Real estate

Abu Dhabi-based developer Reportage Properties has unveiled major progress achieved in the construction works on six of its projects in Abu Dhabi and Dubai.

The six projects include over 2,300 new residential units, 2,000 of which are in areas in Abu Dhabi, including Masdar City, Al Raha Beach, and Al Maryah Island, Reportage Real Estate Group’s CEO Nasser Al Khamees said in a statement released on Thursday.

About 30% of construction works were completed on Oasis Residence 1 project in Masdar City, which comprises 612 apartments including 310 studios, 256 one-bedroom apartments, 44 two-bedroom, and two apartments of 3 bed-room, Al Khamees revealed.

Moreover, there were also progress in works on Oasis Residence 2 project in Masdar City, which is slated for delivery in the second quarter of 2022. The project incorporates 304 residential units, the top official noted.

As for Reportage’s projects in Dubai, Al Khamees said that the company has recently launched the second phase of Rukan project in Dubailand which comprise 349 villas.

The company is also planning to launch a group of projects in Abu Dhabi and Dubai in the coming period, he added.

The Dubai Water and Electricity Authority (DEWA) has awarded AED 981.96 million contract for the construction of its new headquarters, Al-Shera’a, to a consortium comprising Ghantoot Transport & General Contracting and Ghantoot Gulf Contracting.

Under the contract, the construction of the project will be completed within 30 months, according to a statement released on Saturday by Government of Dubai’s media office.

“By building Al-Shera’a, we establish a global benchmark for buildings that achieve a balance between development and the environment, to protect the right of future generations to live in a clean, healthy and safe environment,” CEO of DEWA Saeed Mohammed Al Tayer said.

DEWA previously awarded an AED 46 million contract for the first phase of construction to Dutco Balfour Beatty, bringing the total cost of construction to more than AED 1 billion.

Al Shera’a will have 15 floors, a basement, and 4 floors of car parking. It will comprise more than 20,000 square metres of photovoltaic solar panels rated to over 4,000 kilowatts.

DEWA’s new headquarters will be directly linked to Jadaf metro station by a bridge, which will encourage the use of public transport for the reduction of traffic and the carbon emissions.

Mubasher: The Kuwaiti property market is expected to recover in the fourth quarter of 2019 after stagnation in the summer, developers told the Kuwait News Agency.

Prices of commercial property are currently stable while the demand is regular, secretary of Kuwait Real-Estate Union Qais Al-Ghanim stated.

However, the property investment sector is unsteady and is expected to stay volatile until early 2020, Al-Ghanim added, noting that the housing sector is seeing growing demand.

Demand on the industrial sector is also growing, director general of Athraa Real-Estate Company Maitham Al-Shakhs revealed.

The top official said that the real estate sector remains a safe haven for entrepreneurs despite regional tensions.

Kuwait’s property trades recorded over KWD 1 billion during the second quarter of 2019, growing 17% quarter-on-quarter and 18% year-on-year, according to a report by Kuwait Finance House.

UAE - Mubasher: The real estate market in Abu Dhabi may be close to bottoming out as the downward corrections it faced in the second quarter of 2019 have slowed in Q3-19, according to Chestertons MENA’s Q3-19 Abu Dhabi market report.

Sales prices and rental rates in the UAE’s capital have seen a marginal slump in Q3-19, with the average apartment sales price falling 1%, the leading international real estate services firm said.

Moreover, the average rental rates for apartments decreased by 1%, while rental rates for villas remained steady, the report highlighted.

Nick Witty, managing director of Chestertons MENA, said: “There is no significant new supply expected to be delivered next year which means there could be a better balance between supply and demand, this, and a series of government initiatives including allowing foreign nationals to own freehold properties, will ultimately lead to a more stable market as we move into 2020.”

Apartment sales prices in the emirate eased by 1% quarter-on-quarter during the three-month period ended 30 September 2019, the report remarked.

Saadiyat Island has not experienced any price changes during the quarter, while apartment sales prices at Al Reem and Al Ghadeer contracted by 1% to AED 965 per square feet and AED 740 per square feet, respectively.

Meanwhile, Al Raha Beach and Al Reef have marked the highest price declines at 2% quarter-on-quarter to AED 1,280 square feet and AED 797 per square feet each.

The villa sales prices remained stable in Q3-19 as compared to the previous quarter as prices at Al Raha Beach Area, Khalifa City, and Al Raha Gardens remained at AED 1,160 per square feet, AED 872 per square feet, and AED 700 per square feet, respectively.

However, Al Reef and Al Ghadeer have witnessed modest declines in terms of villa sales prices, decreasing 1% to AED 620 per square feet and AED 695 per square feet, respectively.

“Overall the capital’s real estate sector is showing signs of positive sentiment with a marked slowdown in sales price reductions. Developers are also recognising the need to be more creative to encourage sales and are now offering flexible payment plans and, in several instances, waiving the registration fee,” Witty explained.

“We have also seen developers selling land plots to boost revenues. This type of purchase is expected to prove popular with Emiratis however, we could also see this pique the interest of other nationalities if positioned correctly,” he added.

At the level of apartment rental rates, it dropped by 1% overall in Q3-19, with tenants being price-conscious amid the growing demand for affordable communities, the report showed.

Accordingly, Corniche Road and Saadiyat Island have experienced the highest rental declines of 4% and 3%, respectively.

On the other hand, the villa market in Abu Dhabi remained unchanged with no obvious movement in rates during the July-September period of 2019 as compared to Q2-19, with only Al Raha Gardens signaling a decline.

“This underscores the demand trend for more affordable rental options as tenants continue to downsize to save costs, particularly in this area,” Witty indicated.

Abu Dhabi - Mubasher: Aldar Investment Properties, a wholly-owned subsidiary of Aldar Properties, announced it has raised a nominal amount of $500 million by placing a fixed rate US dollar-denominated sukuk with a tenor of 10 years.

The transaction represents the first 10-year public sukuk issue by an issuer based in Abu Dhabi, according to a press release.

The sukuk has a coupon rate of 3.875%, which is the lowest rate ever achieved by Aldar, Aldar Investment highlighted.

The offering was over six times oversubscribed, with global investors accounting for 71% of the total transaction allocation, the company noted.

The company will use the net proceeds of the offering to refinance existing debt, Aldar said.

The issuance will help in diversifying the funding base of Aldar Investments as well as expanding Aldar’s overall duration of liabilities.

Talal Al Dhiyebi, CEO of Aldar, commented: “The success of the transaction represents a strong endorsement by the global investment community of the Abu Dhabi economy and of Aldar’s leading position in the regional real estate sector.”

“This landmark deal further strengthens our balance sheet, and is testament to Aldar Investments’ status as one of the most efficient platforms for property ownership in the region,” he added.

The issuer has mandated Dubai Islamic Bank (DIB), First Abu Dhabi Bank (FAB), HSBC, and Standard Chartered Bank as joint global coordinators and joint lead managers for the offering.

Additionally, Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Emirates NBD Capital, and Sharjah Islamic Bank acted as joint lead managers.

Aldar Investments holds and manages a diversified portfolio of high-quality income-generating residential, retail, commercial, and hospitality assets valued at an AED 20 billion.

It is worth noting that Aldar Investments is rated ‘Baa1’ by the credit rating agency Moody’s, the highest credit rating to be assigned for a non-government corporate in the region.

Dubai - Mubasher: Deyaar Development, a leading property developer and real estate service provider in the UAE, on Thursday reported its financial results for the first nine months of 2019.

The Dubai-based developer has recorded a net profit of AED 53 million for the nine-month period ended 30 September of 2019, according to a press release.

The company has generated revenues of AED 483.3 million for the January-September period of 2019, up by 3.6% from AED 466 million in the corresponding period of 2018.

Saeed Al Qatami, CEO of Deyaar, said: “This year has seen Deyaar’s hospitality portfolio well and truly established, with the opening of the Millennium Atria Business Bay and Millennium Al Barsha. These three premium projects will deliver future recurring income.”

“The Afnan District, part of our first integrated urban community, Midtown, is completed, which will mark a momentous occasion as we prepare to welcome residents into this outstanding family-friendly development,” Al Qatami added.

The Afnan District features 659 apartments across seven buildings, ranging from studios through to three-bedroom units, all of which are sold out and getting ready for delivery.

Meanwhile, Dania, the second of Midtown’s six districts, has 579 apartments and is expected to be completed by the end of 2019.

In the first half of 2019, Deyaar had posted a net profit of AED 36.7 million, compared to AED 65.2 million in H1-18.