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Property Times July 2015 eMagazine


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Dubai No.1 Realty News Magazine. Property Times Magazine Dubai. Read Property News Online. Dubai Real Estate News Magazine Online. Real Estate Market in Dubai

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Property Times July 2015 eMagazine

  1. 1. ///// Issue 32 - July 2015 Magazine Search Awards Go Greenand save money Pg18 Pg40 INTERNATIONAL TIMES: BUY TO LET IN UK Pg10 REIDIN Pg32 COMMUNITY TIMES: JLT VS JBR H12015REVIEW:
  4. 4. FROM THE EDITOR GETTINGBACKINACTION Dubai’srealestatemarket,sincethebeginning of this year, has been witnessing a slowdown primarily in the secondary sales market. While the off-plan market has continued to attract buyers and investors with a number of new developments offering attractive payment plans, real estate agencies focusing on the secondary market have been feeling the heat over the past few months. However, the general consensus in the market is the market will pick up post summer as in the previous years. Cityscape Global 2015, to be held from September 7, is also expected to bring in more excitement to the market. In this issue of Property Times, the cover story is on saving money by going green. Our contributorAndyvanSmeerdijktalkstoexperts andbringsyouveryusefultipstosaveenergyat home. We also have a number of informative articles this month including an upcoming development in one of the prominent areas in old Dubai: Deira. Wasl District, by Wasl Properties,issettochangethelandscapeofthe Deiraareawithitsuniquedesignandconcept. Binesh Panicker Editor-in-Chief & Co-Founder P.O. Box: 76460, Dubai, UAE MEDIA LAB PUBLISHERS LLC Office 135, B Block, Al Shafar Investment Building, Near 3rd Interchange Sheikh Zayed Road, Dubai, UAE, PO.Box: 235504, Tel: +971 4 33 86 724 Fax: +971 4 33 86 734 EDITORIAL ADVERTISEMENT SUBSCRIPTION Licensed by National Media Council OUR TEAM CONTRIBUTORS PRINTER DISTRIBUTOR PUBLISHER Nicole Walter Freelance Writer Jehan Nizar Freelance Writer AndyvanSmeerdijk FreelanceWriter P.O. Box: 485100, Dubai, UAE Itisablendofpastandpresentandisexpected to attract thousands of visitors and investors over the next few years. In the International Times section, Andy van Smeerdijk tells us why buy to rent is an attractive proposition in the UK, while Reshmi Raveendran brings you a wide variety of products in the Interior Times segment. I am sure you will enjoy reading this edition of Property Times. BINESH Panicker Editor-in-Chief & Co-Founder JATIN Deepchandani Business Head THINKAL Bhal Manager - Sales RESHMI Raveendran Editorial Coordinator NYSAM K Shahul Senior Graphic Designer TOSEEF Ali Tidiwala Accounts Executive KIRAN Reddy E-magazine support SRIKANTH Reddy E-magazine support MANAF CK Admin Executive MARY Grace Antonio Executive Assistant to Editor in Chief Corrigendum In the article "Cyprus: The Ultimate Mediterranean Destination" published in the May issue of Property Times, Elite Estates Real Estate Broker was wrongly mentioned as Elite Real Estate. The error is regretted. July 2015 Issue -32 /// 5
  5. 5. I WANT TO EXPAND MY INVESTMENT PORTFOLIO 8 - 10 SEPTEMBER 2015 Dubai World Trade Centre, UAERegister now for FREE entry +9714 336 5161 THE HOME OF REAL ESTATE INVESTMENT Cityscape Global 2015 is the largest and most influential real estate investment and development event for emerging markets globally. Bringing together investors, developers, government officials and real estate professionals, there is no better place to find investment opportunities and new business partners. Organised ByOfficial Lifestyle MagazineOfficial Architecture MagazineOfficial Business PublicationSupporter Property Registration Trustee Partner Project MarketingDistrict Operator SponsorGold SponsorFoundation Sponsors Official Magazine
  6. 6. 08 NEWS AND ANALYSIS: Ananta by Omkar Realtors 10 NEWS AND ANALYSIS: HI 2015: Dubai market by REIDIN 12 PROPERTY EXPERT: Ahid Sheikh, Dejavu Real Estate 14 MORTGAGE EXPERT: Feyisesan Ekundare, MortgageMe 16 LEGAL EXPERT: Jerry Parks, Taylor Wessing 24 MEMAAR: A Realty Show With a Difference 26 AN OFFERING FROM Damac and Paramount Cover Sotry: Tips to save energy Wasl District in Deira Community Times: JLT vs JBR International Times: Buy to let in UK18 22 32 40 28 The Sustainable City 30 Market update by Hamptons 34 Market: Canal Residence-Handover 36 INTERIOR TIMES: Ocean View Antiques 38 INTERIOR TIMES: Product Watch 42 Elite Estates Real Estate Broker 44 Exclusive Listings 50 Column by Ryan Blair, ERE Homes July 2015 Issue -32 /// 7
  7. 7. NEWS&ANALYSIS M umbai-based Omkar Realtors and Developers Pvt Ltd (, one of the leading premium housing brands, launched its most affordable luxury two-bedroom residential project `Ananta,’ recently. Located at Goregaon East, the project aims to address the rising demand of affordable luxury apartments in Mumbai. Terming it as the most affordable luxury project to roll out of Omkar’s housing inventory, Devang Varma, company Director said that residents would be treated to an enchanting canvas of scenic green view in the bustling metropolis with the Ananta offering. “In a scenario OMKARREALTORSLAUNCHES LOW-TICKETSIZEANANTAPROJECT INTHEINDIANCITYOFMUMBAI whereby luxury projects in Mumbai commands PLC for sea view and hill view is rare, Ananta’s USP is the limitless hill views and greenery at an affordable pricing,” he added. Located on the outer peripheral of the famed Film City, close to the Western Express Highway, Ananta enjoys excellent connectivity with key city location including the arterial Jogeshwari - Vikhroli Link Road (JVLR) connecting East to West. The location and its vicinity offers limitless places of excitement be it in film city, fantasy land, multiplexes, shopping malls or Chota Kashmir amongst others. It also has a range of Malls, theatres, and hospitals in close vicinity with more than 20 schools and colleges including Oberoi International, Ryan International, VIBGYOR High amongst others. Ananta, the affordable luxury residential project based on the latest and fastest construction technology, is priced from AED810,000 onwards with apartments in the size-range of 625 sq. ft. carpet to 753 sq. ft carpet area. The wide range of amenities includes a double height lobby; children play area, swimming pool, jogging track, gymnasium, landscaped garden, accu-therapy walkway and multi-gaming facility. In addition, the sheer value homes include invaluable specifications with zero compromise on all fixtures and amenities. On the delivery front, the company is also assuring guaranteed possession within 21 months from the date of launch. With an early possession date of March 2017, the Goregaon East micro market is all set to elevate its preferred residential tag with the Ananta offering. July 2015 Issue -32 /// 8
  8. 8. NEWS&ANALYSISL imitless a Dubai-based real estate developer announced today that it will pay AED2.07 billion to banks and trade creditors in a major development in its financial restructuring. Limitless will repay AED1.9 billion in bank debt, including an early payment of AED411 million, and a further AED176 million to trade creditors. This repayment will be 42% of the outstanding bank debt of AED4.45 billion. Hence, reflecting on the company’s ability to successfully execute its business by achieving sales, including the sale of a part of its land bank in Saudi Arabia for AED2.07 billion. While 90% of the repayment will be made to the banks and the 10% will be made to the trade creditors. Limitless is presently in negotiations with its banks to agree on new terms and conditions for the repayment of the remaining debt and requires the banks to agree to an extension of the repayment period to December 2018. With almost 90% of the banks agreeing to the revised terms, Limitless is confident that the remaining 10% of the banks will soon agree to the revised proposal to enable Limitless to successfully conclude on these negotiations. Limitless Chairman Ali Rashid Lootah said: “This is a very positive news for Limitless. We are honouring our commitment to creditors and outperforming the current restructuring plan with an early repayment, about six months ahead of time. “We thank the Government of Dubai, our lenders and trade creditors for their continuous trust and support, which has enabled us to achieve this milestone. We also strongly believe that the lenders showing more co-operation and flexibility in accepting the revised terms will pave the way for Limitless to continue to develop its assets and meet its commitments to investors”, concluded Ali. FINANCIAL RESTRUCTURING BY LIMITLESS July 2015 Issue -32 /// 9
  9. 9. Ahmet Kayhan, CEO, BusinessBay NEWS&ANALYSIS DUBAIRESIDENTIAL MARKET:H12015 REIDIN in association with Property Times takes a look at how the residential sector in Dubai fared in the first six months of this year. By Binesh Panicker Y ear 2014 didn’t end on a positive note for Dubai market with a dip in the number of transactions resulting in price correctionsacrossvariouscommunities. The slowdown in the market has been quite evident in the first half of this year, especially in the secondary market. In this edition of Property Times, REIDIN CEO Ahmet Kayhan, reviews the first six months of 2015. Please tell us about the price fluctuations in the residential sector. It has been a tough first Half for Dubai compared to the steady performance in the last four years. Highest drop was in and around Dubai Marina with -11% among the apartment segment and Jumeirah Village Circle with -14% among the villa segment. Having said that, we believe the market fundamentals are still strong as most of the drop is due to the steep rise of the prices between 2012 and 2013 and a profit realization of those premium prices, which is very normal. Please tell us about the upcoming supply and demand in this sector. We are not expecting a big influx of supply considering in average 60% of July 2015 Issue -32 /// 10
  10. 10. Source : REIDIN.comiswidelyusedbyrealestateagentsandinvestorsforreliable, well-researched information on the country’s real estate sector. REIDIN. com, founded in 2007, is a leading real estate information company focusing on UAE, Turkey and other emerging countries. REIDIN. com helps professionals and individuals easily access the real estate information they need to make more informed investment, purchase, sales,rent,mortgage,finance,developmentandmanagementdecisions. ‘Data & Research Team’ together with a global network of information partners endeavours to provide high-end analysis and research support to its clients. For a detailed update on Dubai and Abu Dhabi real estate markets, grab a copy of REIDIN Market Update published in association with Property Times. NEWS&ANALYSIS the announced projects are delivered on time in the last seven years in Dubai. Below60%supplyalreadycreatesagap between demand and supply where demand surpluses supply hence the reason why rents didn’t drop as much as sales prices. About 34,000 units have entered to the Dubai market in the last twoyearsandtotalnumberofexpected units for the next two years is around 72,000 from the projects that are under construction. Considering 60% supply realization rate, we can expect around 43,000unitstoentertothemarketinthe next two years. Which are the most preferred communities in 2015? Based on the transaction levels, supply and rental market dynamics Business Bay, Dubai Marina and International City respectively are the top three most preferred communities in Dubai. What can you conclude from observing the residential market for the last six months and what are your predictions? We expect the sales price stress will continue in the second half of the year but at a much slower momentum due to the fact that the rental market is still very strong demand-wise. PRICE CHANGE: DUBAI APARTMENTS 0% -2% -4% -6% -8% -10% -12% -14% Last 3 Months Last 6 Months -1% Dubai Marina -7% -7% -7% -7% -4% -8% -3% -8% -5% -6% -8% -8% Discovery Gardens The Greens JLT Downtown Sports City JVC Business Bay Dubai City Wide -3% -3% 0% -11% -7% 0% -2% -4% -6% -8% -10% -12% -14% PRICE CHANGE: DUBAI VILLAS JVC Palm Jumeirah Arabian Ranches Victory Heights Al Furjan The Springs & The Meadows Dubai City Wide -7% -7% -6% -5% -3% -3% -5% -5% 0% -6% -7% -8%-8% -14% Last 3 Months Last 6 Months DUBAI SUPPLY AND DEMAND EQUATION Incremental Population Demand (Number of Families Incremental Units Supply 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 Expected DUBAI REAL ESTATE TRANSACTIONS BY COMMUNITIES 14% 12% 10% 8% 6% 4% 2% 0% BusinessBay DubaiMarina InternationalCity JLT DubaiLand JVC SportsCity Downtown Greens&TheViews PalmJumeirah DiscoveryGardens Springs&Meadows TECOM-C IMPZ ArabianRanches Motorcity OtherAreas DUBAI RESIDENTIAL SUPPLY PRICE CHANGE: DUBAI APARTMENTS 0% -2% -4% -6% -8% -10% -12% -14% Last 3 Months Last 6 Months -1% Dubai Marina -7% -7% -7% -7% -4% -8% -3% -8% -5% -6% -8% -8% Discovery Gardens The Greens JLT Downtown Sports City JVC Business Bay Dubai City Wide -3% -3% 0% -11% -7% 0% -2% -4% -6% -8% -10% -12% -14% PRICE CHANGE: DUBAI VILLAS JVC Palm Jumeirah Arabian Ranches Victory Heights Al Furjan The Springs & The Meadows Dubai City Wide -7% -7% -6% -5% -3% -3% -5% -5% 0% -6% -7% -8%-8% -14% Last 3 Months Last 6 Months DUBAI SUPPLY AND DEMAND EQUATION Incremental Population Demand (Number of Families Incremental Units Supply 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 Expected DUBAI REAL ESTATE TRANSACTIONS BY COMMUNITIES 14% 12% 10% 8% 6% 4% 2% 0% BusinessBay DubaiMarina InternationalCity JLT DubaiLand JVC SportsCity Downtown Greens&TheViews PalmJumeirah DiscoveryGardens Springs&Meadows TECOM-C IMPZ ArabianRanches Motorcity OtherAreas DUBAI RESIDENTIAL SUPPLY -8% -10% -12% -14% -7% -7% -7% -8%-8% -14% Last 3 Months Last 6 Months DUBAI SUPPLY AND DEMAND EQUATION Incremental Population Demand (Number of Families Incremental Units Supply 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 Expected DUBAI REAL ESTATE TRANSACTIONS BY COMMUNITIES 14% 12% 10% 8% 6% 4% 2% 0% BusinessBay DubaiMarina InternationalCity JLT DubaiLand JVC SportsCity Downtown Greens&TheViews PalmJumeirah DiscoveryGardens Springs&Meadows TECOM-C IMPZ ArabianRanches Motorcity OtherAreas DUBAI RESIDENTIAL SUPPLY 72,000 Units 34,000 Units Expected Supply for the next 2 years Actual Supply in the last 2 Years PRICE CHANGE: DUBAI APARTMENTS 0% -2% -4% -6% -8% -10% -12% -14% Last 3 Months Last 6 Months -1% Dubai Marina -7% -7% -7% -7% -4% -8% -3% -8% -5% -6% -8% -8% Discovery Gardens The Greens JLT Downtown Sports City JVC Business Bay Dubai City Wide -3% -3% 0% -11% -7% 0% -2% -4% -6% -8% -10% -12% -14% PRICE CHANGE: DUBAI VILLAS JVC Palm Jumeirah Arabian Ranches Victory Heights Al Furjan The Springs & The Meadows Dubai City Wide -7% -7% -6% -5% -3% -3% -5% -5% 0% -6% -7% -8%-8% -14% Last 3 Months Last 6 Months DUBAI SUPPLY AND DEMAND EQUATION Incremental Population Demand (Number of Families Incremental Units Supply 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 Expected DUBAI REAL ESTATE TRANSACTIONS BY COMMUNITIES 14% 12% 10% 8% 6% 4% 2% 0% BusinessBay DubaiMarina InternationalCity JLT DubaiLand JVC SportsCity Downtown Greens&TheViews PalmJumeirah DiscoveryGardens Springs&Meadows TECOM-C IMPZ ArabianRanches Motorcity OtherAreas DUBAI RESIDENTIAL SUPPLY PRICE CHANGE: DUBAI APARTMENTS 0% -2% -4% -6% -8% -10% -12% -14% Last 3 Months Last 6 Months -1% Dubai Marina -7% -7% -7% -7% -4% -8% -3% -8% -5% -6% -8% -8% Discovery Gardens The Greens JLT Downtown Sports City JVC Business Bay Dubai City Wide -3% -3% 0% -11% -7% 0% -2% -4% -6% -8% -10% -12% -14% PRICE CHANGE: DUBAI VILLAS JVC Palm Jumeirah Arabian Ranches Victory Heights Al Furjan The Springs & The Meadows Dubai City Wide -7% -7% -6% -5% -3% -3% -5% -5% 0% -6% -7% -8%-8% -14% Last 3 Months Last 6 Months DUBAI SUPPLY AND DEMAND EQUATION Incremental Population Demand (Number of Families Incremental Units Supply 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 Expected DUBAI REAL ESTATE TRANSACTIONS BY COMMUNITIES 14% 12% 10% 8% 6% 4% 2% 0% BusinessBay DubaiMarina InternationalCity JLT DubaiLand JVC SportsCity Downtown Greens&TheViews PalmJumeirah DiscoveryGardens Springs&Meadows TECOM-C IMPZ ArabianRanches Motorcity OtherAreas DUBAI RESIDENTIAL SUPPLY Actual July 2015 Issue -32 /// 11
  11. 11. If you have any queries about buying or renting, please email at 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 I will definitely suggest you to buy an apartment rather than renting the apartment. Dubai currently offers excellent option of owning an apartment due to the interest coming down as low as 3.99% by most of the banks. Keeping in mind the current rental, which is substantially high, so instead of paying high rent one can almost spend same money, which will go as your EMI and at the same time you will make your asset. It will also give you an advantage of capital appreciation. Even if you don't have a clear vision for long term stay, I would still recommend you to buy a property, because a good property in Dubai is very liquid compared to any other international markets. Yes, you can back out of the MoU. The penalty is a subject which is based on the MoU clauses agreed by both the parties(the buyer and the seller). Just to update a valid MoU, which is a RERA format MoU, not the MoU just signed between the parties. If the MoUsaysthatanypartybackingoutwouldpay an x amount then that party needs to pay. If the party does not pay the penalty agreed, then the other party has the right to file a case. To start with, either you can shortlist the property through property engine, go through all the details, and if you are not satisfied then you can plan your trip, coordinate with real estate agency to show you the properties, once you have decided you can put an offer along with security deposit to confirm your seriousness to broker, the broker would then confirm from the seller, once accepted you can sign the MoU. Signing could be done sitting in London, then you have to be here in Dubai at the time of title transfer where the property will come in your name and seller will receive all money from you in the form of manager's cheque, in case you want to avoid travelling, then you can give a power of attorney to any of your known friend in Dubai, which should be attested by Ministry of Foreign Affairs and Dubai Embassy. Once you have bought the property then you can assign any real estate company or company, which specializes in rental and property I have been in Dubai for a few years now and I'm renting apartments all throughthistime.Mymonthlyincome isAED45,000.Whatdoyousuggest,continue rentingorbuyanapartment? Can I back out after signing a Memorandum of Understanding (MoU)? What will be the penalties involved and does the buyer have the right to suemeoverthis? I'm currently based in London and I'm very much interested in investing in Dubai. How do you help with title transfer and the further renting and managementoftheapartment? EXPERTADVICE Ahid Sheikh Director Dejavu Real Estate management. They will completely look after your property and the tenant. There are different packages offered depending on the services, generally it starts from 5% and goes upto 10% of the rental value. DubaiSkyline July 2015 Issue -32 /// 12
  12. 12. If you have any mortgage related queries, please email at 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 Yes,youcandecideagainstthepurchase even after a pre-approval. The premise behind securing a pre-approval prior to finalizing on a property is to reduce the risk of losing out on your security deposit. The pre-ap- proval serves as comfort and helps in your plan- ning since it also gives you an idea of the exact My real estate agent informed me that, it was better for me to obtain Pre-Approval before finalizing on the property. Can I decide not to buy the property after getting a Pre- Approval? What do you suggest? EXPERTADVICE My advice is that you at least talk to an expert about both offers. There is a general misconception that the low- est rate is the best product. This is not so. There are quite a number of variables that go into selecting a mortgage product and the idea is to ensure that it meets your exact needs, gives you peace of mind and saves you money. So, for instance: “Is this new rate lower over the ‘perceived’ duration of the loan? How costly is the insurance payment when compared to your current mortgage? Will the initial capital outlay required for the switch make the over- all cost higher than your current obligation? I’veabusinessloaninonebankanda home loan with another, the former offers a better rate for home loans and I wish to transfer my existing loan. Is it a feasibleoptionandshouldIinvolveanexpert? Feyisesan Ekundare Business Development Middle East/Africa M: +971 050 4168 548 Yes,youcanputinajointapplicationto secure a higher mortgage value if your individual salaries are not enough to guarantee you being eligible for your preferred mortgage loan amount. My wife and I have a joint monthly income of AED30,000. Can we apply for a higher mortgage value or the value will be based individually on our salaries? And finally, what suits you best- lower monthly payments or lower long term cost? An expert will be able to assist you in answering all these questions. debtfundingyouhaveavailablefromthelender. Besides, if afterwards you decide you need more time before making the purchase, most pre-ap- provals remain valid for 60 days. Furthermore, you can renew your pre-approval by simply updatingyourfinancialrecordswithyourlender anytime after the 60 day period. PalmJumeirah July 2015 Issue -32 /// 14
  13. 13. Is your home equity underutilized? .ae Take advantage of the current low mortgage rates and put your money towards a better use. 2.99% We can make your home equity work for you! InvestMe Financial Services LLC, 608, Dusseldorf Business Point, Al Barsha 1, Dubai +971 (0) 4 453 4400
  14. 14. EXPERTADVICE If you have any legal queries about buying or renting, please email at Our expert answers the legal queries about buying and renting properties. w i t h l e g a l e x p e r t There are a number of issues to con- sider here. First, the service of the notice by the landlord was by email. The law states that service has to be by registered post, unless otherwise agreed in the lease. So subject to what’s in your lease, the service was defective and the notice can therefore be ignored. Second, notices seeking to increase the rent have to be served at least 90 days before the expiry of the lease. From your query, it seems that the landlord has complied with this requirement. Third, the rent increase can only be in line with the RERA rental cal- culator. If, therefore, the rent you are currently paying is in excess of market rate, then it’s unlikely that the rent calculator will sanction any increase at all, and certainly not a 30% increase. But the bottom line is that the notice has not been properly served and can therefore be ignored. Whether you want to bring this fact to the attention of the landlord at this stage, or wait until 89 days before the expiry of the lease, is up to you… The law states that you can terminate the tenancy if you wish to sell the prop- erty. However, the tenancy can only be terminated on a 12-month notice. So you will need to serve a notice on the tenants informing them that you wish to take vacant It’s very much a matter of fact. If you have complied with the terms of the lease by leaving the property in the condition in which it was when you went into occupation, fair wear and tear excepted, then you are entitled to a full refund of the deposit. If the landlord believes that the repair works are not sufficient to put the property back into the appropriate condition, then he may choose to carry out those works himself, and deduct the cost from the deposit. If you dispute the need for the landlord to carry out additional works, then the matter should be referred to the Dubai Rental Dispute Settle- ment Centre. My landlord mailed me a notice last week, revealing a 30% rise in rent upon renewal. I’ve rented this apart- mentsixmonthsagoandIhavenoticedthat I’m currently paying a rent that is 10% more thantheaverageofthisarea.Pleaseadvise. I need to sell my apartment which is currently rented by a family, the new ownersarebuyingtheapartmentfor theirpersonaluseandtheywantmetoevict mytenants.Whataretheproceduresforthis and is it possible to evict tenants before the contract period? Iwasinformedthatacertainamount will be deducted from my deposit for repairs. But I paid for all the repair works myself and I have the receipts show- ing that. Will I be able to claim for a com- plete refund? Jerry Parks Partner Taylor Wessing possession on the grounds that you are selling the property. That notice should, according to the letter of the law, come into effect in 12 months time upon expiry of the lease. In practice that means you will have to renew the lease on expiry, but only for the period up to the 12 month eviction date stated in the notice. The reference in the law to “the expiry of the lease” has caused confusion, and initially it was thought a full 12 months renewal had to be granted, but the Rent Authorities have clarified that the new lease can be for a reduced term to provide for a 12 month notice period in total from the date of service of the notice. So having served the notice you can sell the property and the buyers can move in on the tenants vacating on the given notice date. However, just recently the Rent Authorities have indicated that, contrary to common prac- tice, a buyer cannot rely on a notice given by a seller. If that position is maintained, it means that the buyer will have to serve the notice after completion of the sale, and the 12 months notice period will run from then. It suggests that a buyer can inherit the benefit and bur- den of the current lease, but cannot inherit the benefit of a notice previously served. Suffice it to say this is currently a grey area, and until clar- ification is given, the safest thing would be for both seller and buyer to serve notices. Dubai Marina July 2015 Issue -32 /// 16
  15. 15. SULAFA TOWER, DUBAI MARINA THE MOTHER OF ALL INVESTMENT DEALS! READY UNITS ON 7-YEAR PAYMENT PLAN. ONLY 2-BEDROOM UNITS LEFT! INTERESTED? Call our Sulafa Specialized Consultants for more information or to arrange for a private viewing on +971 4 325 1616, +971 50 916 6543, or visit WELL-MAINTAINED & MANAgED SINcE 2011 BY ThE AwARD-wINNINg ISO 9001:2008 cERTIFIED hARBOR REAL ESTATE PROPERTY MANAgEMENT TEAM A BIgSELEcTION OF VACANT & RENTED UNITS gENERATINg IMMEDIATE ROI 10% DOwN- PAYMENT OF AED 214,200 PAYMENT FOR 84 MONThS AED 22,950PER MONTH gREAT RENT ROI OF 50%FOR ThE FIRST 3 YEARS STARTINg FROM AED 2,142,000ON 7-YEAR PAYMENT PLAN Exclusive Marketing & Sales Consultant Holding Company • Ideally situated within walking distance to the Nakheel Metro Station, The American University in Dubai, The Walk at JBR, Dubai Media City and Dubai Internet City • State-of-the-art health club facilities: gym, swimming pool and kids’play area • Luxurious lobby, secure covered parking, 24-hour concierge, modern building security, in-house laundry shop, supermarket and comfortable waiting area • Reputable facility management, maintenance and property management service providers • BUA starting from 1,372 sq.ft. Amazing! But wait, there’s more! The figures presented here do not take into account: • Annual capital appreciation which would be swift and guaranteed in the years leading up to Expo 2020 • Expected annual rent increases prior to and during Expo 2020 • Monthly cash flow impact in favor of the buyer • The average rent ROI in Dubai Marina is at to 6% P.A. Our payment plan guarantees you 16.7% ROI per annum
  16. 16. While all new property in Dubai is built to Green Building standards, experts say there are still ways homeowners can reduce costs on their property, writes Andy van Smeerdijk. July 2015 Issue -32 /// 18
  17. 17. W hether you’re a home- owner, buy-to-let purch- aser or a tenant, there are many ways to reduce your power and water bills, experts say.There are many innovative means of reducing water and energy use, says Enda Colfer, Anthesis Consulting. “Use sensors at home to turn off lights when no one is in the room. Raise the temperature controls in your apartment to 240 C. These measures will save dirhams.” When buying or renting a property, understanding maintenance costs is vital, says Pablo Izquierdo, WSP/Parsons Brinckerhoff. “The more sustainable the operation of the building, the lower the running costs.” EFFICIENT WATER USE According to Dubai Electricity and Water Authority (DEWA), on an average, Dubai residents use 500 litres of water per day, 200 more than the international average. But many experts foresee ways of saving water – and money. In apartments, saving water largely depends on the flow rates of taps and showerheads, July 2015 Issue -32 /// 19
  18. 18. says Simon Gowland, Building Physics Modelling Group. “Low-volume taps and showerheads can save 50% on water usage,” he says. Irrigating gardens require lots of water, especially if the lawns are large, he added. “So choose an apartment or a villa with a small area of lawn and landscaping. Also, consider xeriscaping – the use of drought- tolerant plants and gardening techniques that reduce water demand.” Rob Carr, WSP/Parsons Brinckerhoff, agrees. “Using drought- USE SENSORS AT HOME TO TURN OFF LIGHTS WHEN NO ONE IS IN THE ROOM. RAISE THE TEMPERATURE CONTROLS IN YOUR APARTMENT TO 240 C. THESE MEASURES WILL SAVE DIRHAMS. ENDA COLFER ANTHESIS CONSULTING tolerant species and swapping lawns for dry landscaped areas or fake grass will have a massive effect on the water consumed.” ENERGY SAVINGS When inspecting a property, Pablo recommended checking for dual- flush toilets – those with two buttons for low and high water discharge. “Taps and showers should have aerators: a small add-on that allows air to mix with the water, reducing the total amount of water used.” It’s vital to get an expert to do a property energy audit to identify potential savings Pablo says. Checking windows is vital, he adds. “Ensure they are double-glazed. Look also for poor construction details such as cracks that allow hot air to infiltrate the house.” Many energy saving measures cost nothing, he says. “Setting the room temperature between 240 C and 260 C has no cost COVERSTORY July 2015 Issue -32 /// 20
  19. 19. especially the case in developments where each apartment cannot be metered separately and the cooling charge for common areas, lobbies and swimming pools are recharged to tenants based on an apartment’s area or volume. Apartment towers in Dubai, however, often have their own chiller plant in which the tenant either gets the cooling free or at a reduced cost.” Simon says apartment buildings use less energy for cooling compared to villas because units have lower external heat gains, being connected to each other. “Villas also have higher air infiltration rates from the outside and may also have swimming pools, which use a lot of energy.” Installing ceiling fans in living areas was the biggest energy saver, he reckons. “Ceiling fans allow occupants to switch off their air-conditioning (AC) whenever the indoor temperature is below 290 C, rather than the standard 230 C.” As units have low external heat gains, their rooms can do without AC for 10-11 months of the year, he says. “Owners/tenants should consider only switching on AC cooling for the room they are in.” Residents should also have their AC cleaned every 12 months to ensure the system is not clogged, which increases energy use. Simon says ceiling fans could save up to 45% on cooling energy costs – in living areas but not bedrooms. Cleaning AC filters regularly could save 25% on cooling energy while energy efficient lighting and appliances could save up to 30%. ADDING VALUE Many water and energy saving measures will ultimately add value to properties, Enda, of Anthesis, predicts. “As awareness about protecting the environment and the impacts of climate change improves, and as the costs of energy and water in Dubai go up, then the value of properties that are energy- and water-efficient will also increase. “In the Middle East we are still used to relatively cheap power and water; however, this is likely to change as government subsidies are reduced.” but can reduce the running costs of a house. Also, switch off laptops, screens and other appliances as they still use energy while on standby.” Other measures include replacing light fittings with efficient fluorescent lamps or LED, which can reduce costs by up to 90% compared to traditional bulbs. If you’re thinking of buying a second-hand villa or apartment, ask for a copy of a recent DEWA bill so you can check the costs, Simon recommends. District cooling can be expensive, he warns. “This is COVERSTORY July 2015 Issue -32 /// 21
  20. 20. Whatwastheinspirationbehindthe Wasl District project? Tell us more aboutitsdifferentcomponents-the souq,residentialapartments, office buildings, serviced apartments and hotel. Wasl District’s theme is to reflect the UAE’s rich architectural heritage through a harmonious blend of the contemporary andhistoric.Thedevelopmentpaystribute to the first modern hospital in Dubai, the Al Maktoum Hospital, by preserving its original building for heritage value. There are plans by the Dubai Culture and Arts Authority (Dubai Culture) to convert the restored building into a museum, incorporating it as a main tourist feature. TheinspirationforWaslDistrictwasdrawn from Dubai’s architectural background, with the design team employing components that pay tribute to cultural aspects and the local spirit. Wasl District is a mixed-use development comprising four components. The first, which was completed and officially opened to the public this year, is the souq, which hosts 211 retail shops. This central market was designed to have a traditional style but offers modern conveniences, such as basement parking and a modern cooling system, which keep the outdoor structure’stemperaturesignificantlycooler than its surroundings. The additional three components are currently under construction and due for completion in 2017. They comprise residential dwellings (356 units), commercial spaces (53 offices) anda196-roomHyattPlacefour-starhotel. Wasn't choosing the Naif area in Deira to be home to this project a risky move, seeing as most new projects tend to be set against the glitzier backdrop of new Dubai? Wasl designed and developed the project to reflect the historical importance of Deira as a vibrant trading hub. The souq and the surrounding development with its four-star hotel, office space and residential components perfectly highlight the strategic importance of the area. Whenever Wasl has undertaken redevelopment projects, such as it has in Karama and Deira, it has done so with a commitment to elevating standards. Our aim is to transform long-standing neighbourhoods with modern amenities, while at the same time preserving their traditional essence. We aim to bring to these areas a sense of modernity and quality that is synonymous with Dubai’s most up-to-date offerings and at the same time, stay true to the values of the city. ‘Old’ Dubai is where it all started for the city and we are committed to investing in these significant, yet sometimes overlooked, areas. What role do you think Wasl District will have in giving this part of Dubai a new lease of life? Naif is a very busy neighbourhood but one with few modern amenities. For example, visitors to Deira find a lack of parking to be a major inconvenience and itsresidentshavelackedthefacilitiesfound in more modern areas of the city. There is also a lack of high quality residential, commercial and hospitality offerings there. Wasl District changes all that with an upgraded offering for people who prefer that particular part of the city. It will be a self-sustained hub reflecting the country’s traditions through its beautiful architecture and with a range of modern amenities and ample parking. It is a major project valued at approximately Dh1.2 billion and we expect it to be one of Deira’s main landmarks when fully completed. Wasl District is reshaping the area and has started to positively impact its surroundings. What makes the souq offering here different from the ones in say Souk al Bahar and Madinat Jumeirah? The souq at Wasl District caters to the needs of the local neighbourhood, as well as to the needs of tourists who visit the area for its historical importance. The retailers at Wasl District sell items synonymous with local culture such as carpets, antiques, furniture, perfumes, spices and musical instruments. Modern- day products such as electronics, fashion items and jewelleries are also available through branded retailers, ensuring a comprehensive mix of the traditional and contemporary. WASLDISTRICT:APERFECT BLENDOFPASTANDPRESENT Renownedforitsportfolioofnicheandinnovativeprojects,Wasldevelopersonce again raises the city’s property bar with its latest offering Wasl District. Jehan Nizar speaks to Hesham Al Qassim, CEO of Wasl Asset Management Group to uncover lesser known facts about the project that is poised to give the city’s once bustling trading hub of Deira a renewed lease of life. MARKET July 2015 Issue -32 /// 22
  21. 21. SNSPROPERTIES M: +971 55 948 0495 | +971 56 144 9976 T: +971 4 3957593 | F: +971 4 3942533 DED Lic. No. 647941 | ORN 2576 Where Perception Meets Reality FORTE DOWNTOWN Size ranging from: 2 Bedroom: 1,004 - 1,130 sq. ft. 3 Bedroom: 1,555 - 1,709 sq. ft. WHY FORTE • Located in The Opera District, at the heart of Downtown Dubai • Views of Dubai Opera, Opera Plaza and The Dubai Fountain • Premium finishes & luxurious units • Museum/art gallery within the podium• Museum/art gallery within the podium FEATURES: • Located in The Opera District, at the heart of Downtown Dubai • Offers the ultimate views of Burj Khalifa, The Dubai Fountain and Downtown Dubai • Offers a variety of design studios, art galleries, comedy clubs and the superb Dubai Operacomedy clubs and the superb Dubai Opera FOLLOW US ON: /SNSPropertiez @snspropertiez SNS Properties 2 BR for AED 2 million onwards 3 BR (w/ Burj Khalifa and Fountain View) AED 3.9 million onwards in THE OPERA DISTRICT OPERA GRAND DOWNTOWN Size ranging from: 2 Bedroom: 1,361 - 1,720 sq. ft. 3 Bedroom: 2,042 - 2,691 sq. ft. 4 Bedroom: 3,029 - 3,049 sq. ft. WITH FULL BURJ KHALIFA & FOUNTAIN VIEW in THE OPERA DISTRICT Who was the chief design influencer for this project - was it a particular individual or a company? Wasl’s blueprint for all its operations follows His Highness Sheikh Mohammed Bin Rashid Al Maktoum’s ambitious plans for Dubai. The company’s strategy in developing a particularprojectalwaysstartswiththehigher management’svision,whichisthentranslated into a brief for the design team. Wasl utilises renowned design consultants and partners from the local and international markets for this process. Once the design concept has been established, it goes to Wasl’s Executive Committee for full review. The committee ensures that the project complies with the company’s overall mission and strategy. With specific regards to Wasl District, the mix of the development was based on targeting the right audience in the Deira district; including retailers, residents and tourists. How do you think this project reflects the rich heritage of the UAE? Wasl District incorporates the design elements foundintheUAE’straditionalarchitecture.The layout of the souq evokes the spirit of ancient Arabiawithitsnarrowandwindingsikkasthat arereminiscent of the city’s historical markets. The materials used in the development, its colours, the alleyways and fountains all reflect the richness of old urban spaces in the UAE and reveal how the country’s early inhabitants were able to sustain themselves and create delightful, sustainable living and commercial spaces. Who do you foresee as the target audiencewhenitcomestotheresidential units on offer? Our target audience is residents living in Deira who desire an upgrade but can’t find suitable accommodation. They enjoy living in Deira for a variety of reasons, such as proximity to their businesses or having friends and families in that area. Many find the extensive transport facilities including the RTA buses and Dubai Metro that are a predominant feature of the area to be an important factor. The target audience for the souq is generally tourists from both the GCC and western countries, as well as local customers looking for good quality unique products. Why do you think tourists would choose to stay in the hotel here when on holiday in Dubai? Travellers from the GCC like to visit Deira for many reasons. It is rich in culture and is an important trading hub. In addition to being in closeproximitytotheWaslDistrictsouq,tourists are within easy reach of the Dubai Creek, the goldandspicesouqsandothertraditionalareas in the city. Wasl District’s Hyatt Place hotel will offer top quality service at affordable prices, making the area more attractive for visitors. The hotel will be situated in one of the most centralisedzonesofthecityandwithinwalking distance of many attractions. How many years in the making has this project been and when do you anticipate it to be fully slated for completion? Phase One of Wasl District, the souq, was completed in the third quarter of 2014 and officially opened for business in the first quarter of this year. Phase Two is expected to be completed in 2017. Do you think your project will set the wheelsinmotionforawholenewstring of projects in the older parts of Dubai? Wasl is committed to reinvigorating the traditional areas of Dubai and as such, has numerous developments taking place in established districts across the city. We have a new hotel coming up in Bani Yas, as well as several other hospitality offerings in the Bur Dubai area. We have recently launched a number of projects in Karama, as well as Wasl Trio in Muraqqabat, which is a mixed- use project with hotel, residential and retail components. We are also building residential and hospitality properties in Qusais. WASL DISTRICT’S THEME IS TO REFLECT THE UAE’S RICH ARCHITECTURAL HERITAGE THROUGH A HARMONIOUS BLEND OF THE CONTEMPORARY AND HISTORIC. HESHAM AL QASSIM CEO OF WASL ASSET MANAGEMENT GROUP
  22. 22. What is this show all about? MEMAAR is the first-of-its-kind property reality TV show in the Middle East. The show is broadcasted during prime time viewing weekly on Dubai TV with multiple repeats on Dubai TV and Sama Dubai TV. Viewers can also follow the show online through The show’s aim is to provide insights into the machinations of Dubai's real estate industry in an entertaining yet informative way. We all know that Dubai is a preferred real estate investment destination with celebrities, identities, successful entrepreneurs and the business elite from all over the world investing in the emirate. The show allows the average viewer to appreciate the considerations, opportunities, issues and eventual decisions required to make a sound and lucrative purchase as the journey from the initial idea or need to the eventual purchase is captured on film and presented to the viewer in a highly entertaining and interesting format. Even though the show features high net worth individuals, it is interesting to note that many of issues and concerns that arise and are dealt with on the show are shared and relevant to the everyday property investor as well, whether he/she isapotentialowneroccupieroralandlord in the making. Pleaserunusthroughthesegments within the show.... WeallknowthatrealityTVisthenewgenre of television production that has taken the global TV viewing market by storm. MEMAARisaground-breakingproduction in that it is the first property reality TV Show to be produced in the Middle East. The show runs for one hour and is designed to be fast moving, engaging and informative. This is not difficult as there are many considerations, decisions, steps and milestones to be achieved during the process of purchasing or even leasing a property and always opens with a teaser segment that showcases some of the exciting parts and events of each episode. The celebrity guest pertaining to that particular episode is then introduced to gain an appreciation and insight into his/her background, lifestyle, aspirations andwhatkindofpropertytheyarelooking for in Dubai. This is often enlightening as many viewers come to realize that their own requirements, concerns decisions regarding the purchase of a property is similar to their own. We call the next segment the "Wish List" which entails I, as host of the show, meeting our celebrity guest for the first time to assist in the development of a detailed brief of what would the ideal property would be for the celebrity guest. This should be standard procedurewithintheindustryandiscritical in determining what the client actually wants. It also enables an initial estimation of what is realistic and feasible and INTHELIMELIGHT MEMAAR,apopularTVshowonDubairealestatemarketairedonDubaiTV,featuresMohanad Alwadiya, knownas‘TheWolfofRealEstate,thedynamicManagingDirectorofHarborRealEstate.ByBineshPanicker MARKET July 2015 Issue -32 /// 24
  23. 23. enables all parties to refine and redefine requirements in the most effective and efficient manner. Once the initial brief is fullydefined,the"ResearchPhase"kicksoff in earnest where the specialized team at Harbor Real Estate conducts an extensive searchfortheidealpropertythatmeetsthe guest's brief and ultimate expectations. This phase is critical as it is important to identify possible alternatives as quickly as possible to ensure as many possible options as necessary can be identified and reviewed prior to presentation to our celebrityclient.Thenextsegmentcaptures the"viewingexperience"inwhichtheguest is chaperoned through the options that bestmeettheguest'srequirements.During this phase the viewers will experience the emotions,reactions,thinkinganddecision process that the guest will go through. During this segment, we will witness how real estate is more about lifestyle and the emotional connection we all have to our homes with the rational benefits really used to either justify, ratify or challenge our emotional inclinations. Thefinalsegmentshowsourcelebrity client being assisted through the steps of "Analysis and Selection". This is where the true emotional and rational factors come to play and where the client needs to be guided through the decision process with objective input, analysis and observations about the decision alternatives at hand and closes with "The Signing" segment which captures the moments of excitement, appreciation and satisfaction as each guest becomes the proud new owner or tenant of a piece of Dubai property. As an added value component to the show, we have introduced "Vlogs" which are video clips introducing useful and interesting tips, updates, general Real Estate information for our viewers. ... And the kind of people take part in the show? We are fortunate to have had celebrities from outside the region and within the Arab world as well. For example, Dr. Majd Naji, the mostawardeddentistintheArab world required new premises from which toconducthisgloballyrenowneddentistry practice. KarlaCavalli, aglobalTVcelebrity and former Miss USA required a luxury getaway in Dubai and Professor Farouq Safi,ofGerman-Syrian descentandoneof the most popular and respected surgeon in Dubai who acquired a new villa for his ageing mother. With the diverse nature of ourguestcelebrities,weareabletopresent a broad cross section of Dubai's premium projects. We have featured the highest office floors on earth at Burj Khalifa, villas at Al Barari, unique projects such as Dubai SustainableCitywhichoffersbuyerssmart environmentally friendly homes with zero annual service charges and exceptional investment opportunities in affordable communities such as Skycourts and Queue PointinDubailand What was the inspiration to launch such a show? The existence of every living person living today is somehow affected, influenced or determined by Real Estate related matters. Other than food and water, there is nothing more important to all of us than to have the safety and security, both physical and emotional, of own home for our personal benefit and the benefit of our loved ones. So, the show is relevant to everybody. From an economic or industry perspective, Dubai's Real Estate sector has grabbed the attention of the entire globe for some time now and for a variety of reasons. There is unprecedented global, regionalandlocalinterestintherealestate sector in Dubai. So this show emerged as an idea from Dubai Channels Network a division of Dubai Media Incorporated, the official government broadcasting arm to promote Dubai's burgeoning Real Estate Industry which, of course, will play an important role in the successful hosting of the best Expo that the world will ever witness in 2020. Why did you choose to be a part of this show? It's for the same reason why I have been teaching at the Dubai Real Estate Sector since 2009... I'm a strong believer in the VisionofDubaiandtherolethattheDubai Real Estate Industry will play in realizing thatvision.Ihavebeenpartoftheindustry for over a decade. I'm so passionate about Dubai and its real estate sector that, when approached by the Dubai TV team to play a role in the shows production and presentation I didn't hesitate. I would love to be part of the effort that promotes Dubai and its dynamic Real Estate sector which I'm very passionate about. What is the kind of rating or viewership is the show currently achieving? The official ratings are not out yet. We have 7 episodes so far and we had to stop broadcasting during the holy month of Ramadan. We have 19 new exciting episodes in season 2 which will start airing in September. Having said that, the feedbacksofarhasbeenextremelypositive from social media platforms, media and industry stakeholders ... from clients, developers, finance providers, potential new sponsors and even government officials and royal family members. The hundreds of positive emails and social media messages we receive after each episode goes to air is a very good indication that the show is well received and we have already regular followers that provide constructive criticism and well intentioned feedback. The potential of the show in terms or audience relevance, reach and appeal was identified very early by entities such as Union Properties, one of the most renowned master developers even the clothingretailerKennethColewhoagreed to supply my wardrobe and we thank these companies for their shared vision for the show and invaluable support. We arenowbeinginundatedwithexpressions ofawidevarietyofcommercialenterprises wishingtocontributetotheMEMAAR.This is just further testament of how relevant andengagingtheprogramisprovingtobe with a wide range of viewers representing almost every socio-economic stratum. MARKET July 2015 Issue -32 /// 25
  24. 24. The collaboration between DAMAC Properties and Paramount Hotels & Resortsfortheseservicedresidences is rather unusual, would you say it wasanaturalfitandwhatinitiatedit? DAMAC Properties and Paramount Hotels & Resorts have been in collaboration for almost three years and we have a numberofveryexcitingproductscurrently under construction across the region. The combination of the development experience we bring along with the unique offering a branded Paramount project can offer, creates a very desirable living environment, which has proved very popular with our wide customer base. Paramount Tower Hotels & Resorts offers a whole new experience with its luxury serviced residence and is one of the most talked about partnerships in the market. Our first project, DAMAC Towers by Paramount Hotels & Resorts will open next year, and is already well on the way to being sold out. Do you see a rising need for serviced residences in Dubai and if so, what are the factors that can be attributed to this? Tourism is growing at an exponential rate in Dubai and there is a clear need for many more hotel rooms and hotel ANASPIRATIONALADDRESS Niall McLoughlin, Senior Vice-President, Damac Properties, tells Jehan Nizar why a collaboration between DAMAC Properties and Paramount Hotels & Resorts could only spell class residencesinthecitytosupportmorethan 20 million visitors a year within the next five years. Dubai currently has just under 100,000 rooms currently in the market, with less than 15,000 under development according to STR Global. Dubai Tourism and Commerce Marketing has stated that the emirate will require an excess of 165,000 rooms by 2020 – pointing to a clear supply/demand imbalance. We believe that hotel apartments offer the best of both worlds to buyers and visitors – providing the luxurious hospitality servicesofafive-starhotelwiththehomely comforts of a room that includes a fully- fitted kitchen and numerous bedrooms to accommodate a family. MARKET July 2015 Issue -32 /// 26
  25. 25. Aretheseservicedresidencesforsaleor cantheyberentedaswell? Whydoyou think potential buyers would be more inclinedtowardsaservicedresidence? DAMAC Properties offers a unique business model to its hotel apartments offering which provides a great deal of choice and flexibility. Buyers can own a Paramount Hotels & Resorts unit and live there themselves, benefiting from all of the services of the hotel, including a concierge, restaurants and a stunning swimming pool and gymnasium. If a buyer so chooses, they can place their unit in our rental programme and we will manage it for them. Our team at DAMAC Hotels & Resorts will look after booking out the room, dealing with the guests, maintaining the unit and collecting the rent. The owner will then receive regular payments for the room, minus a small management charge. If the owner would like to use the room themselves, they can dosoortheycanrentitoutonalongterm lease in the open market. We are pleased with the number of buyers taking up the optiontoplacetheirunitintherentalpool programme and believe this is testament to the programme we offer. What are the options buyers can choose from and what are the price points like? Paramount Tower Hotels & Resorts offers, which sits on the Sheikh Zayed Road overlooking the Burj area skyline is the latest project to be launched. It is located in one of the most desirable areas in Dubai – indeed the world. Prices for hotel apartments in the tower start from AED1,800 per square foot, with options from studios all the way through to expansive penthouses. Anysignificancebehindchoosingthe Burj area for this project? TheBurjAreaofDubaihasquicklybecome one of the most aspirational places to live in the world. Millions of visitors come every year to enjoy one of the world’s most popular shopping malls, the stunning fountain displays and the views of the world’s tallest tower. We believe that this is one of the best locations to purchase, withpricesgrowingandthedemandhigh. What are some of the add-ons and premium facilities that residents can enjoy? The 64-storey Paramount Tower Hotel & Residenceswillofferaskylobbywithviews across the Burj area, a private Paramount Pictures screening room, the most picturesque rooftop infinity swimming pool overlooking the Downtown area with a terrace and a fitness and wellness centre with a state-of-the-art spa. Owners can enjoy all the services that come with a five-star hotel in Dubai, with a dedicated concierge, the ability to have a chef cook in your apartment, a kids’ club and hotel rooms and suites, which are uniquely designed with influences of the renowned Paramount Pictures brand throughout. Does the film theme reflect strongly acrosstheproject?Ifso,pleaseelaborate. Paramount Hotels and Resorts brings to life the style of Paramount Pictures by drawing strongly from its 103-year history. This is reflected throughout the lobby and public areas as well as in the rooms. Rather than a direct reflection of the movies themselves, the setting will be inspired by the glamour of Hollywood as well as the “California cool” quotient that comes across in the movies. Utilising the PARAMOUNT TOWER HOTELS & RESORTS OFFERS A WHOLE NEW EXPERIENCE WITH ITS LUXURY SERVICED RESIDENCE AND IS ONE OF THE MOST TALKED ABOUT PARTNERSHIPS IN THE MARKET. latest technology from Hollywood, media mappingwillbeusedthroughoutallowing scenes to be changed across the course of the day, refreshing the environment and making the experience truly dynamic. Each room will have access to the full Paramount Pictures movie library (totalling more than 3,000 movies), the restaurants will embody many of the greatest movies and the employees will all be well-versed with Paramount’s strong movie history. Who do you see as your target audience for this project? There is a very wide global base of customers extremely excited by the launch of the Paramount Tower Hotel & Residences. We are seeing buyers from across the GCC, India, Pakistan and the UKlookingto owna unitwithinthis iconic project. The project suits anyone who is looking to capitalise on Dubai’s booming tourism market, by owning one of the most stylish and contemporary five-star projects in the emirate. Give us two top reasons why this is a project to watch out for. Location and brand association. There is no other project on the market today that offers such a stunning view across the Burj area of Dubai with a strong globally recognised lifestyle brand. MARKET July 2015 Issue -32 /// 27
  26. 26. D iamond Developers is on track to welcome the first residents at what promises to become the ‘greenest sustainable’ address in the emirate, along Al Qudra Road, after the summer. “We will start the handover of the five residential clusters with 100 villas each in the last quarter of this year, the community centre and the flats for leasing, and all the infrastructure will also be ready as part of Phase I. Actually, we will move our HQ to the city, so the management will also live here, myself I will already move in this summer,” says Emil Samarah, Chief Commercial Officer at Diamond Developers. Residents will receive a portrait of an Arabian horse as a welcome gift when they move into their courtyard or garden villa and be able to knock on the developer’s door, constructive criticism welcome. WHAT’S ON OFFER? The 46-hectare city will feature an equestrian centre with arenas for riding lessons and Arabian horse shows, an offer a horse cart to get around. More than just green shoots, the first of a series of 11 bio-domes, part of the central green spine already produces an array of herbs and veggies, which will be available at the city’s Friday community market. Add to that mouth-watering mangoes, citrus fruits, papaya, pomegranate, coconuts, and figs from the 3,000 trees to grace the spine. Apart from urban farming, the spine is set to become an active beauty spot, with a 100% recycled Falaj water system running from top to bottom with waterfalls, fountains, and little lakes. A jogging track, yoga and sports stations run alongside, shaded seating areas invite for a break, and a community swimming pool beckons to take a ‘real’ dip into the water. Four layers of 2,500 trees plus 1,000 palm trees, meanwhile provide shade for the horse, cycle and walking tracks in the 27 metres wide buffer zone circling the city. “The trees prevent the maximum amount of dust and noise coming in and shade. In total THESUSTAINABLECITY(TSC)READIESFOR HANDOVERLATERTHISYEAR The 46 hectare city will feature an equestrian centre with arenas for riding lessons and Arabian horse shows, an offer a horse cart to get around. By Nicole Walter/freelance writer MARKET we count 8,000 trees, which at 2,700 inhabitants gives us the highest number of trees per capita in the emirate,” remarks Emil. The developer has chosen native trees, or those that adapt well, conscious of water usage, has come up with a pebble-like design for the ready landscaped villa gardens using potted plants instead of a lot of grass. “Whatever we plant is commensurate with the water we have available,” Emil adds. According to the developer building on SEE (social, economic and environmental sustainability) practices, merely required a longer planning phase and education, rather than throwing up any construction challenges. SALES “We had to educate buyers on our NetZero service and maintenance fee scheme, UAE Nationals in particular loved the concept,” Emil says. In essence, this means that homeowners and prospective tenants do not have to pay fees, because their share of July 2015 Issue -32 /// 28
  27. 27. the revenues from the community centre, which offers the usual services, covers them. According to Samarah it essentially gives the buyer an extra piece of property, around 20% of the villa price. “The homes have to be affordable in terms of buying, renting, and maintenance. In reality you’re paying less than AED1,000 a square foot because of what you get back through the landscaped garden, golf cart, subsidy for buying an electric car, both can be charged at home, green star built-in kitchen appliances, solar system and LED lighting. You’re bound to save 75 percent on your electricity bill,” he adds. Along with the contemporary stylish looking design, including rooftop use of the L-shaped villas, allowing for light yet privacy, this recipe certainly drew buyers into the fold. The developer sold over 90% of 300 villas going for between AED1,150 and AED1,200 a square foot, by June. “We’ll keep the remaining 200 for leasing. If we handed over all the villas to the owners’ association, we would be afraid that we wouldn’t be able to deliver on what we promised. This is our flagship project,” Emil says. The mixed-use component also houses, offices, and 89 studios to two-bed apartments, the latter to be occupied by those working at the school and centre of excellence. However, a surplus would be offered for rent to the general public. Residents will move into a multi- cultural community of around 25 different nationalities, the developer barred ‘flippers’ from buying. “The challenge will be the first year of operations when we can study residents’ different reactions to our environmental concept. Prices will appreciate even more after people have moved in and they appreciate the lifestyle, the events we’re organizing in our grass amphitheatre for example, and the financial benefits. I guess whoever moved in will never move out,” remarks Emil. He reckons that the villas could be rented out for at least 10% more than market price, thanks to the savings, including a reduction of around 40% in water consumption. “We will be monitoring all houses, production and consumption and create a trend. If your consumption increases we’ll call you to see if you have a leak, or if production is down maybe you have a problem with the solar that needs to be fixed and so on. The city will be used as an outdoor lab benefitting the people living here,” Emil explains. Residents will also be educated on how to reduce and compost organic waste. EDUCATION&HOSPITALITYPHASEII Children’s education will include an environmental and outdoorsy WE WILL START THE HANDOVER OF THE FIVE RESIDENTIAL CLUSTERS WITH 100 VILLAS EACH IN THE LAST QUARTER OF THIS YEAR, THE COMMUNITY CENTRE AND THE FLATS FOR LEASING, AND ALL THE INFRASTRUCTURE WILL ALSO BE READY AS PART OF PHASE I. EMIL SAMARAH CHIEF COMMERCIAL OFFICER, DIAMOND DEVELOPERS. curriculum at the 1,000 places ‘green’ school, whilst professional engineers can top up their sustainability skills at The Sustainability Centre of Excellence. The Centre, a consortium led by UC Davies with universities in Egypt, Lebanon, Palestine and Sharjah participating, as well as the schools, science museum, planetarium, country club and eco-resort will complete by the end of next year. “We’ll look at how energy evolved, from rubbing two stones to fossil fuels and going back to nature using the sun, in the museum. In October we’ll break ground at the centre, which will also offer consulting services and conferences,” Emil says. The Centre, as a lifetime positive building will generate enough energy to run itself and generate a surplus covering the energy spent on building it. “It should be hopefully the first in the world which does that. We’ll quantify the amount of electricity spent, generate and use it, wherever we need in the city, or export it to the grid,” he enthuses. The 143-room eco-resort, in the final design stage, has already been branded with IHG’s Indigo to open its doors in 2017. “Like all our partners we selected them because we believe they share our sustainability passion. Indigo adapts to the neighbourhood in terms of look and feel, and services provided,” says Emil. “The hotel will be the first to be operated entirely by solar power, we’ll also have a solar powered shuttle to take residents and guests downtown. They can try their hand at urban farming as well,” he concludes. MARKET July 2015 Issue -32 /// 29
  28. 28. V aluation of property and assets is an important component of the property services business, which calls for deep understanding of the market dynamics. Hamptons, the leading real estate and consultancy firm, has now expanded its Valuations & Research team to leverage the growth and demand for its specialised services. Efthymios Progiopoulos, BEng, MSc, MRICS, Manager - Valuations & Research at Hamptons, explains the intricacies in valuation in an exclusive interview with Property Times, observing that “the challenge [in undertaking valuation services] is to be informed and to understand the pulse of the real estate market. It is all about trust.” Hamptons Valuations & Research has been strengthened now with a newteam.Canyoutellusaboutthe core services of the department? Our property valuations cover all kind of uses - from vacant land, residential, commercial, office, industrial, logistics (warehouses) and portfolios as well as specialised uses such as hotels, schools, health care & plant and machinery, among others. We provide valuations for transactional, internal, secured finance, accounting (financial reporting and audit) and insurance purposes. We also perform feasibility and custom-made market research studies to cater for all our clients’needs,usingourexpertiseanddeep knowledge of the local and international real estate markets. What has been the growth achieved by V&R in the past year? Where did this growth come from (which businesslinespecifically)? V&R has achieved 43% growth last year on billing compared to 2013. This growth hasbeenledbydemandforourspecialised services from all sectors. Why is valuation important and how does Hamptons ensure that it is to exacting standards especially in today’s rather softening market conditions? Information is the key to all important financial/investment decisions. A correct valuation is important as it provides information and sets a solid foundation upon which important investment decisions can be made. Hamptons is a Royal Institute of Chartered Surveyors (RICS) regulated company and all the reports are checked and signed by myself, an RICS Member and an RICS Registered Valuer.RICSisthemostgloballyrecognised institution regarding property valuations and Hamptons strictly adheres to RICS professional standards and guidelines. How do market volatilities, such as the ongoing price decline, affect the valuation process? The process itself is not affected by market volatilities.Thegoalistoderiveatanygiven time a reasonable and fair assessment of the asset’s value. The value fluctuates and is always influenced by outside factors such as market performance, supply and demand, the presence or lack of infrastructure, maintenance, age of the property and alterations, in a positive or a negative manner. Who are your key clients and what is the value that you offer to each segment of clients? Our main clients include financial institutions, insurance companies, major VALUINGITRIGHT Efthymios Progiopoulos, BEng, MSc, MRICS, Manager - Valuations & Research at Hamptons, explains the intricacies in valuation in an exclusive interview with Property Times. Compiled By Reshmi Raveendran MARKET July 2015 Issue -32 /// 30
  29. 29. asset holders and developers. We strive to provide our clients with the service they require whether it relates to their business goals, investment opportunities or financial reporting. Canyouexplainhowyouundertake valuation, especially in relation to international standards? What are the benchmarks you refer to in valuation? Do they change often? Hamptons is an RICS accredited company and applies the RICS Professional Standards, regarding valuations. Since January 2014 these standards are in line V&R HAS ACHIEVED 43% GROWTH LAST YEAR ON BILLING COMPARED TO 2013. THIS GROWTH HAS BEEN LED BY DEMAND FOR OUR SPECIALISED SERVICES FROM ALL SECTORS. withtheInternationalValuationStandards (IVS),setoutbytheInternationalValuation Standards Council (IVSC). There are a numberofvaluationmethodologies,each suited to each individual case, depending on the nature of the asset. Are you expanding to new areas in valuation? If yes, which are the growth areas and why are you confident of this expansion? Weareexpandinginallareasofvaluation, especially in the specialised uses sector. In my opinion the areas with the most growth potential are Plant & Machinery valuations as well as valuations for Financial Reporting purposes. Plant & Machinery valuation will expand as a result of our increased ability to undertake such instructions and Financial Reporting valuation will gain strength as more UAE companies choose to comply with the International Financial Reporting Standards (IFRS), for financial reporting. What are the key challenges in the valuation sector? How do you address them? The challenge is to be informed and understand the pulse of the real estate market. However, valuation is all about trust. Gaining trust is a lengthy process but it can be lost in an instance. We are proudofourstrictethicalandprofessional standards. We are transparent in all our dealings and make no compromises to our integrity. Those elements, combined with our deep knowledge of the local and international real estate markets, have led to an ever expanding number of clients. Providing reliable and relevant market research is critical in today’s environment. Who are your research clients? How do you ensure that your research is a true reflection of market trends? Weprovideresearchforavarietyofclients, financial institutions, major companies anddevelopers.Wehavetomakesurethat all our information is updated, collecting transactional data from a number of trusted external sources and Hamptons’ own database but also by performing primary research in the field for each individual case. What is your projection of the valuation business in the region, and are you looking at expanding the business to other geographic markets in the GCC? More and more people understand the benefits of proper valuation services. It is a service that goes hand in hand with the financial sector, and a growing economy will in effect increase the need for valuations. Hamptons, through its Dubai office covers all of the GCC, apart from Oman, which is covered by our office in Muscat. We are however taking active steps to streamline our delivery of service by teaming up with other companies in other GCC countries. MARKET DubaiMarina JLT July 2015 Issue -32 /// 31
  31. 31. APARTMENT IN SADAF 7 2 BEDS | SQ FT : 1,447 VIEW: PARTIAL MARINA VIEW AED: 1,850,000 APARTMENT IN RIMAL 4 3 BEDS | SQ FT : 2,172 VIEW: SEA VIEW | AED: 4,700,000 APARTMENT IN SHAMS 1 1 BED | SQ FT : 1,182 VIEW: COURTYARD VIEW AED: 1,650,000 APARTMENT IN SHAMS 1 2 BEDS | SQ FT : 1,375 VIEW: MARINA VIEW AED: 2,300,000 LOFT APARTMENT IN SHAMS 1 1 BED | SQ FT : 2,195 VIEW: SEA VIEW AED: 4,200,000 LOFT APARTMENT IN SHAMS 4 1 BED | SQ FT : 1,100 VIEW: MARINA VIEW AED: 2,600,000 APARTMENT IN SADAF 1 3 BEDS | SQ FT : 1,925 VIEW: PARTIAL SEA VIEW AED: 3,850,000 APARTMENT IN SHAMS 1 4 BEDS | SQ FT : 4,955 VIEW: FULL MARINA VIEW AED: 8,000,000 APARTMENT IN SHAMS 1 3 BEDS | SQ FT : 1,884 VIEW: SEA VIEW AED: 2,700,000 PENTHOUSE APARTMENT IN SHAMS 1 4 BEDS | SQ FT : 6,100 VIEW: FULL SEA VIEW AED: 12,500,000 Tel: +971 4 365 7700, ORN 422 Anastasiya Kazlouskaya Tel: +971 56 176 0538 | BRN 32865 JBR COMMUNITYCOMMUNIJBR The Jumeirah Beach Residence is one of Dubai’s most prestigious waterfront development created to accommodate about 15,000 people. The community was developed by Dubai Properties, which is a subsidiary of Dubai Holdings. The most outstanding element of the entire development is The Walk at JBR. It puts together an array of restaurants and retail outlets through the entire stretch with the beach just around the corner. JBR promises every resident of an exquisite view. The units range from studios to penthouses. AED 1,595/SQ.FT. (SALESPRICE) AREA 2 AED 8.8/SQ.FT. RENT/ MONTH Occupancy COMMUNITY CONNECTIVITY 90.42% Restaurants / Fashion brands / Super markets JOGGING TRACK / YOGA CENTERS SCHOOLS 3 TO CITY CENTER 5 HOTELS 10 200RETAIL OUTLETS TO PARK + 11 MINS TO AIRPORT 27MINS TO METRO STATION 10MINS MINS + + Svitlana kulova Tel: +971 56 174 2365 | BRN 32851
  32. 32. T he latest flagship develo- pment of Dubai Sports City the Canal Residences West’s Venetian is all set for handover. Following the successful completion of the first phase of hand- overs comprising of Canal Residence West’s European and Mediterranean buildings. Khalid Al Zarooni President of Dubai Sports City commented that “The handover of apartments within the Venetian building of Canal Residence West is an extremely proud, pleasing and exciting occasion for everyone at Dubai Sports City” The well finished 274 Venetian units include studio, one, two and three bedroom apartments, with numerous amenities like a swimming pool, gym and sauna facility. The Canal Promenade retail outlets, health centre and restaurants will be completed during the summer. “Each apartment in Canal Residence West comes with the superb benefits of living within Dubai Sports City,” Al Zarooni continued. “Those benefits include the fact that residents have a superb community lifestyle, with The Els Club, including its championship golf course and multiple dining options, on their doorstep, together with a range of schools and nurseries that cater for all ages.” ICC Academy, the Dubai Sports City Football Academy, the Sports Village and Fit Republik, a premier fitness facility, including an Olympic- sized swimming pool and gymnastics area are just a few minutes away for those living in the Canal Residence West. The DSC also features the Kickers Sports Bar and Champs Restaurats, overseen by the Former Real Madrid Spain legend Michel Salgado, coaching programs that won the Gold award for the Best Youth Development Programme at the Sports Industry Awards in Dubai in March. The Buth Hamon School of Golf and The Els Club are also close at hand. Designed by multiple major winner Ernie Els it was the location for last December’s Dubai Open, the final event of the 2014 Asian Tour. The Els Club also includes 261 Restaurant and The Big Easy Bar and Grill. It also has plenty of schooling options, Bradenton Preparatory Academy, Victory Heights Primary School and two Wonder Years Nursery schools. “Dubai Sports City is going from strength to strength and this handover of Venetian apartments is the latest illustration of that fact” added Vijay Sajjanhar, CFO of Dubai Sports City, “Everywhere you look, things are happening, and the fact that properties within Dubai Sports City offer one of the best returns on investment of anywhere in Dubai is another reason for people to look at what we have to offer “. “Also moving forward at great pace is the Fortuna Village development, the eighth residential area within Victory Heights, the villa community that fringes The Els Club, and that development is on target for completion early next year”, he also explained about the future developments. “With a fantastic road and transport infrastructure around our location, situated on the Sheikh Mohammad Bin Zayed Road corridor, and just minutes from the Al Maktoum International Airport and the site of Expo 2020, Dubai Sports City really is the place to be.” Mr. Sajjanhar concluded. DUBAISPORTSCITY’S HANDOVEROFCANAL RESIDENCEWEST’S VENETIANAPARTMENTS MARKET July 2015 Issue -32 /// 34
  33. 33. MARKET July 2015 Issue -32 /// 35
  34. 34. APriceless Collection An art and antiques tour with Tim Boswell, CEO of Ocean View Antiques. By Reshmi Raveendran MARKET INTERIOR TIMES INTERINT T im Boswell is known for his passion for real estate and as the head of Ocean View Real Estate. However, not many people in Dubai are aware of his passion for art and antiques. His company Ocean View Antiques, of which he is the CEO, features a mindboggling collection, which, in fact, is his personal assortment. A simple man with a towering passion for arts and culture, Tim has handpicked each item in his collection. Tim takes pride in talking about his carefully catalogued collection. The amount of time and research that he had put into his collection is incredible. Tim not only gives us a quick tour through history but also gives quick tips and methods to ensure the quality of each item. Welcoming everyone to the gallery is the well sorted Elvis Presley collection, “Everything in this Elvis collection was brought from people who are still close to his daughter,” says Tim, showing one of Elvis’s guitars. The replica of Elvis Presley’s white jumpsuit is one artifact from the Elvis collection thatisnotoriginal,created very precisely to portray the original in Graceland Museum. The original claw wornbyElvisispartofthecollectionand it is one of the most fascinating items besides the portraits of Elvis Presley and Tom Jones. Tim also advises people that it is always better to buy an old cheque rather than autographs. He says the authenticity of autographs is a bit tricky to determine. “In the early days when people died the cheques that they signed were returned to their family, and I always buy them and not autographs,” Tim adds, showing a John Lennon cheque. Many of the collections are bought from Kenneth Rendell, world famous American dealer and expert in historical documents. The vintage themed office of Tim’s is unmistakably adorned with his favourite war hero Lord Nelson, ranging from Nelson’s pattern sword to his portrait. Tim explains his fondness of Lord Nelson. “He started off as a flag boy withhumblebeginningsand worked his way to become the captain of HMS Victory winning the critical Battle of Trafalgar”. The gallery is replete with paintings of Pablo Picasso, William "Anna Ivanovna" by William Verdult Anticipation by Pino ( Limited Edition ) July 2015 Issue -32 /// 36
  35. 35. RIOR TIMESTERIOR TIM MARKET Verdult, Pino Daeni and many more. Ocean View’s extensive collection of artifacts, paintings and memorabilia of personalities like Lord Nelson to Marilyn Monroe and Elvis Presley, ensures every visitor has something to buy and to cherish. “I created this gallery so that people can come and see that an original limited edition artefact does not cost a fortune”, concludes Tim. Glass Picture Commemorating The Death Of Lord Nelson ALouisXVVernisMartinstylecommode Signed Muhammad Ali' Pearl White Everlast JohnLenonSignedCheque July 2015 Issue -32 /// 37
  36. 36. INTERIOR TIMES INTERINT INTERIORS 1. Calligaris- Lounge Mix Sofa - AED23,750 | 2. Calligaris- Hampton Bed AED11,100 & AED11,550 (for Queen & King Size Respectively) | 3. Calligaris- Tosca Chair - AED2,200 | 4. Casablanca- Dosio Mirror- AED2,995.00 | 5. Casablanca- Alhambra Side Table- AED1,195.00 | 6. Casablanca- Nolan Lamp- AED1,295.00 | 7. The One Fusion- Kin Chandelier- AED2,995.00 | 8. The One- Haylee Side Table- AED799.00 | 9. The One- Bretagne Sofa- AED5,495.00 Casablanca: Casablanca welcomes summer with an artistic and dramatic bohemian style. Each piece carefully crafted with convoluted patterns, bringing panache to any living room.(Available at The One) Stylish&Elegant Callingaris: The all new Callingaris range focuses on contemporary designswithgreaterfunctionality.Thoughthedesignisslick and simple, Callingaris did not overlook the comfort factor which is quite evident throughout the collection. (Available at Western Furnitures) 1 2 7 6 5 3 4 July 2015 Issue -32 /// 38
  37. 37. RIOR TIMESTERIOR TIM Zen Interiors: The latest collection of Zen signifies comfort and relaxation in each of its products. The coziness in the design is enhanced by the usage of subtle colours and sleek material. Every piece has a unique ability to blend into any living room with ease and create a perfect harmony (Available at Zen Interiors) Irony Homes: The latest Marine collection of Irony Homes is inspired from corals and pearls. The white and cream combination is sure to bring opulence to your homes this summer.(Available at Irony Homes) 10. Zen Interiors- Coppola Lounge chair- AED 5,400 | 11. Zen Interiors-Darjeeling End Table White- AED 1,560 | 12. Zen Interiors-Madero Coffee Table(New Brown)- AED 2,400 | 13. Irony Homes- Garden Stool - AED532 | 14. Irony Homes- Clear Mirrored Nightstand- AED9,950 8 9 10 13 14 12 11 July 2015 Issue -32 /// 39
  38. 38. W ith UK property prices predicted to rise by 25% over the next five years, non-resident investors looking at purchasing buy-to-let (BTL) properties currently have a great opportunity, agents say. However, potential buyers need to do their homework before taking the plunge. INTERNATIONAL TIMES INTERIN MARKET WHAT INVESTORS SHOULD KNOW For those looking at BTL in the UK, it’s essential to get professional advice on taxation and various fees before making a move. Jon Pitt, of Hamptons International, says in addition to stamp duty and land tax when buying a property, there are also costs incurred when leasing it out. “These include the letting and management fees payable to the agent, which are usually charged as a percentage of the annual rent,” he says. Set-up costs at the start of a tenancy include an inventory on the property, registering the tenant’s deposit and administrative costs. “Non-UK citizens should also be aware that rent is a taxable income in the UK, so there may be a tax liability on the rent. Another upfront cost may be in furnishing the property in order to maximise the return.” Henry Kruczko, of Strutt & Parker’s, said non-domicile (non- resident) investors must do their research before investing. “There are a number of different taxes and expenses for non-doms to consider when buying a BTL property, including stamp duty and solicitors’ fees. There is also the ongoing letting and property management fee should you choose to use an agent to let your investment. Non-doms must also pay tax on any income generated in the UK if their income is over £2000 per RENTS IN THE UK CAN COVER A LOT IN TERMS OF LOAN REPAYMENTS AND RUNNING COSTS. UKINVESTING: Thinking of buying a property to rent out in the UK? Andy van Smeerdijk asks the experts for their advice for foreigners investing in the market. UK July 2015 Issue -32 /// 40
  39. 39. RNATIONALNTERNATION MARKET year.” They also pay capital gains tax when they sell their property, he adds. TOP SUBURBS There’s a strong demand for rental stock in London, says Jon, so when advising on locations to buy, much depends on the investor’s motivation. “If they are purely focused on maximising yields and intending to hold for a long-term investment then we may recommend certain areas in north or southwest London. If the buyer is considering letting for a shorter period before using the property themselves then the area we recommend may be different,” he says. Central London property generally has yields of 2-3.5% while outside Central London is up to 6-7%. Ben Newman, of Savills, says, “Kensington and Chelsea are the top London locations for capital growth while Greenwich is top for income yield.” Henry says Victoria was worth considering due to its prime location. “It is undergoing a dramatic £4b regeneration and is a real hotspot with a number of new projects springing up.” He also recommended Ladbroke Grove near Notting Hill. For buyers with bigger budgets, Knightsbridge and Chelsea were safe bets for capital growth, he adds. OUTSIDE LONDON The rental sector has boomed across the UK over the past five years, says Jon. But when choosing a location outside London, he advises bearing in mind three considerations. 1. Market depth: is there strong enough demand from tenants to rent your property? 2. Local employment: what is driving the local letting market? Are there big employers or universities nearby that will generate tenants? 3. Infrastructure and transport links: a city or town with good links to other areas may generate a stronger return on investment. Outside London, Henry recommends investing in “thriving cities with good employment opportunities, strong transport links and excellent schools and universities. Both Oxford and Cambridge are obvious examples.” For capital growth, Ben rates York, Guilford, Woking, Cambridge, St Albans, Bath, Norwich, Cardiff and Solihull as good locations for BTL investors. “If the motivation is income yield then Peterborough, Newcastle upon Tyne, Leeds, Salford, Reading, Birmingham, Luton, Plymouth and Medway are promising areas.” LONDON HOTSPOTS When looking for property, location, proximity to public transport and presentation are important factors to consider. “We have demand across all of London for rental properties,” Jon says.. “Rather than location it’s probably best to think about what type of property should an investor buy. The majority of demand this year is for one- and two-bedroom apartments close to good transport links. Presentation is also key; flats that attract the highest price will be better presented than anything else on the market.” Henry says rental hotspots included central areas like Belgravia and Chelsea and Fulham, Battersea and Clapham in the southwest. “All have a high rental turnover and are very popular.” Mr Newman said Islington and Canary Wharf are popular with tenants relocating for work due to their proximity to London CBD. “Clapham, Battersea and Wandsworth prove popular for young professionals and families,” he adds. RENTAL INCOMES Rents in the UK can cover a lot in terms of loan repayments and running costs, Jon says. “There are some great buy- to-let mortgages available; depending on how you leverage the borrowing the rent should easily be able to cover repayments and running costs like fees and service charges,” he says. Henry says generally, depending on how much you borrow, the income from a rental covers most of your loan repayments. “The majority of foreign investors purchasing BTL properties in London tend to do so in cash, without a mortgage, so it definitely stacks up for them.” Before buying any BTL property, Ben encourages investors to speak to an ARLA licensed letting agent, saying they “will be able to advise on various matters as well as the expected rental income for a property you are considering purchasing.” UK July 2015 Issue -32 /// 41
  40. 40. INTERNATIONAL TIMES INTERIN MARKET Khaled Shamma, Manager of Elite Estates, Real Estate Broker shares his views on investing in overseas markets such as Cyprus and Philippines with Property Times readers exclusively. by Reshmi Raveendran Khaled Shamma Manager, Elite Estates Cyprus July 2015 Issue -32 /// 42
  41. 41. RNATIONALNTERNATION MARKET Can you please tell us a little about Elite Estates? Elite Estates is a Dubai based real estate company, specializing in both international and local property sectors. Our agents handle buying, selling and leasing of commercial properties all over Dubai and when it comes to international properties, we have a wide selection of properties that are suitable for investors from Dubai. Which countries do you focus when itcomestointernationalproperties? We are focusing on Asia and Europe for now. Indonesia, Philippines and Malaysia are our primary targets in Asia and in Europe, Cyprus and Greece are the two markets that we focus on. WhydoyouthinkCyprus&Philippines appealtoinvestorsinDubai? The beautiful Mediterranean island of Cyprus has always been a favoured investment proposition for investors from Dubai. The pristine beaches and dazzling mountains make Cyprus a well desired tourist destination; this also ensures a high occupancy rate and great return on investments. The government also encourages investors by offering permanent residency and passport programs, making the property buyers eligiblefor a certain investment amount. The discovery of large quantities of oil and gas has contributed well to the already growing economy of the country. Another investment choice is Philippines, and it is not only preferred by the Filipino community, but also by foreign investors who want to diversify their investment portfolio. This is mainly due to the high return on investment ensured by the high demand for housing in the country. The islands of the Philippines are one of Asia’s top tourist destinations with its cultural and natural wonders. The Special Resident Retiree’s Visa is a great option that gives multiple entry privileges with the right to stay permanently or indefinitely in the Philippines. PhilippinesPhilippines July 2015 Issue -32 /// 43
  42. 42. More Details Call 050 62 55 710 RERA # 203 04 4308902 Enlist you Properties for Sale/ Rent / MARINA RESIDENCE 5BHK ATRIUM ENTRY DESCRIPTION 5BHK + Lounge +maid (all enshite ) | Plot 6709 sq.ft., BUA 5400 sq.ft. | Marble & wooden flooring with open living area | Private Swimming PALM JUMEIRAH Skyline View....... SP :- 19,699,999/- DESCRIPTION Marina Residence Building NO. 4 | Penthouse Type H ........ One of it’s kind !!!!!!!!!! Triplex with Private Elevator , 4Floors , Penthouse 6 B/R + maids...BUA - 13,095.47sq.ft . Palm,Atlantis,Burj Al Arab & Marina View .( All from terrace & all around the Penthouse) . SP :- 13,499,999/- Pool + Beach + Beautiful COMMUNITYSPECIALIST
  44. 44. COMMUNITYSPECIALIST JUMEIRAH VILLAGE S P E C I A L I S T MED STYLE  2 B E D S + M A I D S  A R E A S Q F T : : 2690 PLOT: 26745  C O M M U N I T Y V I E W A E D : 3,100,000 MED STYLE INDEPENDENT VILLA  2 B E D S + M A I D S  AREA SQFT: BUA:2690 PLOT: 6800  V I E W : FUTURE CANAL A E D : 2,800,000 T O W N H O U S E  2 B E D S + M A I D + FA M I LY + L U N D R Y  A R E A S Q . F T : 2 9 9 2  C O M M U N I T Y V I E W A E D 2 , 5 0 0 , 0 0 0 A R A B I C S T Y L E  4 B E D S + M A I D  A R E A S Q F T : 3 7 1 8 | HOT OFFER  C O M M U N I T Y V I E W A E D 3,850,000 T O W N H O U S E  2 B E D S + M A I D + FA M I LY + L U N D R Y  A R E A S Q . F T : 2 9 9 2  V I E W : B 2 B A E D 2 , 4 5 0 , 0 0 0 T O W N H O U S E  1 B E D  A R E A S Q . F T : 1 6 3 6  V I E W : PA R K A E D 1 , 5 5 0 , 0 0 0 T O W N H O U S E  1 B E D  A R E A S Q . F T : 1 6 3 6  C O M M U N I T Y V I E W A E D 1 , 4 5 0 , 0 0 0 ARABIC STYLE INDEPENDENT VILLA 2 BEDS+ MAIDS AREA SQ.FT: BUA 2690 PLOT: 8000 | BIG PLOT COMMUNITY V I E W AED 2,900,000 Teddy (Brn: 25252) - Agent Jumeirah Village +971 567295059 Tel +971 4 3396222 |
  46. 46. RERA # 203 04 4308902 Call: AMAN| BRN 6621 | Mob 050 4699 519 THE LAKES SP : AED 16,500,000/- Enlist you Properties for Sale/ Rent / More Details Call 050 62 55 710 L2 Hattan Lakes Villa 36 7 Bedrooms + Maids Room BUA : 7424 sq.ft. | Plot : 11600 sq.ft.. Rented | SP: AED 16,500,000/- ARABIAN RANCHES SP : AED 5,600,000/- Call: OKSANA|BRN 11556| Mob 050 425 2031 Saheel Type 4, 5 +maids Golf Course View | Upgraded | Landscaped Garden Plot 9281 sq.ft. | Private Pool SP: AED 5,600,000/- GENERALLISTINGS
  47. 47. More Details Call 050 62 55 710 RERA # 203 04 4308902 Enlist you Proper es for Sale/ Rent Shell & Core | O ce Unit 14th Floor | BUA : 4,390 sq.ft. Sheikh Zayed Road view SP : AED 6,800,000/- Call : Amar | 050 625 5710 Shell & Core | O ce 2 Unit 11th Floor | Each Unit BUA : 4308 sq.ft. Full Marina View SP : 6,900,000/- Each MARINA PLAZA SPORTS CITY RR1 Duplex, 2B/R, BUA 2,052., Golf Course view, 12th Floor SP : AED 785 / SQ.FT RR1, 2B/R, BUA 1,501.92 sq.ft, Community view, 10th Floor SP : AED 765 / SQ.FT RR1 2B/R, BUA 1,503.34 sq.ft,Golf Course view, 11th Floor SP : AED 775 / SQ.FT 1B/R, Olympic Park 2, 7th Floor,BUA 987 sq.ft., RENTED Golf Course View SP : AED 1,100,000/- Call : Pavi | 050 306 6767 / GENERALLISTINGS