5 MIN READIQI Dubai Weekly Recap December 2017 (Week 2)

It is week 2 of the IQI Dubai weekly recap of December 2017 and once again will dive into the real estate market and explore the current situation and opportunities available.

Dubai real estate consultancy launches Dhs5m endowment

Real estate consultancy group Freehold Mediation and Information has launched a Dhs5m ($1.4m) endowment scheme to help small-scale property investors and real estate entrepreneurs find solutions to the difficulties they face.

Through the initiative, the Dubai-based company will bear the cost of 400 integrated studies annually, analysing their clients’ real estate situations and providing advice and consultancy services.

FMI’s move is part of the Global Endowment Vision, which has been adopted by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to revive the endowment as a development tool for communities. By launching the initiative, FMI has received the Dubai Endowment Sign from the Mohammed bin Rashid Global Centre for Endowment Consultancy – one of the Mohammed bin Rashid Global Initiatives.

The Dubai Endowment Sign – bestowed upon companies in recognition of their community contribution – gives private institutions a preference for procurements and contracts with the Dubai government.

Dr Hamad Al Hammadi, secretary general of the Mohammed bin Rashid Global Centre for Endowment Consultancy, said: “With the diversity of entities in the private sector, we are designing a variety of innovative endowments that suit the nature of each entity.”

Source: Gulf business news

Gemini launches construction of Symphony

Gemini Property Developers has started construction of its 29-storey Symphony tower in Business Bay.

This is the second of a series of high-end residential projects planned by developer, after the Splendor in Sobha Hartland. Symphony project has a built-up area of 361,974 square feet and apartments ranging from 430 square feet to 2,900 square feet. The tower will have 455 apartments and is expected to be handed over after May 2020
Source: Gulf News

Dubai real estate market in ‘unique’ cycle, says Core Savills

New report predicts that rents will continue to soften across the emirate

Dubai’s residential real estate market has completed an entire cycle of decline, recovery and decline in the last 10 years, according to a new report from UAE property services firm Core Savills

As other cities continue to gradually recover from the effects of the global financial crisis, Dubai is in a “unique” position, having swiftly recovered between 2011 and 2014, before declining again over the course of 2015, 2016 and 2017.

Core Savills, in its report ‘Impacts: the future of global real estate’, attributes Dubai’s distinct rental wave to significant fiscal stimulus from the government which kick-started growth, fuelled job creation and drove up demand for rental property, as well as the subsequent decrease in oil prices which results in job losses and contraction of domestic demand.

According to Core Savills, the prime residential market which began to soften in late 2014 has more room to contract, as demand for prime residential subsides from ultra-high net worth individuals (UHNIs) and C-suite occupiers, while new offerings in the upper and mid-prime segment dilute demand.

Broaden your idea of the current market, check out our weekly recap of November on IQI Dubai Weekly Recap November 2017 (Week 4)

DIFC aims to lease 90% of units at Dh1bn Gate Avenue before completion, official says

Dubai International Financial Centre (DIFC), the emirate’s financial free zone, aims to lease 90 per cent of units at its Dh1 billion (US$272 million) Gate Avenue retail development before it opens in 2018, to avoid creating a “ghost town”, the official leading the project said.

DIFC is offering incentives and collaborating with tenants to meet their needs in a slow retail market, according to Nabil Al Kindi, chief real estate officer at DIFC.

“The leasing started a long time ago and our aim is to have a good percentage – almost 90 per cent – leased before we open, otherwise it will be a ghost town,” he said.

He declined to provide figures for what percentage of units had been leased to date.

Property owners in Dubai’s retail sector are struggling to fill vacant outlets and are more willing to negotiate rents with existing tents amid increasing supply, according to a third quarter real estate report from broker JLL. Super-regional and regional malls have recorded drops ranging between 3 per cent to 5 per cent in headline rents on a quarterly basis, it added. The large volume of potential new supply will keep retail rents under pressure over the next 12 months, the broker said.

Under DIFC’s original masterplan, Gate Avenue was expected to contain 224 retail units but Mr Al Kindi said some tenants are taking two to three units and knocking walls through to create bigger spaces. As a result, he is targeting 185 units with an average unit size of 2,000 square feet.

The main structure of the development is 95 per cent complete and will be finished in April 2018, Mr Al Kindi added. After that, occupiers will commence the fit-out of their units.

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