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Sixty-four per cent of Egyptians believe now is the right time to buy a house, benefiting from the significant drop in prices, said a report.

Up to 90 per cent are willing to pay more for a housing project that offers community facilities, according to a survey conducted by Vantage Communications, one of Egypt’s leading PR consultancies.

Most respondents are reluctant to buy, said that one year from now, or more, will be a better time, the survey said.

The majority of respondents were employed males, ages 25-30, equally divided between single and married, 43 per cent had an income between EGP500-2000 ($82.6-$330.7) whilst the rest had an income exceeding EGP 2000.

Cited by 31 per cent of participants, location topped consumers’ priorities when buying a new home. Price came in second, mentioned by 23 per cent of respondents.

When asked about reasonable prices for buying a home, 43 per cent of respondents considered EGP100,000 – 120,000 a reasonable range, and 29 per cent cited EGP 70,000 – 100,000.

A reasonable monthly installment as set by 44 per cent of participants is EGP400 – 600, 37 per cent mentioned that they are willing to pay EGP600 and above.

When it came to government versus private developers, consumers were equally divided. The preference for government projects was backed by the public’s perception of the government’s credibility and trustworthiness.

On the other hand, consumers’ preference for private sector developers is driven by their perception of its diversified and unique style, as well as better quality services.

Given the choice between two projects of equal price, location and size, 52 per cent of respondents said that access to transportation would be the determining factor. – TradeArabia News Service

Residential sales in Abu Dhabi have witnessed a steep fall across the board, and the rents have continued to drop in the first quarter, however, the prime apartments in the UAE capital were in good demand, said a new report.

This year will prove challenging for the Abu Dhabi residential market as more stock comes onto the market, including the Al Rayanna project which will release 1,800 apartments this year and the Al Reef Downtown which will release 1,500 apartments, said property expert Cluttons in its report.

Several high quality key commercial projects came online in the last half of 2011 including Etihad Tower, Sowwah Square, Capital Gate and Aldar HQ, raising the bar for commercial space in the city, the report said.

Apartment rental values have dropped between 6 and 10 per cent on some projects and will continue to soften throughout 2012.

However, demand for residential property still remains strong and the recent announcements by the government to resume landmark projects, and major companies posting significant profits has had a positive effect on expectation in general and should continue to reenergise the economy throughout the year, it stated.

Abu Dhabi Island has been attracting strong interest as it became more affordable. Apartments on the St Regis development on Saadiyat Island are also proving popular.

The short supply of retail facilities at many of the new residential developments is slowly being addressed at some developments such as Marina Square, but is still an issue for many projects, said Clutton which has enjoyed a dedicated Middle Eastern presence since 1976.

In its Q1 report for Abu Dhabi’s commercial market, Clutton said Abu Dhabi Executive Council had announced the resumption of many previously stalled projects including the long-awaited Louvre and Guggenheim museums on Saadiyat Island, and the new terminal for Abu Dhabi International Airport.

This promises a positive outlook for 2012 as major developers like Aldar and Sorouh post improved profits for 2011. Sorouh ended the year with Dh383 million in profit, up from Dh16.1 million in 2010. Aldar also posted significant profits of Dh642.5 million.

The UAE capital has also seen a shift in the way residential landlords do business, as proactive landlords have started approaching brokers to let their residential properties, the property expert said in its report.

Developers are also retaining brokers and paying agents commissions as an incentive to lease their properties, it added.

Commenting on the office sector scenario, Clutton said this section received a boost from the municipality’s recent announcement that it would no longer issue permits for residential villas to be used for commercial purposes.

This forced many companies to move to purpose built commercial space, with Prime Grade A office space proving the most popular, in particular Sowwah Square which has been successful at attracting both new tenants and those relocating.

Very few landlords are seeking to achieve rents above Dh2,000 per sq m per annum in 2012. New build quality stock is coming to the market at Dh1,400- 1,600 per sq m per annum.

A further fall in commercial rents across most submarkets throughout 2012 is likely, with the exception of Prime Grade A space, bringing rents down to more realistic levels. Greater flexibility and incentives will be important and rents should stabilise by the end of 2012, the report added.-TradeArabia News Service

US-based Freedom Realty Exchange, a leading online real estate auction platform, has put up an entire corporate floor on the world's tallest tower BurjKhalifa in the first ever online real estate auction in Dubai.

Freedom, which is owned and managed by LFC Group of Companies based in California, said BurjKhalifa revels in many accolades; the newest one being home to the first ever online real estate auction in Dubai.

The massive silhouette piercing the Dubai skyline is immediately recognized, widely admired and highly sought after as a prestigious address for global business leaders.

As the first-of-its-kind auction to occur in Dubai, the online event is expected to attract global attention not because it is as progressive and innovative as the city with a reputation of pushing the envelope, but because of its premier location and low opening bid which starts at Dh1.99 million ($541,769).

Commenting on the auction, Bill Lange, the LFC Group of Companies president and CEO, said, 'As far as notable real estate auctions, this one tops them all.'

Recent reports indicate that the real estate market in Dubai is improving, mostly on the residential side, as the commercial and office market remain sluggish with sellers looking to sell quickly yet mitigate any loss in price.

Auctions have proved to be effective where supply is high and demand is low; case in point with many of the corporate suites in the BurjKhalifa.

The international appeal of the BurjKhalifa lends itself perfectly to an online auction as the barrier to entry for interested buyers is removed when the ability to bid is available directly from their own computer, laptop or tablet, regardless of where they are located in the world, remarked Lange.

'Regardless of the notoriety of the BurjKhalifa, the auction will attract serious buyers who understand that this is an once-in-a-lifetime opportunity to purchase an entire corporate floor in the BurjKhalifa at a price they determine through online bidding,' he added.

The company said all bids must be submitted by June 28.

The current owner of an entire corporate floor above the 110th storey has taken the bold and historic step to sell the property through an online auction on the Freedom Realty Exchange, it stated.

In his comments, the anonymous property owner said, “Dubai is a global community and what better way to reach the global buying market than with an online auction where anyone interested in purchasing the property can do so no matter where they are in the world.”

“I’m also very excited that the auction presents a date certain for sale by compelling buyers to get involved now or risk someone else taking advantage of the auction sale,” he added.-TradeArabia News Service

Emaar Properties, builder of the world’s tallest tower Burj Khalifa, will pay a 10 per cent cash dividend for 2011 and said it would strengthen its market leadership in Dubai by launching new projects this year.

Shareholders, at its annula general meeting today, also approved a new board with seven new members.   

Emaar chairman Mohamed Alabbar said Emaar, which is about 30-percent owned by Dubai’s sovereign investment vehicle, would focus on boosting revenues from its global operations next year and enhancing profit from recurring revenues.

The developer has been gradually shifting its focus away from Dubai realty, hard hit in the emirate’s 2008 property collapse, in favour of its retail, hospitality and leisure business. It owns the Dubai Mall, billed as the world’s largest, and operates the Armani-branded hotels.

The United Arab Emirates’ biggest developer by market value had net profit of Dh1.8 billion in 2011, down 27 percent from the previous year.

Addressing the shareholders, Alabbar, said: “The positive economic impact of our trophy assets, such as Burj Khalifa, The Dubai Mall and The Address hotels within Downtown Dubai makes us a catalyst for the economic growth of the city. Having underlined our credentials in superior developments and ensuring best-in-class customer service, we will strengthen our market leadership in Dubai by launching new projects in the city this year.”

With total assets of more than Dh60 billion ($16.35 billion), investment properties and fixed assets of Dh16.4 billion ($4.47 billion) and development property valued at Dh26.2 billion ($7.14 billion), Emaar highlighted its robust fundamentals in 2011. Last year, Emaar recorded a net operating profit of Dh2.058 billion ($560 million) and annual revenues of Dh8.112 billion ($2.209 billion).

The shopping malls, retail and hospitality businesses of Emaar contributed Dh3.36 billion to annual revenues, representing 41 per cent of the company’s annual revenue for 2011. In addition, the contribution of international operations to 2011 annual revenue almost doubled to Dh1.81 billion ($493 million), compared with Dh973 million in 2010.

The Dubai Mall, the flagship development of Emaar, hosted record visitor arrivals of 54 million in 2011, and is billed as the world’s most visited shopping and leisure destination.

Emaar is focused on strengthening its competencies in developing prime real estate assets in the Middle East and North Africa region and the Indian Subcontinent as well as its successful shopping malls and retail and hospitality and leisure businesses, and expanding to key markets globally, he said.

Members of the new board of directors are: Mohamed Alabbar; Hussain Ahmad Dhaen Alqemzi; Ahmed Jamal Jawa; Ahmad Thani Rashed Al Matrooshi; Abdulla Mohammed Saeed Al Ghobash; Jamal Majed Bin Thaniyeh; Arif Obaid Saeed Aldehail; Abdul Rahman Hareb Rashed Al Hareb; Fadhel Abdulbaqi Abulhasan Alali; Marwan Abedin; and Abdulla Saeed Balyoahah. – Reuters and TradeArabia News Service

Naseej, a leading real estate firm committed to affordable housing in Bahrain, said its total income for 2011 rose to BD4.1 million ($10.9 million) from BD3.5 million the previous year.

Announcing the results, chairman Khalid Janahi said, “Naseej remains strongly capitalised, highly liquid and unleveraged. The company’s total expenses increased to BD2.4 million from BD1.2 million the previous year.”

At the end of 2011, total assets had grown to reach BD113.1 million while total equity stood at BD112.6 million, he stated.

During the annual meeting, shareholders approved the election of a new board for the next three years. Janahi was reappointed as the chairman, while Abdulkarim Bucheery was renamed vice-chairman.

Janahi later briefed the shareholders on the company’s two initial property development projects.

First and most significant, was the appointment of Naseej by the government as a partner for the first social and affordable housing public-private-partnership in the Gulf.

This groundbreaking project will develop 4,100 social and affordable housing units over the next three years, said the chairman.

Janahi congratulated the government for achieving this major milestone, through its commitment to provide Bahraini citizens with affordable homes, in partnership with the private sector.

He also praised the government’s efforts to develop the kingdom’s economy.

The Naseej management adopted a strict policy to strengthen the company’s liquidity and minimise operating expenses, chief executive Christopher Sims said.

“These measures proved to be successful, with net profit for 2011 ending higher than originally forecast,” he said.

“We are seeking regional investment opportunities in other GCC countries and in Morocco for the development of affordable housing projects that will provide a positive return for Naseej,” he added.-TradeArabia News Service

Bahrain Property Developers Association (BaPDA) has announced its participation in gulfBID 2012, a leading expo which showcases market leaders from the specialist construction, contracting and related sectors.

BaPDA has consistently demonstrated a keen commitment to effectively support and guide the property development industry, and uphold efforts to rejuvenate it through ethical practices and services.

In its role as a leading non-profit organisation, BaPDA has conducted and participated in conferences and seminars that have facilitated the exchange of information, increasing efficiency through shared experiences and expertise between members of the real estate industry in the region.

It has initiated plans to identify key areas of growth and improve standards to positively influence the industry and the national economy.

'We are committed to working in proactive partnerships with policy-makers, financiers, service providers and industry experts to provide efficient and progressive solutions to help resolve pressing challenges and ensure that the property development sector develops rapidly but in an organised, efficient, and ethical manner,' said BaPDA chairman Aaref Hejres.

'The shortage of affordable housing in the country is one such challenge that we have taken the onus to represent.

'We are happy to be a part of gulfBID at this time when so many large projects are on the anvil and soon to be launched. It provides an ideal platform for our members to benefit from, and for BaPDA to throw the spotlight on our vision for Bahrain,' he added.-TradeArabia News Service

Real estate firms in the GCC looking to attract investment must increase transparency and public disclosure, said an industry expert.

'Real estate companies with highly regulated and transparent corporate governance policies can take a leading edge over competitors on the capital markets, attracting a premium on shares of up to 40 per cent from investors,' remarked Dr Abdullah Alabdulgader, the founding executive director of the GCC Board Director’s Institute.

Alabdulgader was a headline speaker at the Middle East Real Estate Summit held recently alongside Cityscape Abu Dhabi at Abu Dhabi National Exhibition Centre.

A feature of Cityscape Abu Dhabi, the summit brought together the biggest names involved in regional real estate investment, development and financing.

“The financial crisis that hit the markets a few years ago has made clear the growing significance of good corporate governance in capital markets as it plays a key role in achieving strong and sustainable growth,” he stated.

“Good corporate governance has to be perceived as a big opportunity for the real estate sector to improve its public image and to become better managed.  It can be a source of competitive advantage, and therefore play an important role with investors, lenders, and developers,” the expert noted.

As per Dubai Land Department data, GCC residents had invested $3.26 billion in the emirate’s real estate sector last year, while transactions increased by 20 per cent from 2010, to the tune of $38.9 billion.

Alabdulgader pointed out that investor confidence in the region had improved, but also highlighted the importance of the government regulatory framework.

“Investors in the real estate sector are looking for transparency, that goes beyond financial reporting and includes executive compensation, board member’s qualification. Numbers also show that investors are willing to pay a premium on shares of up to 40 per cent for companies with highly regulated corporate governance strategies,” he explained.

Alabdulgader said increased investor confidence was not only reflective of a company’s good corporate governance practices, but also the factors of the regulations’ framework, which is a prerequisite for the development of sustainable capital markets.

“There has been a great improvement in corporate governance in the GCC region in the last few years. I believe that corporate governance in the region is now in its second stage of development. Following the CG codes initial adoption in 2005 we are witnessing greater acceptance of these codes even among non-regulated companies,” he stated.

A panel of more than 35 industry leading speakers currently active in the Middle East shared their collective experience and discussed ways to tackle the major challenges facing the regional real estate sector.-TradeArabia News Service

Kuwait-based Wafra Real Estate has launched a $54 million commercial and residential project inspired by artefacts and elements of the Islamic world at the ongoing Cityscape Abu Dhabi, a major real estate event.

Cityscape Abu Dhabi is concluding tomorrow (April 25) at the Abu Dhabi National Exhibition Centre.

Located on the plush Reem Island, the Wafra project will have courtyards, mashrabiyas and elevated gardens as its key design aspects, to depict the intricacies of Islamic architecture and showcase the underlying Islamic values of privacy and spirit.

“The project is divided into two plots and is spread over a site area of 7,147 sq m with a maximum of seven floors above ground level allocated for office use and 4,150 sq m with 35 floors allocated for residential use,” said Ahmed Al-Subih, Marketing Head, Wafra Real Estate Company.

“The fundamental organising element to most urban planned buildings and projects in the Islamic world was the courtyard; while the importance of a courtyard is to create an open space in the centre, we have attempted to create it as an object surrounded by the building programme.”

Keeping the Islamic ethos in mind, elaborately patterned mashrabiyas will adorn the exterior facade of the buildings, while beautiful elevated gardens will be introduced throughout the buildings to create an important connection between building, man and nature and to provide a cleaner and healthier roof level condition.

“The project is progressing at a rapid pace, with the licensing for the commercial complex complete and the residential license in its final stages, we hope to begin construction by the end of 2012,” added Al-Subih.

Meanwhile Reem Investments, another major Abu Dhabi based developer at this year’s Cityscape Abu Dhabi is launching a new self storage facility in the heart of their emerging Rawdhat community development on Airport Road.

The state of the art purpose-built self storage facility, known as ‘redbox’ will provide short and long term, climate-controlled secure storage options accessible to customers 24 hours a day.  Available spaces range from 25 sq ft to 300 sq ft and customers will only pay for the space they need.

“Reem Investments is always looking at enhancing the lifestyle in our developments. We have identified self storage, a common feature of most developed capital cities, as another special offering to people who live in and around our Rawdhat development,” said Bambang Sugeng Bin Kajairi, chief executive officer at Reem Investments.

“This is the only high quality self storage of its kind on Abu Dhabi island and we are receiving enquiries now from commercial entities and individuals in the capital with a plan to open the facility in the last quarter of 2012.”

Fellow exhibitor Manazel Real Estate also unveiled its latest project at Cityscape Abu Dhabi – a 500-villa complex exclusive to UAE Nationals. Aptly named Dari, or “my home” in the local dialect, the project will help Nationals take advantage of Emirati housing loans and assist local landowners in constructing and maintaining housing structures on their plots.

Manazel’s chairman Mohamed Mahana Al Qubaisi said: “We are proud to launch Dari at Cityscape Abu Dhabi 2012. The inauguration of the project at the exhibition is in step with our dedication to the progress of this great nation and its people. Manazel plans to complete 200 villas in 2012, with another 300 following suit in 2013.”

Cityscape Abu Dhabi returned this year with regular event feature, the Cityscape Awards for Real Estate – Mena, which took place last night, and celebrated the latest cutting-edge projects shaping modern city skylines across the Middle East and Africa.

Among the notable winners last night were Abu Dhabi Health Services Company (Seha) and Skidmore, Owings and Merill which won the Best Sustainable Development Award for the Sheikh Khalifa Medical City, and Aldar Properties which took home the Mixed Use Project Award (future) for its World Trade Center Abu Dhabi development.

Other winners included Sorouh Real Estate for its Sun & Sky Towers development in the Mixed Use Project Award (built) category, and Sumou Real Estate Development Company for its Bawabat Makkah project in the Best Urban Design & Master Planning Award category. – TradeArabia News Service

Abu Dhabi’s Aldar Properties, currently in merger talks with rival Sorouh Real Estate, says it is committed to repay its huge pile of debt and sees further consolidation in the emirate’s battered property market.     

The company, which has been rescued twice by Abu Dhabi with funds amounting to nearly $10 billion, will not need any more funds from the government, chief executive Mohammed al Mubarak, said on the sidelines of a property conference on Sunday.     

“We are committed to all our debts and they will be paid, we are in a healthy financial position,” Mubarak told reporters.     

“We won’t need more (financial) help, we are comfortable on the financing side,” he added.     

The potential merger of struggling Aldar and Sorouh unveiled last month could take some pressure off state investment fund Mubadala, which owns about 35 per cent of Aldar.      

Aldar’s $1.25 billion 10.75 per cent bond, maturing 2014 was bid at 109.5 on Saturday, according to Thomson Reuters data, to yield 5.847 per cent, about 23 basis points tighter since beginning of the month.     

The builder of the Yas Marina Formula One circuit, which was forced to sell key projects to the government including the Ferrari World Theme Park, is generating income from the lease of “many residential and retail projects”, Al Mubarak said.       

“Our model has to be to build more projects,” he added.     

Aldar secured a 4-billion-dirham ($1.1 billion) credit facility from National Bank of Abu Dhabi last week, a deal expected to help the developer manage its liquidity needs.     

State-owned investment fund Mubadala, which holds a near-majority position in Aldar said last month that it transferred a 14 per cent stake in the developer to secure a loan facility from Abu Dhabi Commercial Bank.

Shares of Aldar were up 2.8 per cent at 1.12 dirhams. 

Abu Dhabi is poised for more consolidation as it streamlines state-linked firms in the face of tougher property and economic conditions.     

“Abu Dhabi market is growing – on that front it has to be managed, this could be either through consolidation or other means,” Mubarak said.     

The state-backed tie-up between Aldar and Sorouh to create a company worth some $15 billion in assets comes as prices slide in the emirate’s real estate sector, which has not recovered from the downturn seen after the 2008 global financial crisis.

Property firms have been forced to cancel projects and restructure their huge pile of debt.      

Sorouh, which has assets of 14.1 billion dirhams, has fared better than its bigger rival, supported by a focus on existing project completion and delivery.       

While Dubai’s real estate crisis came as a shock to global markets, the Abu Dhabi reckoning has been a more gradual and incremental process as real-estate values continue to slide. – Reuters

Tharwa Investment Company’s Saudi unit sold 44 plots for over SR220 million ($58.7 million) in the Dhahran Views project at an auction recently.

The company announced today that it had deposited the final payments for the exits of the Shariah-compliant Dhahran real estate portfolio into the clients’ accounts, recording overall returns of 37 per cent, it said.

Mohammed Saud Al-Osaimi, executive vice president, investment banking, said Tharwa Saudi Arabia (subsidiary) held a public auction in December 2011 for the master plan of the Dhahran Views project which is located on King Abdullah Road.

Al-Osaimi said the volume of sales reached more than SR220 million on a total area of about 130,000 sq m. Plots which were put up for sale at the auction included 35 investment plots and 8 commercial plots, in addition to a premium central plot of an estimated area of 40,000 sq m.

Al-Osaimi stressed that exiting from the Dhahran Real Estate portfolio was a great success for the company under the current circumstances, and given the repercussions of the global financial crisis which heavily impacted the real estate sector in all countries of the world.

“Saudi real estate market is the best choice for investment in the region due to the great demand and our experience in the Dhahran Views project is the best evidence of that as this has been the first real estate exiting project carried out by Tharwa which always aspires to achieve the best financial results for our customers,” Al-Osaimi said. – TradeArabia News Service