4 MIN READIQI Dubai Weekly Recap 17th to 23rd March 2018

Nearly 85% of Dubai’s property market components are tax free

Dubai’s real estate will feel little impact from the UAE’s recent introduction of VAT, with nearly 85 per cent of the industry’s components tax free, officials said on Tuesday.

The UAE has exempted residential properties and bare land from the 5 per cent tax, introduced in January, while newly-built residential properties that are supplied for the first time within three years of their construction are zero-rated. Unlike exempt goods and services, when businesses have zero-rated services and goods, they can reclaim VAT they have paid on costs from the government.

“Eight-five per cent of components in Dubai’s total real estate sector are not subject to the 5 per cent VAT,” Sultan bin Mejren, director general of Dubai Land Department said in a statement.

“The [VAT] law stipulates that the first supply of residential buildings within three years of completion is subject to the zero per cent tax rate, which means that owners or investors can recover the tax related to the expenses incurred on construction,” said Khalid Al Bustani, director general of the Federal Tax Authority.

“Landlords who rent their properties for residential purposes are not required to register with FTA, if all supplies made by the owner are exempt from tax. In addition, the tax paid on facility management services of commercial buildings can be deducted by the owners on their VAT returns.”

Source: The National

$20m block chain real estate investment fund launched in Dubai

Evarei Management on Wednesday announced it has secured the rights to acquire its first $20 million real estate portfolio in Dubai.

The Evareium portfolio comprises completed buildings totalling almost 700 apartments across two new up-and-coming master communities in Dubai, the company said in a statement.

Evarei said it intends to take a 100 percent interest in the operator of these assets through a leveraged buy-out of the asset owner’s holding company during the second quarter of 2018.

Evareium is a new international investment fund initiative launched in conjunction with UAE-based lead adviser Evarei Management.

It aims to target lucrative real estate asset projects in the UAE and wider Gulf region, and migrate such portfolio once acquired into real estate investment trusts (REITs) that Evareium intends to establish regionally in the future.

Described as a blockchain and smart contract solution for the digitalised real estate investment generation, Evareium allows instant online digitalised investment into managed real estate assets through a ‘tokenised’ fund, which aims to create liquidity by registering on multiple digital exchanges over the course of 2018.

Source: Arabian Business

Emaar, Aldar in Dh30B JV to boost UAE’s tourism ecosystem

The UAE’s two major developers Emaar and Aldar have joined hands to launch massive Dh30 billion worth of iconic and lifestyle projects locally and internationally.

The two developers will also initially jointly develop Emaar Beach Front in Dubai and Saadiyat Grove at Saadiyat Island in Abu Dhabi. This is the largest cross-emirate joint venture announced in the UAE’s real estate sector which will reshape the UAE’s skyline and further strengthen the UAE’s status as a major tourism destination.

Going forward, the two master developers will jointly develop residential, commercial, retail, leisure and entertainment projects. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, attended the announcement of the joint venture.

Set to become the most-coveted address in Abu Dhabi, the mixed-use Saadiyat Grove development will house three museums, 2,000 residential units, two hotels, 400 serviced apartments, and 130,000 sqm of experiential lifestyle and retail space. It is slated to open in 2021.

The second mega project – Emaar Beachfront – in Dubai is a private island which will feature 7,000 residential units with an access to 1.5km private sandy beach. Located between Jumeirah Beach Residence (JBR) and Palm Jumeirah, the project has direct access to Sheikh Zayed Road and Duai Marina.

The project will feature leisure and lifestyle attractions including F&B outlets, beachside play areas, retail pop-ups set along a promenade, and more. Residents of Emaar Beachfront, comprising approximately 7,000 residential units, will have access to a 1.5km private sandy beach as well.

Mohamed Khalifa Al Mubarak, Chairman of Aldar Properties, said the joint venture will expand the country’s portfolio of iconic real estate projects and there is no limit to the development possibilities created by the JV partnership between Aldar and Emaar.

Mohamed Alabbar, Chairman, Emaar Properties, said: “The world-class lifestyle destinations that we develop will add to the civic pride of the nation, and further enhance its appeal as an investment and lifestyle destination. We are drawing on our proven competencies in delivering high quality master-planned communities that have not only redefined lifestyles but also created tremendous economic value for our country.”

Source: Khaleej Times

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