubais latest entrant in the property devel-opment sector, Danube Properties has launched itssecond project Glitz in Dubai Studio City, after thesuccessful launch of Dreamz a few months back.

Buyers comprising mostly end users lined up at thesales launch to buy their dream homes available atextremely affordable rates with attractive payment

plans. I am sure we will witness more launches inthe first quarter of this year.

In the first issue of 2015, Property Times features anew look and feel and better and richer content. Inthis issue, we have one of Dubais recent yet impact-ful developers on the cover; Zafer Taher , CEO ofG&Co, which launched in less than two years; Mil-lennium Estates, Grand Views and now MillenniumSquare, in Meydan. A Sold Out sign board is whatevery developer dreams of when they launch a new

project. G&Co sold out the first two projects in record

time and is expected to sell out the remaining unitsin their latestproject Millennium Square soon. Whatsets Zafer apart is, which is also the main reasonwhy he made it to the cover of Property Times this

Binesh PanickerEditor-in-Chief & Co-Founder

P.O. Box: 76460, Dubai, UAE P.O. Box: 347431, Dubai, UAE

MEDIA LAB PUBLISHERS LLCOffice 135, B Block, Al Shafar investmentBuilding, Near 3rd interchangeSheikh Zayed Road, Dubai, UAE,PO.Box: 235504, Tel: +971 4 33 86 724Fax: +971 4 33 86 [email protected]

[email protected]

[email protected]

[email protected]

Licensed by National Media Council

P.O. Box: 102817, Dubai, UAE

OUR TEAM

CONTRIBUTOR

PRINTER DISTRIBUTORS

PUBLISHER

Nicole WalterFreelance Writer

Neha KaulFreelance Writer

P.O. Box: 485100, Dubai, UAE

month, is his commitment to deliver what he prom-ised his investors at the time of the launch. His first

project Millennium Estates is expected to be readysix months before the due date, while the con-struction of Grand Views is also moving ahead ata rapid pace. Dubai needs more developers like thiswho not only launch high quality developments atextremely good rates with good payment plans butalso strive to deliver the project on or before time.

We also have, in this issue, a wide gamut of articlessuch as a study on the demand and supply equa-tion in the market this year, a look residents andcommercial property owners views at Discovery

Gardens, Ajmans latest development Al Zora etcapart from, of course, our regular Q & As and otheruseful columns.

In the meanwhile, the nominations for Dubais firstever Peoples Choice Real Estate Awards are pick-ing up momentum with many leading real estateagencies expressing their confidence to win maxi-mum votes from the people of Dubai. I would liketo wish the nominees all the very best and I appreci-ate their willingness and excitement to be a part ofsomething, which will make a huge impact in themarket in the years to come.

Happy reading!

/blog/propertyonlineae/propertyonline.ae /proponlineuae /propertytimes/ /company/media-labs-llc /+PropertyonlineAeweb/

BINESH PanickerEditor-in-Chief & [email protected]

JATIN DeepchandaniHead of Sales, Marketing & PR

[email protected]

SYED GhayuorSales Manager

[email protected] BhalManager - Special Operations & [email protected]

RESHMI RaveendranSales, Marketing & PR [email protected]

NYSAM K ShahulSenior Graphic [email protected]

TOSEEF Ali TidiwalaAccounts [email protected]

KIRAN ReddyE-magazine [email protected]

SRIKANTH ReddyE-magazine [email protected]

MANAF CKAdmin [email protected]

MARY Grace AntonioExecutive Assistant to Editor in [email protected]

January 2015Issue -26///5

propertyonline.a

e


6/68

U L T R A L U X U R I O U S

S E M I D E T A C H E D V I L L A S

Luxury living, delivered.REALTYRedefined to Reality

NOW SELLING

Live in Meydans first

Semi Detached Villa community

AED 1,250 PERSQFT

MEET USAT THESALES

CENTERCALL

millenniumsquare.ae

800-773

Semi Detached

Villas in Meydan

One of its kind

Each villa is designed to be an end unit and has

3 sides access around it with adequate space for

landscaping and a swimming pool.

70%on completion

On booking

After 6 months of bookingAfter 12 months of booking10%

RERA # 946RERA #1021

Project RERA # 1612

4 & 5 Bedroom Semi Detached Villaswith Maids room, Size 3,479sqft


7/68

08NEWS AND ANALYSIS:Glitz by Danube sold out

10NEWS AND ANALYSIS:

Update on Remraam by REIDIN.com

12Column by Nita Maru, TWS Legal Consultants

14PROPERTY EXPERT: Dounia Fadi, elysian

16MORTGAGE EXPERT:

Feyisesan Ekundare, MortgageMe

18Column by the Wolf of Real Estate

32Meet the agents

46Manchise: Column on by Jitheesh Thilak

52Exclusive property listings

G&Cosurges ahead

2015:Dubai market

Al Zoracomes alive

More hotelscoming up in Dubai20 26 34 41


propertyonline.a

e


8/68

OUT IN2HOURSGLITZBY

DANUBE


p

p

y

NEW

S&ANALYSIS


9/68

The very first day of the Danube Properties sales

launch for their second realty venture Glitz byDanube, saw all their apartments sold out withinthe first two hours of sale with constant requests

coming in. A sales meet organised for investors at theGrand Hyatt Dubai, saw an overwhelming number of reg-istered prospective buyers. Danube Properties, the prop-erty development arm of Danube Group established in2014, was started with the aim to build Luxury residentialproperty for the middle-income group. The divisions firstproject Dreamz, with 171 luxury townhouses, were soldout within the first day of the sales launch and receivedmore than 2,000 enquiries prior to the launch. Glitz byDanube, a project worth AED300 million, saw that number

increase fourfold.

Rizwan Sajan, Founder and Chairman of Danube Group,commented, We are very pleased with the response toour second project and it has further cemented our rep-utation as a developer of peoples choice. Danube Proper-ties was launched to develop luxury homes at affordableprices in the market and we have successfully managedto do so with both our projects. The construction businesshas always been the key for driving growth in the countryseconomy. According to the Q2, 2014 report by BusinessMonitor International, construction projects worth AED778billion are under construction in the UAE. The recentannouncement of the Expo 2020 reflects the growing

strength of the Emirates and expected boost in the econ-omy. Being a leader in the building material industry, wehave been associated with a diversified portfolio of prop-erties in the UAE. It is because of our years of experiencethat we have an unwavering faith in Dubais real estatemarket and chose to step into a different realm of theproperty market. As an organization, we are excited andready to extend our committed support to the nation, toposition UAEs pioneering role as a solid repository whichwill bring business and promote growth in the economy,Rizwan added.

The spacious homes range in housing area from 470 to

1,645 square feet in each apartment block of eight levels.The apartments feature contemporary design, luxury andcomfort within a setting of lush landscape. Each flat willcome with a fully fitted and equipped kitchen and highstandard finish from the countrys largest building mate-rials and interiors supplier, Danube. The apartment blockwill include some amenities like roof top golf course, lei-sure deck with a barbeque station, kids play area cum partyhall, state-of-the-art health club and much more. Makingthis sale more attractive is the payment plan being offeredby Danube to long-term investors and end-users, whichrequires the buyer to pay 10% down payment followed by15% in 60 days. The balance amount is paid in 75 equal

monthly installments of only 1% each.



10/68

AHMET KAYHAN

CEO, REIDIN.com

Remraams growth as a family-oriented community over the past sixmonths has been primarily due to the facilities and amenities on offer forresidents. By Binesh Panicker

REMRAAM CONTINUES TO

AMUSE AND RISE

NEW

S&ANALYSIS

Located on the new Emirates Road (erstwhile Dubai BypassRoad), Remraam, developed by Dubai Properties Group, reg-istered the maximum growth in terms of rentals at 25% inRERAs latest Rental Index; a testimony to the growing popu-

larity of the community.

Well maintained lawns, pools, tennis courts etc are some ofthe highlights of this community, which is now easily accessi-ble from differentparts of Dubai. Property Times, is associationwith REIDIN, brings you the latest update in terms of rentals andprices in this community as well as how it has fared over the pastfew months.

p

p

y



11/68

Source : REIDIN.com

REIDIN.comis widely used by real estate agents and investors for reliable, well-researched information on the countrysreal estate sector. REIDIN.com, founded in 2007, is a leading real estate information company focusing on UAE, Turkey andother emerging countries. REIDIN.com helps professionals and individuals easily access the real estate information they needto make more informed investment, purchase, sales, rent, mortgage, finance, development and management decisions.REIDIN.com Data & Research Team together with a global network of information partners endeavours to provide high-end

analysis and research support to its clients.

NEW

S&ANALYSIS

24/7 SECURITY

LUSH GREEN SURROUNDINGS

SPACIOUS CHILDREN'S PARK

THREE SWIMMING POOLS

BASKET BALL AND TENNIS COURTS

BBQ AREA IN EACH CLUSTER

SPACIOUS TERRACE INSOME APARTMENTS

15 MINUTES FROM AL MAKTOUM

INTERNATIONAL AIRPORT

25 KMS FROM EXPO 2020 VENUE

RENTAL RATESOF REMRAAM

STUDIO 2 BEDROOM

1 BEDROOM 3 BEDROOM

UPCOMING GEANT SUPERMARKETAND OTHER OUTLETS

propertyonline.a

e



12/68

Nita Maru

LLB (Hons) UK | Solicitor andManaging Partner

TWS Legal Consultants

Nita Maru, a Solicitor and Managing Partner of TWS Legal Consultants sharessome legal advice regarding the above.

THE UAE INHERITANCE SYSTEM

ls | Probate | Business Succession Planning | Company Formation | Contracts | Family & Divorce Matters

QUALIFIED SOLICITORS

DEDICATED TO PROTECTING YOU

YOUR FAMILY AND YOUR ASSETS.

p

p

y

As if expat life were not fraughtenough with challenges andcomplications, families of thosewho invest in properties here

face further complications in the saidevent that the property owner passesaway intestate.

How different is the UAE inheritance sys-

tem with that of other countries?

In the UAE, inheritance for Muslim nation-als is guided by Sharia laws, while the law

of the deceaseds home country can beapplied for non-Muslim expatriates. Sha-ria is not a codified law and is capable ofadaption, development and further inter-pretation. Matters of inheritance comingbefore the Dubai courts are heard by oneor more judges. Juries are not used. Further-more, unlike in some Western jurisdictions,there is no system of precedent in Dubai orthe UAE.

However, there are many uncertaintiesregarding real estate inheritance issues.Unlike other jurisdictions, the UAE does

not practice right of survivorship (prop-erty passing on to surviving joint ownerupon death of the other, as would be thecase in Commonwealth jurisdictions),and the local courts will need to make thefinal decisions.

What are the most common inheritance

concerns of clients who own property

here and what are the solutions?

The most common concerns are from expa-triates that have bought property here either

in their sole name or jointly with their spouse.They are confused as to which inheritance

ria law principally operates by a system offorced heirship or reserved shares.

Whereas the Civil Code states, in one part,that the law of the home country appliesto matters of inheritance, in another part itstates, that where a will made by a non-Mus-lim involves the disposal of real estate in theUAE, then UAE law applies. This is consistentwith the fact that in general, in the UAE, thelaw of the state where property is locatedapplies to real property rights. This conflicthas caused confusion amongst non-Mus-lims as to the inheritance of their property

upon their demise. To clarify the positionThe Personal Status Law 2005, was passedto add clarity to the terms of the Civil Code.Legal opinion in the UAE remains divided onwhether this conflict is real or not. Conse-quently, expats are becoming more receptiveto the idea of owning property in an offshorecompany which is not subject to Sharia lawfor the distribution of assets after death,because technically, a company cannotdie, even when an individual does. Propertyowned by expatriates is often contended inthe courts after death, whereas those whichare legally owned by a company will never

be. In real terms, the death of a homeownercan often cause a family grief and traumadue to lengthy inheritance processes, butthese can be avoided, if the unencumberedfreehold property is legally owned by acompany instead.

Why is it important for expats living in

the UAE to have a will, and what are

the consequences of not having a will

in place?

For expats living in the UAE, there is a very

simple reason to make a will. The Govern-ment of Dubais official website states that

EXPERTADVICE

laws apply to their assets upontheir demise, and usually assumethat the laws of their native coun-try automatically prevail over localSharia laws. Inheritance laws inDubai are not as straightforwardnor the same as those back in the/in some Western countries. If anexpatriate owns property in Dubaiand passes away, the laws of their

home country may not apply totheir assets held within the UAE,especially those that are fixed andimmovable. Matters of inheritancein the UAE are governed by FederalLaw No. 5 of 1985 regarding the lawof Civil Transactions in the UAE (theCivil Code), and by Federal LawNo. 28 of 2005 regarding the UAEPersonal Affairs Law (the PersonalAffairs Law). As a general rule,inheritance issues for Muslims aredealt with in accordance with Sha-ria, whereas for non-Muslims, the

law of the deceaseds home countrycan apply. Succession under Sha-


13/68

Call: +9714-4484284

Email: [email protected]

Website: www.willsuae.comwww.twslegal.ae

TWS Legal Consultants

Office Suite 3001,

HDS Tower, J L T , Dubai.

Tel: +971 4 448 4284


Website: www.twslegal.ae

and www.willsuae.com

FOR FURTHER

INFORMATION

PLEASE CONTACT:

propertyonline.a

e

the UAE Courts will adhere to Sharia law inany situation where there is no will in place.This means that if you die without a will or asuccession plan, the local courts will exam-ine your estate and distribute it accordingto Sharia law. All personal assets of thedeceased, including bank accounts, will befrozen until liabilities have been discharged.

A wife who has children will qualify foronly one-eighth of her deceased husbandsestate, and without a will or estate planning

will work with the DIFC Courts forthe production of grants and courtorders for the distribution of assets.As the grant is issued by the DIFCCourt, it will be directly enforceablein Dubai without the need to gothrough the Dubai Courts. Also, as acommon law jurisdiction, the useof the DIFC procedure would allowfor testamentary freedom for dispo-sitions for non-Muslim expatriatesand a speedy and orderly admin-istrative process of a deceasednon-Muslims estate in Dubai.TheDIFC will be the first jurisdiction inthe MENA region, where non-Mus-lims will be able to register a willunder internationally-recognizedcommon law principles.

If my husband dies, will our joint

bank accounts get frozen?

In principle, the government will

freeze accounts until all liabilitiesof your husband are cleared such

EXPERTADVICE

as loans, credit cards and business debts;this can happen within 1 hour of a fatality!The procedure for reactivating the accountsis complex.

Mr Jones and Mr Davies are business

partners and equal shareholders in a

LLC company in Dubai, in the fash-ion / clothing trade. Their business is

growing rapidly and they are extremely

successful. Mr Jones is concerned

that in the event of

death of either one

of them what the

implications are.

In the event of a shareholdersdeath, local probate laws are

applied to a business, butthe results may

be unpredict-

able as sharesdo not pass

automaticallyby survivorship, nor can another family

member take over in lieu. However, we cansecure arrangements to avoid lengthy local

probate and guaranteebusiness continuity.

At TWS, we understand the implicationsand importance of planning for the futureas an expat in the UAE. Can you afford notto talk to them ?

in place, thisdistribution

will be appliedautomatically.Even sharedassets will befrozen until theissue of inheritance is determined by thelocal courts. There is also no automatictransfer of shares where businessesare concerned.

Recently I have heard about the

upcoming DIFC Wills and Probate

Registry . How does the impending

Registry help expatriates with assets

in Dubai?

The upcoming DIFC Wills and ProbateRegistry will provide a mechanism fornon-Muslims with assets in Dubai onlyto pass on their estates according to theirwishes. The rules governing the Wills andProbate Registry will complement existingUAE laws on inheritance for non-Muslims,and provide non-Muslims with the optionand right to choose the way in which theirestates are distributed; they will have thefreedom to distribute their assets as they

wish. The DIFC Wills and Probate Registrywill be within the DIFC jurisdiction and


14/68

If you have any queries about buying or renting, please email at [email protected]

Our expert answers the queries about your real estate investments.

w i t h p r o p e r t y e x p e r t

Depending on the number of bed-rooms you require the area would dif-fer. I always advise clients to purchase

from a good developer, as later when you planto resell it will be so much easier to do so. With

AED1.5 million you can purchase a one bed-room or studio in the Marina or Downtownarea. However, the one bedrooms with thebest developers still exceed the AED1.5 millionmark and a studio would be more realistic.The good developers include Emaar, Trident,Damac and Select Group. The prices for theirone bedrooms with a good view usually start atAED1.6 million up to as high as AED2.3 million.To conclude, I would advise purchasing a unitin the most popular areas, so that whether themarket is up or down will still be sought after.These area include Marina, JBR, Downtown andPalm Jumeirah.

This will depend on whether youare an investor or an end user. Asan investor keeping the Down-

town units will be a better choice especially

if you are the first owner who have boughtdirectly from the developer or at very reason-able premium from the secondary marketas renting and receiving the rent will allowyou to achieve a high ROI, also at the timeof selling; your money will not be stuckin one place and you may sell one andkeep one. If, however, you are an end useracquiring a villa will be a better choice, asyou will have bigger space with less annualservice charges to pay. Captain gain canalso be achieved if the location of the villa isvery strategic.

I am a mortgage buyer with a

budget of AED1.5 million. Which

areas and what type of properties

would you recommend?

I would personally recommend goingfor off plan as most of the off planproperties from Emaar are branded

as either The Address or Vida, The prices arestill lower then ready assets in the same area.

You also do not expose your capital upfront as you follow payment plan and If youinvest in the right off plan project your capi-tal gain is higher annually compared to theready properties appreciation, most impor-tantly your future ROI is higher than the oneyou receive from ready assets.

You can off load and resell off plan assetsquicker and easier then the ready one. Whenbuying off plan you have better choice onthe unit size, location and view.

My friends are advising me to

invest in off plan properties rather

than ready properties. What is the

right thing to do if I am looking at it as

pure investment?

I have a couple of properties in

Downtown. Is it a good idea to sell

them and buy a villa in an estab-

lished community?

Dounia Fadi

Managing Directorelysian04 323 4545elysian

Maral Khalil Mira Martinova

Sheikh Zayed road, Dubai

elysian


p

p

y

EXPERTADVICE


15/68

BUYINGBUYING

SELLINGSELLING

RENTINGRENTING

[email protected]

Dubai: 04 323 4545Abu Dhabi: 02 409 0000

G l o b a lelysian.luxury

BUY SELL RENT PROPERTY MANAGEMENT

PROPERTYPROPERTYM A N A G E M E N TM A N A G E M E N T

Awarded Top 3 Agency in Dubai by RERA & DLD

Dubais Most Popular Broker Award 2014

Whatever your property needs are..

...all the signs point to,

Whatever your property needs are..

...all the signs point to,


16/68

If you have any mortgage related queries please email [email protected]

Looking for a mortgage? Our expert answers your queries about securing a mortgage in Dubai.

w i t h m o r t g a g e e x p e r t

Mortgage brokers and consultantsperform similar roles but the natureand scope of both activities vary.

For example, mortgage brokers in the UAE-offer a regulated financial activity Bothare responsible for ensuring the advice thatis appropriate for the borrowers' circum-stances, but only the broker is held liableby the regulating body if the advice is latershown to be defective. The consultant, onthe other hand is not. Thus, the work under-

taken by both the broker and the consul-tants depend on the depth of their serviceand liabilities. That being said, the goal ofboth is to save their clients as much moneyas possible by offering the best advice for theclients circumstances.

Brokers and consultants achieve this byassessing the client's circumstances via inter-views and mortgage fact find forms and faceto face interviews - this may include assess-ment of credit history, which is normallyobtained via credit reports of affordability,which is verified by income documentation,

and of future plans to determine the optimalduration of the proposed mortgage loan;scanning the entire market to find mortgageproducts that fits the client's specific needs- This is usually carried out in conjunctionwith the client wherein a detailed compar-ative analysis report is compiled on multi-ple products (four of the best in the marketvis--vis the clients financial position andprofile). This report highlights the pros/consas it relates to the clients needs and the best

What exactly is the role of a mort-

gage broker/consultant? Do you

charge a percentage of the mort-gage value or a fixed price?

Depending on the lender, the clientsprofile, the transaction type andif the information provided by the

applicant is factual, getting a pre-approvalusually takes anywhere between three tofive days.

The pre-approval process is basically thesame for all lenders and usually involvescarefully examining the applicants submit-ted documents, conducting a credit checkwith the UAE central bank to assess theapplicants financial position, conducting asecurity check to determine applicants sta-tus, determining the applicants debt serviceratio and eligibility status and coming upwith an approved loan amount based onthe applicants risk profile.

From the date of submitting the

application, how long does it to

get a mortgage pre approval?

What are the different stages?

In the UAE, on a combined monthlysalary of AED40, 000, you will be eligi-ble for a AED3 million loan if you have

no credit cards and zero existing liabilities. It

My wife and I have a combinedsalary of AED40,000 per month.

What is the maximum mortgage

amount we can avail of? How do we

apply together for the mortgage and

who will be liable for repayment?

EXPERTADVICE

suited product is then selected; assisting theclient in gathering all the relevant docu-ments required for a mortgage applicationand securing a pre-approval from the cho-sen lender; assisting in completing a lenderapplication form, clarifying legal disclosuresand submitting the required applicationdocuments to the lender; and following upon the transaction until disbursement whilekeeping the client updated at all times andbeing on ground to ensure that the land

transfer process at the Land Department isexecuted seamlessly.

The service charge can be anywhere from0% to 1.5% of the mortgage loan amount.Some firms charge a fixed price but ideallycharges are based on the level of difficultyin executing the mortgage transaction; thenature of the mortgage transaction; the levelof the standard of service provided; and theclients profile.

Feyisesan EkundareMortgageMe.aeBusiness Development

Middle East/AfricaM: +971 050 4168 5

is important to note that if the income/pro-file of one partner is sufficient to guaranteemortgage loan eligibility, then the incomeof the other partner will not necessarily be afactor in the loan eligibility/qualification pro-cess. However, on a joint mortgage with thetitle deed in both names, both owners will befinancially liable whether or not repaymentis being handled by either partner.


p

p

y


17/68


18/68

T

here is no denying that oilis really, really important.Those that dismiss the pos-sible effects that significant

shifts in supply, demand, prices andpolitics on economies will be deny-ing history and ignoring logic. Butthose that overestimate the effect oftumult in the oil industry only serveto exacerbate or magnify fears ofunlikely events occurring. If thereis one thing that we should havelearned from the recent global finan-cial crisis, its that cooler heads are

more likely to prevail. The reason whythis should be is that cooler headsare more adept at separating emo-tion from logic, cause from effectand fiction from fact. The recentreactions to the dramatic reductionin oil prices have been, while under-standable, disturbingly overdone.Why disturbing? Because reactionsoften reveal underlying thinking (orlack thereof) that drove recent reac-tions far from rational. The reactionsof stock markets globally, mainly oncue from the US, were noteworthy

because of their rapidity and severity.They were also noteworthy becauseof the lack of cool headed analysisthat should have been applied to thedramatic price shift that theworldsmost vital and essential commodityexperienced. The old adage of panicbreeds panic sprung to mind as theflurry of phone calls that I receivedfrom investor clients, finance brokersand journalists provided me with abarometer as to the level of uneasethat surrounded the likely effectof the oil industry machinations

OIL COOL HEADS REQUIREDMohanad Alwadiya, MD of Harbor Real Estate & Instructor at the Dubai Real Estate Institute, the official

training & certification arm of the Dubai Land Department

MARKET

January2015Issue -26///18

p

p

y


19/68

on the direction of Dubais realestate industry.

The most disturbing theme

that was common to all the callsI received was the short-sighted-ness of the opinions and concernsbeing offered. Little thought wasbeing given to a balanced analy-sis of what a decline in oil pricesreally means in terms of demandfor Dubais real estate in the longterm. For a start, those in the oilindustry understand that, giventhe costs of exploration and highlevel of capital required to com-mence green-field operations,

careful consideration must begiven to possible price fluctua-tions to ensure continuity of prof-itable operations. In ensuringthat excess profits in thetimes of high prices areheld in reserve forthe times whenprices fall,establishedplayers inthe indus-try can

smoothout thepeaks andtroughsof oil rev-enues. So,while many ofthe shortsighteddoomsayers werepredicting a virtualhalt in public spendingand infrastructural investmentin the UAE, they forgot that a vir-

tual decade ofrecord oil priceshas enabled Abu Dhabi alone toaccumulate an estimated US$800 billion in reserves. Needlessto say, it would take an extendedperiod, possibly a decade or more,of severely depressed oil prices, forthose reserves to be diminished.Not that Dubai would be whollyrelying on those reserves anyway.

With an economy that has diver-sified to the extent that only 6% ofthe Emirates GDP is reliant uponoil, and that a lower oil price willactually assist the growth of moreprominent economic drivers suchas trade and tourism, the Emiratedoes not appear to be particu-larly vulnerable to a temporary dipin oil prices.

Similarly, the establishednon-government oil conglomerateswhich enjoy lower costs of pro-duction due to more establishedoperations and older, lower costextraction methods are also in a

position to absorb a lower oil price.In reality, it is only the Johnny comelately high cost operations, some of

which are highly lev-eraged, that are

threatened.But as

theysay,

thereis

nothinglike a good

industry shake-out to bring markets

back into equilibrium. Which is

not to say that there are no short-er-term advantages to a lower oilprice. There are. If you come froma country that has to import all ofits energy needs then a decrease inthe price of oil can help relieve thepressure on costs associated withmanufacturing, distribution, travel,tourism and even the cost of com-muting for any family with a car.

The increase in disposable incomecan be a significant catalyst to eco-nomic growth, something which isbeing chased by every country inthe world.

It just so happens that manyinvestors that enjoy the returns thatDubais real estate contributes totheir coffers come from countriessuch as India, a country whichbenefits enormously from cheaperenergy. As a matter of fact, otherthan Russia which is mired in issueslarger than just the price of oil,the vast majority of nationalitiesthat comprise the Dubai investor

mix will either not be affected orwill tangibly benefit from a loweroil price. So why the panic? Therehas been almost universal agree-ment that the real estate Industryin Dubai has achieved a level ofmaturity that enabled it to suc-cessfully manage the huge risksassociated with being the hottestreal estate market in the worldover the last couple of years. Sowhy would it succumb to this latestdevelopment and collapse with a

resounding crash? Well it wont,simply because there is no funda-mental reason why it will which willpass the test of reason and logic.Unfortunately, many of the calls Ireceived came from shortsightedstakeholders, some over leveraged,whose debt position is such thatany slight perception of increasedrisk generates irrational behavior.They easily gravitate to doomsayerswho can only see the negative sideto any equation adding momen-

tum to baseless fears and negativerhetoric. As an industry, we need tounderstand that there will alwaysbe change and challenges. It is ameasure of our maturity, as to howwe consider, analyze and addressissues that threaten to affect ourdesired state or outcomes.

Clearly, we have a way to go.

MARKET

January2015Issue -26///19

propertyonline.ae


20/68

COVERSTORY

The biggest challenge for anew developer in a mar-ket like Dubai, which wentthrough a downturn, is to

gain the confidence and trust of the

buyers and investors. G & Co suc-cessfully managed to launch threeprojects with two of them gettingsold out immediately while the thirdone is being sold currently. However,the developer, although very new atthe time of their first project in March2012, was quick to realize that whatmattered was to deliver a high qual-ity project on time and if possible,before time. Their first project Millen-nium Estates in Meydan was sold outin 40 days and it gave G&Co a lot of

confidence to launch their second

G&Cois all set to create history in Dubais real estate market. The developers first of the three projects so far, MillenniumEstates in Meydan, is on track to being delivered six months before the original handover date. ByBinesh Panicker

TRUST

project; Grand Views, which was alsosold out in record time, followed bythe third project Millennium Squarelaunched recently.

Zafer Taher, CEO, G&Co, says theybelieve in delivering good qual-ity projects on time so that buyerscontinue to have faith in them inthe future.

ZAFER on

The beginning

The thought process started sevento eight years back. We realized likemany other investors that Dubais

real estate market had huge poten-tial and we thought of creating afund in 2006-07, which was a privateequity fund where people couldinvest in to buy some good assets in

Dubai. We started buying what wethought at the time potential prop-erties that, in the future, could give usgood returns.

One of those assets, which wepurchased in 2006, was a large plotof about 5 million square feet of landin Meydan. It was still a desert butthere was a talk in the town aboutMeydan becoming a massive com-munity in the future. We thought of itas a location, which would be central

and close to everything and become


p

p

y


21/68

a prime asset in the future. We hadalso acquired assets in Khawaneejand Emirates Road. In beginning of2008, we realized that perhaps wemight be facing a scenario. We didnt

predict the global melt down, but wethought that perhaps the interna-tional markets were a bit jittery at thetime. We obviously had good finan-cial advisors in the fund, who advisedus to wait for six to seven monthsbefore we would launch the proj-ect and they were right because inAugust things started looking reallydire and by November you knowwhere we were.

So we had to make a difficult

decision: whether to leave the asset

and wait for the crisis to be over orsell and cash out at whatever pricewe could get. We knew Meydanwas such a prime location. Know-ing Dubai very well, knowing that

one day we will be so central, wedecided to keep it, which was a verygood decision.

We sat on the assets until 2012 at avery high cost, when people startedtalking about a recovery in the mar-ket, but still nobody was talking aboutlaunches. However, we decided, afterconsulting our sales partners andadvisors, to launch the project as wefelt the grounds were fertile enoughand that people wanted Dubai to

come back into the game. And in

March 2012, we took the plunge. Forthe record, we were the first devel-opers to launch a project in Dubaiduring the period of recovery. Wequickly realized that there was a lot of

appetite in the market for good proj-ects that offer fundamentals such asgood location, right price point andgood design.

Millennium Estates

G & Co was the only developer atthat time offering off-plan propertiesand the market was still reeling fromthe past three to four years of uncer-tainty. We had to offer something

special and, with our business part-

FOR THE RECORD, WE WERETHE FIRST DEVELOPERS TO

LAUNCH A PROJECT IN DUBAIDURING THE PERIOD OF RECOV-ERY. WE REALIZED THAT THEREWAS A LOT OF APPETITE IN THEMARKET FOR GOOD PROJECTSTHAT OFFER FUNDAMENTALS

SUCH AS GOOD LOCATION,RIGHT PRICE POINT AND GOOD

DESIGN. ZAFER TAHER,CEO, G&CO


propertyonline.a

e

COVERSTORY


22/68

COVERSTORY

ners and advisors, we decided theprice point and payment plan mighthelp overcome those fears. Thereis, of course, a risk for the developerbut we also have to think of the endusers as they are also taking an equalif not larger risk. If you try to removea little bit of that concern by mak-ing the payment plan more flexible

and achievable, then the end userwill be more confident. Millennium

Estates, which is worth AED1.5 bil-lion, features 198 luxury villas locatedon Meydans south extension. ForG&Co, it was our first project andwe needed to prove ourselves inthe market. It was very difficult fora newcomer to come into Dubaiafter the crisis and launch a proj-ect. We took a conscious decision

that we should get the basics right.If you want to succeed you need to

do better than others, you need tooffer bigger, higher specs at a lowerprice point.

That was the first point. The sec-ond point was delivery. The entireproject was sold out in 40 days, asthe buyers really liked the location,

the quality and the price point. Wehad to do a lot more in terms of pricepoint, design and payment plan. Thepayment plan was 25%-75%, whichwas unheard of. Now MillenniumEstates is on target to be deliveredsix to seven months before thedue delivery date. The villas will beready for handover by June or Julythis year.

The sizes of the villas range from5,400 square feet to 6,800 square

feet and will also feature large green

IF YOU WANT TO SUC-CEED, YOU NEED TO DOBETTER THAN OTHERS,YOU NEED TO OFFER

BIGGER, HIGHER SPECS ATA LOWER PRICE POINT.

ZAFER TAHER

p

p

y



23/68

Brasilia

Visit: by appointement

Dubai, JLT Cluster N, Jbc 4 Tower 1302,

P.O Box 309130 JLT Dubai, U.A.E

Showroom Tel: +971 44286688

Faxline: +971 44278833

E-mail: [email protected]

www.designmobl.com

Design Mobl @design_mobl DESIGN_MOBL

Follow us on:

NOW OPEN

The Outdoor Furniture


24/68

COVERSTORY

spaces with walkways and commonparks. We started selling the unitsat AED1,050 per square foot, whichwas at that time about AED100 toAED200 below the nearest bench-mark. In phase II, we had incrementalprice increases of about AED75 per

After the successful launches of Millennium Estatesand Grand Views, G & Co recently announced theirlatest development in Meydan; Millennium Square,which is an AED2.8 billion high-end residential com-munity. The rapid construction progress of the devel-opers previous two projects has further cemented G& Cos commitment to delivering their projects on orbefore time, which will go a long way in boosting the

confidence of the buyers and investors. This new com-munity will have semi-detached villas in line with theexisting demand in the market.

The size of a villa is 3,479 square feet with the pricesstarting from AED4.3 million. Millennium Square alsoboasts an attractive and flexible payment plan of30%-70%. According to the developer, like its previousdevelopments, Millennium Square is also attractingattention from a huge number of buyers, with 100units already sold within days of the launch. The

project is expected to be delivered by the last quarterof 2016.

square foot. We target 25% internalrate of return (IIR) on its investmentin the project. With MillenniumEstates its close. Remember the costof financing for us because of thepayment plan is higher and the costof construction is much higher than

your typical development. Perhapsour return on investment is lowertoday than where it should be, butwe believe that building the brand-name and taking it forward on theback of Millennium Estates will helpus achieve better results in the future.Our buyers include Emiratis, GCC

nationals, Indians, Southeast Asians,Chinese, Russians and Europeans. Itis a mix bag; its a typical textbookDubai demographic.

Grand Views

It is a continuation of MillenniumEstates. We listened to our buyersand felt that there was a need forsmaller units for smaller families butwith the same quality that G&Co

offered in Millennium Estates. GrandViews is an AED2.48 billion develop-ment, featuring 300 five-bedroomtownhouses and 176 villas.

The villas were sold out in no time.The construction has started alreadyand we will try and deliver slightlybefore the due handover date tokeep this track record going. It will beready by end of 2016.

AED1.5BILLION(The total valueof Millennium Estates)

AED2.48 BILLION(The total valueof Grand Views)

AED2. 8BILLION(The total valueof Millennium Square)

AED4.3MILLION(Priceof a villa in Millennium Square)

MILLENNIUM SQUARE:

G & COS LATEST OFFERING


p

p

y


25/68


propertyonline.a

e

MARKET

How is the market expected to fare this year? By Nicole Walter/freelance writer

ECONOMIC GROWTH ANDSUPPLY TOBALANCE THE MARKET

AS 2015 PRICE PACE SLOWS


26/68

MARKET

30,000

30%

5%

FORECASTEDSUPPLY IN

VACANCY RATEIN OVERALL

DUBAI OFFICEMARKET

DUBAISECONOMICGROWTH

2015


p

p

y

The second half of 2014 hintedat how this year would startby putting the breaks on the2013 frenzy as the market sta-

bilizes, preparing for future growth.Setting the tone, Craig Plumb, Headof Research at JLL MENA, predicts arelatively subdued Dubai residentialmarket, trading in a narrow band ofprices of less than 10% up in some,down in other locations, for this year.This stability is to be welcomed as itwill allow the city to regain some of

its competitiveness, which it has lostas a result of unsustainable growth inprices over the past two years. Dubaiwill continue to attract businesses andresidents looking to benefit from itsstrategic location within the region,

says. However, most units wont beavailable for rent before the end of2016, and despite ongoing price sta-bilization, John alerts prospective ten-ants shouldnt hope to bag a bargainin their preferred location or building,either. Rent increases will continuefor very specific developments andproducts in line with demand andare contingent on the type of own-ership structure. While 2016 may feellike an interminable wait for manyfrustrated tenants, it will also providemuch-needed stock in the run-up toExpo 2020, he adds, remarking that afinal tally of the required units for thisgame-changing six-month festival isas yet unknown.However, the spec-tre of rampant vacancy levels due toa surfeit of oversupply post-Expo isnothing more than an urban myth,he remarks.

Nicholas Maclean, Managing Direc-tor at CBRE Middle East would concur,pointing out that it was the num-bers of new Fortune 500 companiessetting up in Dubai already today,despite the Expo, which were driv-ing the market. We have a greaterlevel of interest to expand operations,bringing new people, which can putdown roots here, than we have everhad in our history, he adds. If we

are growing our population to threemillion plus here, then actually thehousing stock is not enough, he says,conceding that a large proportionof those may need affordable hous-ing. Nicholas, however, highlightedthe strategic vision to transform the

he remarks, adding that it appearedthe Abu Dhabi market had moregrowth left for prices to increasemore quickly this year.

John Stevens, Managing Direc-tor at Asteco Property Manage-ment, points out that the fore-casted supply of around 30,000new homes, which matches thefirms own internal research count-ing a required 24,000 apartmentsand 6,000 to 9,000 villas, would

meet demand.

These homes will come onlinewithin the next two years, givingDubai residents a breather when itcomes to choice and, hopefully, areturn to relative affordability, he

Downtown , Dubai

Sheikh Zayed road , Dubai


27/68

other tier of the market - managed officeportfolios at single-owned buildings are full.It isnt the location, or the building qualitybut the ownership structure, which putscompanies off. However, Matthew pointsout that in some areas such as in JLT, wherea lot of SMEs take start-up offices, stratastill works.

Vacancy rates at secondary offices haveactually gradually reduced, and outper-formed, at a 12% y-o-y increase, primeoffices but largely due to the fact that theywere coming from a very low base. Primerents are touching the AED2,000 a squaremetre mark, and increased by 6% y-o-y.Matthew expects this trend to continue.

There doesnt seem to be a relief in sighteither, as developers are forced to completewhat they had originally sold to a multi-tude of investors. For now that situation is

not going to improve, a lot more is comingthrough in Business Bay for example. Someare to do well there, but were talking abouttwo single-ownership properties out ofmany, says Matthew.

He says some developers solved theconundrum by buying back offices sold asa fractional product from the owners andmade it attractive again for occupiers, butthey are far and few in between. The prob-lem is to get original investors to see a singleviewpoint, some just added to them to their

portfolio, as in residential, and are not inter-ested in even selling or leasing. So, thereare many products in this market whichare never going to see high occupation,he explains.

No one in their right mind woulddevelop a strata office today as the mar-ket is not there, and what is being devel-oped that corporations are looking for,large floor plates, is relatively piecemeal,Matthew adds.

The reason being, although the market is

exceptionally strong for that type of prod-uct, is the potential risk of holding the assetfor many years to gets its value, and thereturns and wider vacancy rates have alsobeen off-putting. Yet, the developers whopushed that button are benefitting formthe fact that there is little competition in themarket, Matthew adds. The situation meansthat the 80 live requirements for large officesCBRE has on their books, including from theUS and Western Europe, either wanting tobring their staff under one roof or new toDubai, have to improvise. One firm requires

100,000 square feet and it will depend on

nature of the existing economy to increasethe proportion of those that can havean impact on the economy, rather than-

just some spending power, which wouldincrease demand for the high-end reales-tate being created.

Demand for office units

CBRE has noted current interest for officescoming from the oil and gas, pharmaceu-tical, technology and financial sectors, aswell as retailers supporting their expan-sion with regional HQs. Law firms arevery active right now and their expansionis always a good indication of the market.APAC FDI companies are also relocatingcomponents of their business to Dubai

to target Africa from here, adds Nicho-las. These developments bode well forresidential but obviously for the officemarket, which continues to experiencevacancy rates of an average of 38% forDubai overall, thanks to the continuingoverhang of boom-time strata buildingsnearing completion.

Matthew Green, Head of Research &Consultancy at CBRE Middle East, says theoffice stock has doubled since 2008 andwhilst strata fractional ownership space

isnt easy to fill, the opposite is true for the

RENT INCREASES WILL CONTINUEFOR VERY SPECIFIC DEVELOP-

MENTS AND PRODUCTS IN LINEWITH DEMAND AND ARE CONTIN-

GENT ON THE TYPE OF OWNER-SHIP STRUCTURE. WHILE 2016 MAYFEEL LIKE AN INTERMINABLE WAIT

FOR MANY FRUSTRATED TENANTS,IT WILL ALSO PROVIDE MUCH-

NEEDED STOCK IN THE RUN-UPTO EXPO 2020.JOHN STEVENS,MANAGING DIRECTOR AT ASTECO

PROPERTY MANAGEMENT

TRADE IN YOUR OLD

PROPERTY MANAGER NOW

Is your property management

services breaking down?

Upgrade to Al Raea Real Estat

and we will pay half of the

termination cost to your old

manager so you can be release

from your contract

(conditions apply)

If You Have Ever Experienced

Poor Communication

Bad Services

No Initiative

Bad Follow-up on Maintenance

Property Damage

No Support or expertise to take

care of your property

Then you need to assure is your

property is in the hands of Authoriz

Property Manager ?

TRADE IN TO AL RAEA REAL ESTAT

PROPERTY MANAGER WHERE

YOU WILL EXPERIENCE:

Proactive communication

100% service Satisfaction

After Hours and Weekend viewin

Competitive management fee

We handle the Headaches and

just send you the money

Contact us for free consultation as aopportunity to meet with our team

of experienced property managers

Call: 04 3623856050-5076117


EXPECT THE BEST

Since 19

BRN 31719 | ORN 2293


28/68

MARKET


p

p

y

their timing if we can find contin-uous floors, it almost doesnt existnow. The new supply that is comingin DIFC, or developed by Emaar, istwo years away, which will have aneffect on the rental values over thenext couple of years, he says.

Residential units

While it will be the office, hospitalityand industrial sectors to perform bestin the UAE this year, according to arecent JLL MENA Investor SentimentSurvey, respondents are thinking oftaking their money into the residen-tial sector in KSA, as well as lookingat opportunities back home in theUK and US. Investors are recognis-ing that there is relatively little furtherupside in the residential market in theUAE, says Craig. However, the UAEsemergence as a global business hub

and its mega infrastructure projectswill sustain the Emirates maturingresidential real estate market, saysFaisal Durrani, International Research& Business Development Manager atCluttons.

They are all expected to fuel thedevelopment of the real estate mar-ket in 2015 and beyond. However,we expect growth to take on a muchmore muted tone over the next threeto six months as the market adjusts

to the evolving conditions, he adds.

may spread into the last quarter of2015 unless a good number of newinvestors pour in, or end user/occu-piers decide to buy the propertiesfor which they pay a good rate ofrent, he says, while he recommends

watching Abu Dhabi closely. Con-

sidering the size of the market andupcoming supply, the slowdown

may last longer than Dubai in 2015.

Most likely its a year to start con-

sidering significant levels of invest-

ment with lowering price levels,

he says.

Matthew is content that the hyper-

inflation, which had dramatically

increased the cost of living for every-

one is subsiding. We are still seeing

transactions but at a lower rate. As

the market is slowly maturing, wecan look forward to a little more sta-

bility. We dont expect to see a repeat

of this years performance in 2015

but far more marginal growth levels,

he says, adding that the announced

large master-planned projects are

signalling supply isnt about to slow

down. Buyers to snap up this supply

will be around. Nicholas says the buy-

ers make up hasnt changed much

over the years, as Dubai is still seen as

a safe haven and a good bet to invest

in the GCC, even if it goes throughblips like all markets do. There is still

quite a large proportion of people,

who buy apartments just for capital

growth and we dont see that men-

tality changing. The market is rela-

tively well insulated by the 4.5% UAE

(5% Dubai) economic growth with

people coming to stay. I dont see

anyones rents falling of the cliff right

now, he remarks.

Matthew reckons that more could

be done, if authorities wanted toregulate the off-plan market further,

to reduce the risk of boom and bust

cycles, although he forecasts a period

of stability. Obviously, it is a market,

which attracts speculative invest-

ment from cash buyers, these factors

really increase the volatility, and they

could tighten it up more to improve

that. On the flipside they dont want

to put off investors, Dubai obviously

functions because of these mecha-

nisms as well, he concludes.

THE UAES EMERGENCE AS A GLOBALBUSINESS HUB AND ITS MEGA

INFRASTRUCTURE PROJECTS WILLSUSTAIN THE EMIRATES MATURING

RESIDENTIAL REAL ESTATE MARKET.THEY ARE ALL EXPECTED TO FUEL THEDEVELOPMENT OF THE REAL ESTATE

MARKET IN 2015 AND BEYOND.HOWEVER, WE EXPECT GROWTH TOTAKE ON A MUCH MORE MUTED

TONE OVER THE NEXT THREE TO SIXMONTHS AS THE MARKET ADJUSTS TO

THE EVOLVING CONDITIONS. FAISAL

DURRANI, INTERNATIONAL RESEARCH& BUSINESS DEVELOPMENT MANAGER,

CLUTTONS.

Ahmet Kayhan, Co-Founder & CEOof REIDIN, would concur expectingboth, Dubai and Abu Dhabi, mar-kets to be slower this year than last.Dubais flattening and correction

Green Community , Dubai


29/68

+971 4 3882220aquaproperties.com

ERA ORN # 303 Suite 1601, Boulevard Plaza Tower 1, Burj Khalifa District, Dubai facebook.com/aquaproperties

Register your interest in our upcoming projects [email protected]


30/68

MARKET

Imagine chirping birds and greenlandscapes juxtaposed with tenniscourts, children playing, world-class shopping and easy access to

bustling business districts and whatyou get is Discovery Gardens, a trea-sured haven for residents. Launchedby Nakheel in 2004, Discovery Gar-dens is a themed residential commu-nity inspired by nature, providing anexceptional family-oriented environ-

ment to its inhabitants.

Since its handover in 2008, themodern community of 291 buildingscomprising over 26,000 apartmentshas been a preferred choice for fami-lies. With my office located in Dubai,the daily commute from Sharjah toDubai had become a grind for me.I had read a lot about this projectof Nakheel and a few friends whohad moved here had good things tosay about it'', says Venkatsubrama-

nian. Economically also it made senseas the rent was reasonable, includingcooling charges and all other main-tenance handled by the landlord. Butwhat clinched the deal was the drivethrough the Discovery community.The chirping of the birds, the layout,the greenery, the kids play areas, the

peace and quiet, all within easy reachof Sheikh Zayed Road had me andmy wife convinced that this is wherewe wanted to live and see our kids togrow up. So when prices fell due tothe property market crash in 2009,we took advantage of the dip andmoved, says Venkatsubramanian,a long-time resident of DiscoveryGardens. His wife, Priya adds, Eventhough the place was still develop-ing at the time, when we looked atother options like Bur Dubai, Ghusaisor Deira, Discovery was great val-ue-for money for the holistic lifestyle itoffered. For me, good neighborhoodschools like Winchester and DPS aswell as the Jebel Ali hospital within

THE BEST OF ALL WORLDS

the community mattered a lot. Thecosmopolitan communitys proximity toDubais major business and economiccenters including Dubai Internet City

& Dubai Media City makes it an idealcombination of countryside living withincity limits.

The strategic location close to Ibn bat-tuta, the worlds largest themed shoppingmall, easy access to the Ibn and NakheelHarbor Metro stations and a prolifer-ation of amenities has also upped thecommunitys popularity quotient overthe years. Priya elaborates, The place isvery self-sufficient now. Other than IbnBattuta and Geant, we now have ampleconveniences from home-delivering

supermarkets to nurseries, pharmacies,gymnasiums, restaurants and salons.Training and activity centers have alsocome up within Discovery, with bus ser-vices provided by institutes in JumeirahLakes Towers. And the well-maintainedlandscaped gardens, courtyards, courtsfor tennis, basketball and volleyball,community swimming pools completewith lifeguards, kids play areas and theextensive parking make this place idealfor families. But the increased popular-

ity has meant a greater inflow of fam-ilies and worsening traffic conditions.

Although an additional entry/exit pointhas alleviated traffic woes to someextent, residents feel much more needsto be done given the rapidly increas-ing load. Over that last five years, theyhave added just one exit. While this hashelped a little bit, we need a lot more,as the number of residents and cars hasalso gone up considerably. Also, opening

U-turns and approach roads towards theschools area and the new Ibn BattutaGate exit will reduce the strain on themain arterial road during peak hours,feels Venkatsubramanian. Other thanthe traffic, the foul odor emanating fromtheneighborhood sewage treatment

plant in Gardens is a cause for discom-fort. Despite these glitches, residents arequick to point out that the pros far out-weigh the cons.

We feel blessed to be living here.

It was the best decision for usadds Priya. Residents, however, feelminor improvements could go a longway in further positioning the commu-nity as a classy district. These includeincreased overall cleanliness and betterlighting for the community areas. Priyaexplains, Its a family oriented placewith benches for relaxation and playareas for kids. It would be nice if these

places were brighter and better lit. Othersuggestions include a community hallfor the use of residents, as well as com-munity events that will allow residentsto bond and thrive, and add vibrancyand value to the quality of life of Dis-covery inhabitants. With recent rampedup safety measures, including physicalsecurity guards, surveillance camerasand access card control for all buildings,as well as enhanced street lighting, illu-minated direction boards and a betterroad network, Discovery Gardens willcontinue to maintain its attraction as acommunity offering reasonably pricedsophisticated living.

Discovery Gardens, a treasured haven for residents By Neha Kaul/freelance writer

The Venkatsubramanian family


p

p

y


31/68

REGISTER FOR

NEW LAUNCHES

+971 52 88 66 288T: 04 395 75 45

F: 04 395 75 46

www.candourproperty.com

[email protected]

MARKET

ROBUST COMMERCE

With a captive resident

population of nearly60,000, Discovery Gardens

presents ample com-mercial opportunities for shops andlocal market places. Speaking to theowner of Aneeq Fashions, a boutiquestore retailing in formal ethnic Indianwear as well as smart casual westernoutfits, we understand what makesthe commerce district in Discovery

Gardens tick.

I have been living in Discovery since2009, and I loved our life here. But Icould feel the gap for an outlet withethnic Indian wear to cater to the verylarge Asian and Indian crowd. Some-thing small and simple, where peoplecould come in quickly, shop and leave.Not like going to a mall. So in 2012,seeing the growing opportunity for thesuccess of such a business, we launchedour store. And till date we are the only

stand-alone shop of its kind, cateringnot only to the Discovery crowd, butalso Gardens, Marina and JLT. Andbusiness has been great, says Moham-med Arif, owner, Aneeq Fashions. Withthe diversifying inhabitant base of thecommunity, and sensing the lack ofsuch services in Discovery, the storeadded tailoring for Indian outfits as wellas alteration services for mens cloth-ing, targeting another recurrent needof residents.

The cost-effective and reason-

able rent base of the community hasattracted the middle to high-incomebracket, which underscores the popu-larity of neighborhood stores. Arif sup-

ports this view by adding, The rentshere are very reasonable for the size ofapartments and the quality of life that

you get. So it attracts a lot of middle tohigh-income crowd. These are the peo-

ple who prefer to shop in independentstores rather than malls and are notbrand conscious or specific, which is

why we saw roaring business over thelast few years as rents remained at thestable low end. We even expanded ourstore this year to cater for the heavyfestival season shopping and the

growing crowd.

Other than restaurants, which facetough competition from the malls andother independent outlets, most othercommercial establishments in Discov-ery benefit from the neighborhoodmarket concept, preferred by residents.For many, like Aneeq, competition liesas far away as Karama, thus assuringa captive audience. Our competitorsare in Karama and Bur Dubai. Andmany husbands actually thank me asthem and their families prefer shop-

ping locally rather than commutingall the way. They can save on the Salikfee, and the wives can come in anytimeto shop for themselves, for the kids andfor the husbands. Plus there is nothingsimilar to us in and around this wholearea, in terms of the quality of what weoffer, and the price we offer it at. Andwe have maintained it, because it fitsin well with the profile of the people liv-ing here and in neighboring districts,affirms Arif. On the downside, a recent

spike in rents mid last year has seen a bigoutflow of the middle-income residents,nearly 50% as per Arif, which he feels hasimpacted their business considerably.With a higher income group and differ-ent nationality profiles coming in, thestore has adapted its styling to suit theirtaste as well. But business has not recov-ered as desired. These people preferhigh-end stores and lifestyle shopping inmalls. Its difficult to attract them to our

shops, adds Arif.

The well maintained streets, extensiveparking, recently ramped-up lighting aswell as the general air of vibrancy andsecurity for families has continued tokeep Discovery Gardens at the top of thelist of preferred communities. And thishas aided the footfall in shops locatedin the local markets. Enhanced popu-larity has meant a constantly growingcrowd, thereby making commerce amore viable and attractive option. For

shop-owners, the enhanced street light-ing, improved access, metro proximity,as well as the addition of illuminateddirection signboards have made nav-igation simpler, eased operations andimpacted sales positively. Discovery isvery popular as a place to stay. So thecrowd never decreases, only grows. Plusaccess from other adjacent areas like

JLT, Marina has become easier and hasalso improved business. Now with the AlFurjan villas, and more community proj-ects around the area being handed over,the future looks even brighter, adds

Arif happily.

Discovery residents prefer neighborhood markets

Mohammed Arif, Owner, Aneeq Fashions


propertyonline.a

e


32/68

MARKET


p

p

y

When did you come to Dubai? In 2012Previous profession: Internal Audit ManagerFirst sale in Dubai (villa, APARTMENT or commercial? Which year? And value of the trans-action?Marina Wharf Apartment, Selling Price at AED 1.9M, in year 2012What you like about your profession? I have learnt that there is no substitute for hard work andclient satisfaction. As an agent, I focus my energies on being professional and client orientated; thesetraits are continuously valuable in an ever-competitive market such as Dubai's.Hobbies: Reading, cooking and swimming

Favourite hangouts: Malls, Madinat Jumeirah and beaches

Why you love Dubai? The city is fast growing and there are lots opportunities available for eachand every individual

When did you come to Dubai? First time I came to Dubai in August 2013Previous profession: My previous profession was translator of four languages in one of the mostinfluential companies in my country that deals in several fields on an international level.First sale in Dubai (villa, APARTMENT or commercial? Which year? And value of the transac-

tion?My first deal was an apartment in Sports City which I sold for AED1.1 million in March 2014.

What you like about your profession? I love my profession for its endless opportunities. On a dailybasis, I meet different people with different mind setup and preferences that give me the best experi-ence regarding knowledge of the business and communication with the people. With each meetingmore doors open, which creates more chances for business and better future.Hobbies: My hobbies are travelling and collecting specialties from different countries.

Why you love Dubai? I love Dubai because its a leading city; its the best place I have ever been to.

Tanya Kadysheva

Russian, Taktical Realty GroupSale Agent, RERA: 27207

Oxana VictorRepublic of MoldovaGold Coast Real EstateSales Executive, RERA: 43454


33/68


When did you come to Dubai? Moved to Dubai in August 2008Previous profession: I have always been an Estate Agent. First in Windsor (in Berkshire) from the age of17 (I am now 34)First sale in Dubai (villa, APARTMENT or commercial? Which year? And value of the transaction?

The Residences, Downtown. One-bedroom apartment sold in September 2008 at AED925,000

What you like about your profession? Having been in real estate for over 17 years, it is safe to say thisis the only profession for me. I have been selling property in The Downtown Burj Khalifa area for the pastsix years and I have met thousands of buyers, sellers, real estate agents, developers, celebrities- and evenroyalty from every corner of the earth! The little added bonus to my job is getting to do viewings in one ofthe most famous buildings in the world, not to mention the tallest Burj Khalifa

Hobbies: Playing football three times a week, walking my dog on the beach, running.Why you love Dubai? I love Dubai because of the amazing ambition. I couldnt believe this countrycould do anymore but having just been to Cityscape, I was wrong! There are so many amazing up andcoming things and this is only the beginning. I planned to come here for just two years, but I am now

proud to call Dubai my permanent home.

When did you come to Dubai?August 2008

Previous profession: I was only a student before coming to DubaiFirst sale in Dubai (villa, APARTMENT or commercial? Which year? And value of the

transaction? It was an apartment worth AED3.8 million in 2008.

What you like about your profession?I am able to interact and deal with VIP's and big business persons. Most importantly, I get tolearn a lot from these successful people.Hobbies: I love playing football during my leisure time.

Why you love Dubai?

Dubai is a very unique and cosmopolitan city, it is also a fast-growing city and a pretty safeplace to live and raise children. Dubai is tax-free as well.

Alex Prestedge

British, Prestige Real Estate,Senior Property Consultant,RERA:11309

Navid HamediIranian, Kensington FinestProperties International, SeniorProperty Consultant, BRN 29916


34/68


p

p

y

MARKET

Ajmans Lifestyle Development Al Zorahs first phase is expected to be ready by early 2016. By Nicole Walter/freelance writer

CREATINGPLACES FOR LIFE

On the drawing boardfor quite a few years, AlZorahs developers a JVbetween Solidere and

the Ajman government have beenquietly working on the projectsinfrastructure and started construc-tion of its first phase to completeby early 2016. Lebanese developerSolidere, known to create places

for life, master-planned this huge5.4 million square metres freeholdand free-zone development, whichcould reach an investment valueof AED60 billion, taking advan-tage of the unique beauty spot itoccupies along the coast of Ajman,with pristine beaches, dunes andmangroves where 58 species ofbirds live, including the attractivepink flamingo.

Future residents paying a visitto the site would already spot the

advanced greenery, courtesy of the6,000 square metres nursery on-site,at the 18-hole golf course by NicklausDesign and managed by Swiss TroonGolf, as well as glistening lake waters.We already have nine holes readyand the rest in June. Once the grassmatures in fall 2015 we expect it tobe playable, when the villas shouldbe ready for handover as well, ImadDana, CEO of Al Zorah DevelopmentCompany, says. The 42 four-to-sixbedroom golf villas, offering plenty


35/68

of space from 4,800 to 6,000 squarefeet were launched for sale at this yearsCityscape starting at AED3.8 million.Coming in a contemporary and airydesign, each villa sports has its ownswimming pool. Although pretty mucha traffic free area, each villa has two-parking spots and visitors will also finddedicated spaces.

What to expect?

Residents will enjoy unobstructedviews of the golf course and mangroveforest, each taking up 1 million squaremetres, in close proximity to the lake,Imad points out. The distance fromthe entrance The Gateway of thedevelopment at Sheikh MohammedBin Zayed Road down to the beach isaround four kilometres, an enjoyabletrip by golf cart on a dedicated trail.Buyers automatically become golf clubcommunity members, which sharesa site with a wellness centre to bebuilt and operated by a Turkish devel-oper, who plans to offer detoxificationprogrammes and the likes. The villasfall into the Golf Course district of AlZorah, an area to enjoy low density,even when the second phase com-pletes between 2017 and 2020, addinga mix of 60 villas and townhouses, andnine apartment buildings no higherthan seven storeys.Were keeping theflexibility to build more larger or smallervillas depending onwhat people want,although one idea is to develop luxuri-ous villas in their own closed commu-nity, says Imad.

The developer is making sure thatresidents moving in and the leisurelylifestyle promised will run as good as intandem. The infrastructure, roads andlandscaping will be ready. Four mari-

nas have already been created at TheCreek Side district and one of them willbe furnished with pontoons and restau-rants along the quay, which can accom-modate up to 50 boats. In future, as thesecond phase, this area will become afully-fledged high-end residential apart-ment, villa and hotel quarter affordingviews of the mangroves. Two hotelresorts, the Oberoi Al Zorah and Lux* AlZorah are already under construction inthe The Beachfront district. The latterto be managed by the boutique Mau-

ritian operator Lux* Resorts & Hotels,

WE ALREADY HAVE NINE HOLESREADY AND THE REST IN JUNE.ONCE THE GRASS MATURES INFALL 2015 WE EXPECT IT TO BEPLAYABLE, WHEN THE VILLAS

SHOULD BE READY FOR HANDOVERAS WELL. IMAD DANA, CEO, AL

ZORAH DEVELOPMENT COMPANY.


36/68


p

p

y

MARKET

will feature only 110 keys, with thesmallest room measuring 90 square

metres. The resort is really luxurious

with a lot of space 100,000 square

metres for the 110 rooms, and takes

up 300 metres of our 1.6 kilometres

beachfront, says Imad.

This will be Lux* first resort in

the Middle East and we chose them

because we wanted an operator

specialized in resorts, as opposed to

a business hotel. We want guests to

feel like they are in Mauritius with-

out having to fly all the way there,

he adds.

The Oberoi Al Zorah will be bigger

with 190 rooms. Whereas the Lux

is more vibrant and family oriented,

with more outlets, five restaurantsand a beach club with lounge andmusic, the Oberoi is known for quietluxury, the client will enjoy a vastspace, spa and restaurants but incalm surroundings, Imad explains.

The hotels complete the pictureof the first phase of the develop-ment. Everything in phase I is under

construction at a cost of AED2 bil-


37/68

MARKET


propertyonline.a

e

RESIDENTS WILL ENJOY UNOB-STRUCTED VIEWS OF THE GOLF

COURSE AND MANGROVE FOREST,EACH TAKING UP ONE MILLION

SQUARE METRES, IN CLOSE PROX-IMITY TO THE LAKE. IMAD DANA

SIZE OFAL ZORAH

DEVELOPMENT

STARTINGPRICE OF

GOLF VILLAS

THE NUMBER OFROOMS

AT OBEROI AL ZORAH)

5.4

3.9

190

MILLIONSQ. FT.

MILLION

AED

lion, and we expect it to be openby end of 2015, beginning 2016,says Imad.

Second phase

The design and construction of thesecond phase components are run-

ning kind of alongside the first phase,

says Imad. Those include a boutiqueresort with on-the-water villas nearthe golf course, as well as a beach cluband 300 metres long boardwalk withshops and restaurants and three resi-dential apartment buildings servicedby the already appointed hotel oper-ators, coming in distinct contempo-rary designs at The Beachfront. The

residences could even complete by

beginning 2017 and put into thehotel rental pool, we willstart con-struction and launch sales early nextyear, he says, adding The Beach-front has space for another fourhotels one may become a 500-roomhotel with water-park. Much of thedevelopment of the second phaseis in the hands of sub-developers.

Weve already handed over the plotsto our initial investors and expectthem to start building once they seethe success of the first phase, saysImad, adding that judging by theinterest shown in Al Zorah the sec-ond phase could move quickly. Itis a nice community with no traffic.We are attracting local interest fromAjman and other emirates, people


38/68

MARKET


p

p

y

who have businesses and would liketo live this lifestyle and can commuteeven to Dubai, thanks to the upgradeof Emirates Road and National Paints

bridge, it only takes 25 minutes,he explains.

However, he added that the proj-ect would be grown organically,depending on the excitement itwould generate and marketcon-ditions, the second phase may ormay not be ready by 2020. It has to

come naturally, we want end-usersto come and enjoy a refined lifestyleand outdoor activities, such as jog-ging and cycling, as of course the

beach. We reserved two-thirds ofour master plan for public spaces,Imad says.

We would also like to make thedevelopment affordable to a bigsegment of the market, keeping inmind near the beach we will go nohigher than four floors yet have sea

views, he adds. The Peninsula, asthe spine of the development willbe the last to be developed, com-plete with a pedestrian retail and

leisure souk-style strip. It could alsoinclude Ajmans first exhibition cen-

tre, according to the developer. The

Peninsula is really the third phase,

we have to wait for a critical mass

in the development to plan effec-

tively, we may even include offices,

Imad concludes.

IT HAS TO COME NATURALLY,WE WANT END-USERS TO COME

AND ENJOY A REFINED LIFE-STYLE AND OUTDOOR ACTIV-ITIES, SUCH AS JOGGING ANDCYCLING, AS OF COURSE THEBEACH. WE RESERVED TWO-

THIRDS OF OUR MASTER PLANFOR PUBLIC SPACES,

IMAD DANA


39/68

.


40/68


41/68

HOSPITALITY


propertyonline.a

e

According to a recent CBRE report, Dubai today already houses 64,000 rooms, over double thanthat in 2005, with 3,500 keys alone having completed last year. By Nicole Walter/freelance writer

NEW HOTELS COMING ON LINETOSOFTEN PERFORMANCE


42/68

REGISTER FOR

NEW LAUNCHES

+971 52 88 66 288T: 04 395 75 45

F: 04 395 75 46

www.candourproperty.com

[email protected]

HOSPITALITY


p

p

y

Dubais hospitality sector isas strong as ever, althoughexperts have started todetect signs of performance

slightly softening in some areas dueto additions to the market since lastsummer and expect this trend tocontinue. According to a recent CBREreport, Dubai today already houses64,000 rooms, over double than that

in 2005, with 3,500 keys alone havingcompleted last year. We have beenachieving 10% growth y-o-y since2011. Supply has been growing ata fantastic rate, and whilst this yearmay not have reached the peak oflast year, were still performing ata rate which is exceptionally highcompared to the majority of otherinternational markets, remarks Mat-thew Green, Head of Research atCBRE Middle East. The consultancyfirm predicts close to 27,000 new

hotel rooms, including apartments,to appear until 2017, most of which

will come on-line this year at justover 10,000, of which rooms slightlydominate at around 5,400 keys.Hotel rooms then clearly take overthe landscape versus apartments, in2016 and 2017 in terms of new sup-

ply. JLL Hotels & Hospitality GroupsHotel Intelligence Dubai 2014 sur-vey meanwhile counts around 20properties, around 4,600 rooms, dueto open this year, although post-poning hotel opening date isntunusual. Over the year to August,the Dubai market has recordedoccupancy rates of 78 percent, rel-atively flat compared to 2013, says

Craig Plumb, Head of Research atJLL MENA, remarking that last yearwas Abu Dhabis year, where occu-pancies rose from 64 percent to 71percent (2013-2014). For the firsttime ever, hotel occupancies in AbuDhabi exceeded those in Dubai inJuly 2014, driven by attractive roomrates with the daily average rate(ADR) over the year to August atUS$133, although the Dubai mar-ket continues to experience muchhigher levels of ADR at US$238, and

therefore enjoys a higher revenueper room (RevPAR), he adds.

Visitor numbers of close to sixmillion, an increase of 27% from thefirst half of 2013 to the second half of2014, saw guest nights increasing byaround 15% to 22.6 million, accord-ing to CBRE, thus creating demandfor new hotel openings. The firmmeasured the performance of upperscale (4*) properties, which managedto increase ADR by around 20% to

AED867over 2012 and 2013, and rais-

GIVEN THE AMOUNT OF SUPPLYCOMING ONLINE IN THE NEXT

COUPLE OF YEARS WE HAVE TOEXPECT THAT SOME DEFLATION-ARY PRESSURES WILL BE FELT ON

ADRS, BUT WITH OCCUPANCYRATES STAYING SO HIGH, THATS

NOT GOING TO HAVE A HUGEIMPACT ON THE HOTELS, BUT

RATHER MEANS JUST A BIT OF ANORMALIZATION. MATTHEWGREEN, HEAD OF RESEARCH,

CBRE MIDDLE EAST

Business Bay , Dubai


43/68

propertyonline.a

e

SPLENDOUR HOMESReal Estate Brokers

Office 501, Barsha Business Square,Al Barsha 1, PO Box: 392590,Dubai, UAE.

: +971 4 3994 603: www.splendourhomes.ae

or more information please contact:

Sana056-4540231

Saif056-4540230

ORN 15285

Parvez55-3688052

SPLENDOUR HOMESReal Estate Brokers

BUY | SELL |RENT

+971 4 399 [email protected]

List your properties with us for best results

Kamran055-1060746

Reema056-4540234

Ronabelle050-6843097

Kerrouchi56-4540233

Jun Song056-4540232


44/68


45/68

HOSPITALITY


propertyonline.a

e

he adds. A recent market study by Viability high-lighted that new hotels in town have alreadybeen influencing market performance in certainareas since last summer. For example, the JebelAli area, which traditionally benefitted fromfrustrated demand from hotels along the cen-tral stretch of SZR didnt get these clients lastsummer, which led to a softening of room rates.Hoteliers are wondering if they have to startseeing Jebel Ali and Al Barsha as self-containedareas. Indeed, they can look forward to Jebel Aliin ten years time becoming a multi-modal hub,Guy says, adding that price competition on ThePalm was also evident due to new propertiesopening there. You have to be in spots likeDowntown Burj Khalifa to charge good roomrates, the further out you go out of town youhave to be flexible. However, we need hotelsin secondary locations, they may have to buy abit of occupancy for the next couple of years bysoftening their rates, but this could be good for

Dubais future as there is always a danger thatit could price itself out of the regional tourismmarket, he remarks.

More supply

Matthew highlights that a lot of the new supplyemerging in Downtown Burj Khalifa, BusinessBay, DIFC and Sheikh Zayed Road, close to 8,000keys, is focused on the corporate segment.Although he reckons that in the future more lei-sure focused supply would be coming through.

The market is still dominated by five-star prod-uct and I dont think that is likely to change,he says, despite the government pushing andseeing an uptake in the mid-scale segment. Asa tourism destination, Dubai is always going toremain a luxury destination, he adds.

Among the list of new properties envis-aged to open this year, are some brands newto Dubai, including the Hard Rock Hotel inthe Dubai Marina - Marina 101, Rosewood,Starwoods St. Regis in October and the WHotel (Jan 2016) in Al Habtoor City alongside

a second Westin for the Emirate, the PalazzoVersace, a Langham Hotel (2016), as well asDamacs Paramount. We have a lot of newnames coming to the Emirate of Dubai, suchas in the five-star segment, the Viceroy on PalmJumeirah in 2016 and the Four Seasons JumeirahBeach has just opened, says Matthew. Nextyear alone we have 10,000 rooms, and hotelapartments coming through, but a lot of that isfrom the likes of Damac, and at the moment and

it remains to be seen how they actually stack up

as a hotel apartment product, but this is what

they have been launched and will be utilised as,

he concludes.

Luxury Hotel, Dubai


46/68

Column

Jitheesh ThilakBA, LLB (Hons). LLM (Int. Economic Law)

Solicitor (England & Wales),Advocate (Supreme Court of India)

e: [email protected]

The increase in the number of hoteloperators and expansion of globalhotel brands into Middle East has

placed pressure on operators tooffer more competitive terms to owners.

At the same time, owners have becomemore knowledgeable and savvy whennegotiating management contract termsas the increased sophistication of hotelinvestors has led to a better understandingof hotel operations. The combined effecthas been that the balance of power haslargely shifted more in favour of the ownerwhen contracting with many operators.Owners can now negotiate terms whichincrease their control, flexibility and leverage

in the business and finances of operatingdecisions, while operators face moreperformance tests and incentives. Ownersare increasingly thinking beyond profitand loss and have become more involvedin key decisions, although there is still anobligation to limit this to key matters andnot to interfere with the day-to-day runningof the business. The maturing market hasgiven room to the birth of the new form ofmechanism called Manchise, which is still inits nascent stages inthe region.

MANCHISE AGREEMENTS

IN THE MIDDLE EAST

HOSPITALITY

If you are a hotel owner who wishes toshop around the best branding/manage-ment strategy for your hotel, following arethe triggering questions that would provide

you insights in choosing the most advanta-geous management/franchise/manchise model:

What type of owner are you? Independent,Private Equity, REIT?

Who can achieve the greatest profit fromthe hotel? How and Why?

Documents

Property-Times012015.pdf