Nakheel awards $326m contract for Palm Jumeirah mall project

Dubai developer Nakheel on Tuesday announced the award of a contract worth more than AED1.2 billion ($326 million) for the construction of Nakheel Mall, its new 418,000 sq m retail hub to be built on Palm Jumeirah.
The company said a contract has been awarded to UAE firms United Engineering Construction (UNEC) and Actco General Contracting Company to build the new complex, adding that construction is expected to begin soon.
Nakheel Mall, where nearly half of available leasing space is already booked, will be constructed by selected business partners – New Mall Limited – through a Build, Operate and Transfer (BOT) mechanism, the developer said in a statement.
The project will be managed by Nakheel until the transfer date, it added.

Nakheel Mall will have five retail levels with more than 100,000 sq m of shop space, three basement parking levels with 4,000 spaces, 200 shops, two anchor department stores, a nine-screen cinema, medical centre and fitness complex.
There will also be a roof plaza with a host of fine dining restaurants, as well as a selection of food and beverage outlets inside. The project is expected to be completed in 2016.
Alongside Nakheel Mall will be The Palm Tower, Nakheel’s new, five-star, 50-storey hotel and residential complex, for which a separate construction contract will be awarded soon, Nakheel added.
The Palm Tower comprises 504 luxury residences and a 290-room hotel occupying the first 18 floors of the building. There will also be a rooftop restaurant and infinity pool.
Nakheel Mall is one of several new retail projects underway by Nakheel, whose growing retail portfolio also includes The Pointe at Palm Jumeirah, a 136,000 sq m waterfront shopping and dining complex, a mall and night market at Deira Islands and Dragon Mart Mall and Ibn Battuta Mall, both of which are undergoing significant expansion.
Nakheel is also building neighbourhood centres at its Jumeirah Park, Al Furjan, Discovery Gardens and International City communities.

Largest US real estate franchise to launch ops in Dubai

 
IFA Hotels & Resorts (IFA HR), the largest foreign investor on the Palm Jumeirah, announced on Monday that it has been awarded the first Middle East master franchise agreement from Keller Williams, the largest real estate franchise in North America.
As part of the deal, an IFA HR-backed group of business leaders will soon open a Keller Williams office in Dubai, a statement said, with the venture being led Werner Burger, who also serves as CEO of IFA Hotels & Resorts South Africa, regional director Piaras Moriarty Alvarez, and Keller Williams Dubai CEO Zhann Jochinke.
Khaled Esbaitah, CEO, IFA Hotels & Resorts Middle East, said: “With more than 2,000 keys handed over and more than 1,000 units still under development on the Palm, we have an in-depth understanding of the UAE real estate sector.
The franchise agreement for KW Dubai is a joint venture between IFA HR and a South African company that has already successfully introduced Keller Williams into the Northern Kwa-Zulu Natal and the Western Cape.
Keller Williams is the largest real estate franchise in North America with more than 97,000 associates and is based in Austin, Texas. The company began expanding beyond North America two years ago.
Since then, it has awarded master franchise agreements in dozens of countries, including Austria, Germany, Indonesia, South Africa, Switzerland, Turkey, the UK and Vietnam.
“We are constantly looking for the right business leaders to share the Keller Williams mission, vision and culture around the world,” said Chris Heller, president of Keller Williams Worldwide. “We are excited by the opportunity to work with IFA HR and its talented team to help real estate professionals in Dubai grow their business and serve clients at the very highest level.”
Burger added: “KW Dubai is a great strategic fit linking Africa and the Middle East.We’re seeing increased client movement between the regions and anticipate strong cross-selling and marketing opportunities.
“I firmly believe that the Keller Williams model is going to change the world of real estate in the Middle East.”
The longterm goal is to roll out KW franchises across the Middle East through strategic partnerships in key markets, the statement added.
Keller Williams Realty, Inc. is the largest real estate franchise company in North America, with approximately 700 offices around the world.

Now is the time to invest in Dubai property

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, attended on Sunday the final match between Al Ain and Al Ahly Club for the President’s Cup at the Zayed Sports City in Abu Dhabi.

The Malaysian Prime Minister congratulated Sheikh Mohammed and the wise leadership of the UAE and to the people of the country on winning the bid to host the Expo 2020, adding that Dubai represents a melting point where east meets west.

Prime Minister Razak also expressed confidence that his visit will further expand relations between Malaysia and the UAE and open new aspects of cooperation in various industries.

With the two nations forging closer ties, now would be a great time for investors to have a look at the property market in Dubai.

Here are some reasons as to why Dubai would be the perfect place to invest.

Dubai is a tax-free city, with no income or capital gain tax. This makes it extremely attractive for people from all around the world to come and work in Dubai, as well as invest in property.
Foreign investors are attracted to Dubai due to the various Free Zones.
Dubai is easily accessible, having direct flights from all the major cities in the world.
Dubai remains a popular tourism destination with its fabulous shopping malls, five-star hotels, beautiful beaches and numerous attractions.
Dubai is extremely safe, having a very low crime rate – making it a perfect place for families and wealthy individuals.
The climate in Dubai is very pleasant throughout the year, with only 3 months of summer heat.

 

Why does Dubai Real estate remain a good investment opportunity?

1. Property prices are inexpensive in comparison to other similar trading hubs around the world. There is a potential for further growth, as prices have grown by 10% in demanded projects from 2011.

2. Property is a good hedge against inflation. At such times the higher cost of debt servicing can usually be pasted on in additional rent, while the value of the property inflates and its debt is unchanged.

3. Rental income from property is a stable source of income, and while it might fluctuate, is highly unlikely to vanish altogether. Compare that to interest on deposit accounts or dividends on shares. Good investment properties in Dubai offer 8-10% rent return (after deduction of maintenance feed).

4. Real estate always has a residual value, although prices can certainly fall as well as rise. But property values will never fall to zero unlike shares and hedge funds.

5. Property is a kind of hybrid asset with the capital appreciation of a stock but the income producing capacity of a bond.

6. Investors typically have more control over the nature, timing and size of real estate investments. This is partly because they are tangible and easier to understand, and diversification is readily available in the form of different types of property.

7. Dubai property is open to any investor from anywhere in the world, unlike the local stock market. This means greater liquidity and more funds in the marketplace.

8. Demand for property typically picks up during an economic boom or easier mortgage acquisition through Banks. Dubai banks have started lending again, and the number of finance purchases has increased significantly since 2009.

9. Real estate is always an excellent collateral security against loans, and allows debt finance to be secured at the best rates.

10. Property portfolios offer great scope for diversification of risk into different property types, locations and rental levels. This helps to spread the risk of an interruption to income flow.

Buying New Build is Brilliant Value

Just comparing the latest new-build inflation figures and housing market predictions for the next five years, one thing stands out above everything else – buying a new build offers far better value for money just now.
Firstly, new-build property inflation has slowed by half in the last year. It fell from 4% in January 2013 to 2% in January 2014. This means that although there is a gentle rise, new-build prices aren’t running away as fast as the year before, especially for first-time buyers.

This has meant that the big contractors now have the confidence to keep investing in new developments increasing the amount of newly built housing stock.

So new-build properties are becoming better value. This becomes even more evident when you put the figures in the context of the whole housing market.

Secondly, this is happening against the backdrop of a slow but steady rise in average house prices. Early last year the average house for a foreigner hit the  one million Rm mark for the first time ever.
This was almost a 50% increase compared to previous years. The increase is a worrying factor, and the property market looks set to pay the price for acting too hastily.

So if you buy a new-build some time this year, not only will you have saved about 5% on the average house price, but the value of your new house is likely to rise by 12.5 -13% in the next two years.

In short, buying new build right now has never been better value.

Casino Riches Feul Macau Property ‘bubble’ forcing residents elsewhere

           As the worlds gambling capital Macau races to open more than 17000 new hotel rooms over the next three years to keep pace with a flood o Chinese visitors, only about 4000 affordable homes for locals are expected to be built in the same period.

With an average apartment costing more than $500,000, the Chinese special administrative region has emerged as one of the world’s costliest places to buy property, outranking neighbouring Hong Kong, where prices are already among the most expensive in the world.
Prices in Macau are forecast to rise 10-20 percent this year and the situation looks set to worsen as Macau’s new crop of mega resorts open.

For residents like taxi driver Degbao Xian, soaring property prices mean the chance of owning in the former Potuguese colony looks impossible.

“Buying a flat? Not a chance, even if you work for your entire life,’ the 50 year old lamented as he drove past the glitzy front of MGM’s metallic hued casino tower.

Population growth in the tiny territory, one-third the size of Manhattan, is expected to jump 20 percent to 700000 by 2016 according to government estimates.

“Four years ago you could buy a flat with 1 million patacas ($125,100). Now you can’t even buy a praking space,” Said Cherrie Choi, a sales director.

 

Property prices have more than tripled since 2009, according to data from the Macau government. The rise is in tandem with Macau’s gaming revenues, which last year totalled $45billion, nearly three times greater than Las Vegas, Australia and Singapore combined.

Macau’s economy relies on the gaming industry with gaming taxes accounting for more than 80 percent of government revenues.

Macau laws dictate only locals can work as dealers, and the government is under pressure from residents who regularly take to the streets these restrictions remain.

With the majority of properties lying idle once purchased and a lack of affordable housing projects in the pipeline, locals are feeling increasingly marginalized.

How MH370 is Hurting Chinese Property Developers

 

Malaysia’s reputation has taken a bing hit in China since a Malaysia Airlines flight disappeared earlier this month with over150 Chinese passengers on board. A string of missteps by the airline and the Malaysian government in the aftermath of the tragedy has only made matters worse.

 

 

Now the hard feelings are starting to spill over to other areas, including the favourite sector for Chinese investors: property.

Malaysia was once seen as a promising market for Chinese real estate developers.

The Shift in mood has started to worry some big Chinese property developers who have already made a substantial bet on selling homes in Malaysia to mainland Chinese investors.

It will be difficult to tell how quickly Chinese appetite for Malaysian homes could recover. Much depends on how long the search for the missing plane drags on, according to analysts.

 

Article courtesy of the Wall Street Journal China

KL penthouse price hits record RM38 Million

THE price of penthouses in Kuala Lumpur have reached record levels, with the latest unit in the market priced at RM38 million, or about RM3,200 per sq ft (psf).

A few luxury projects have started in Kuala Lumpur, including Banyan Tree Residences, a joint development by Pavilion Kuala Lumpur and Banyan Tree Holdings; and Harrods Hotel & Residences developed by Tradewinds Corp Bhd and Qatar Holding LLC.

Meanwhile, penthouses in Singapore and London are hitting record prices nearly every year.
In Singapore, a staggering 21,108 ft three-storey penthouse is set to not only be the largest-of-its-kind-development in the city state, but also the most expensive. It is priced at S$30 million (RM98.4 million) and will be built on Guocoland Ltd’s Clermont Residence in Tanjong Pagar.

In London, SP Setia Bhd is also planning to price the Phase 2 penthouses at its Battersea project for up to STG30 million (RM1.62 billion) each. There are five penthouses in Phase 1 of the project, each worth more than STG15 million.

Article Courtesy of I-Property.com, Malaysia’s leading property website

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KL Monorail extension to reach Bandar Sunway

 

 

The RM3 billion KL Monorail extension project will boost the order books of construction firms lucky enough to be selected for the mega project, according to CIMB Research. It will also further increase the positive effect of the Mass Rail Transit (MRT) and the KL-Singapore high-speed rail (HSR) to Malaysia’s construction industry.
As such, CIMB Research deems the construction sector to be ‘overweight’ “as government execution on larger-scale projects will be more rapid in the coming months.”

Moreover, the proposed project, which may involve extending the alignment to Bandar Sunway, has piqued the interest of many firms.
According to sources, Malaysian Resources Corp Bhd (MRCB) already filed its proposal for the KL Monorail extension project, while other firms such as IJM Corp are also planning to submit their own proposals.

Despite different proposals, Scomi Engineering will be the one to provide rail cars and systems.

“This news is not surprising as we are aware that proposals and tenders for the KL Monorail extension will progress in the second half. However, stretching the KL Monorail extension to Bandar Sunway is a positive surprise,” noted CIMB Research, adding that the news bodes well for the entire construction sector.

Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my

Malaysian Home Prices to Rise this year……

Leading property developers in Malaysia expect home prices to rise over the next 12 months, based on a report from the Real Estate Housing Developers’ Association Malaysia (REHDA).

The research reveals that three-quarters of REHDA’s members believed that residential prices will surge this year, with 36 percent predicting an increase of between 10 percent and 20 percent, while one in three members expects an increase of five percent to 10 percent.

Still room for growth….

However, business optimism and confidence levels in the country’s property sector are lower compared to six months ago, said REHDA.

“Our members are more cautious towards market conditions due to more compliance requirements imposed on the housing industry, global economic uncertainty and inadequate information and data with regards to on-stream demand and supply,” said Datuk Seri Michael Yam, Association President.

Meanwhile, the proposed new mortgage scheme for the low- and middle-income household bracket can keep the capital “thriving, vibrant and youthful,” said REHDA.

This is a commendable plan. However, its conditions and terms

must be well drafted for it to be a success. Factors like income limits and geographic boundaries must be properly defined.

“Another thing that should be considered is risk management,” noted Yam.

Last Saturday, Prime Minister Datuk Seri Najib Tun Razak announced a special funding scheme to help low- and middle-income families own a house in the capital, which will take effect on 1 March. This w

ill cover units under the National Economic Action Council’s People Housing Programme and the public housing programme of city hall.

Many young Malaysians have stated positive views about the proposed scheme.

“It can improve living standards for those in the city,” said Asyraf Syahir, a university student.

“I hope the scheme’s terms will be favourable because houses in Kuala Lumpur

are expensive. I would like to own a house here someday,” said Christine Leong, IT specialist.