Firas Al Msaddi, the chief executive of fäm Properties, says he has seen advertisements offering the "lowest" unit prices in Downtown Dubai.
Firas Al Msaddi, the chief executive of fäm Properties, says he has seen advertisements offering the "lowest" unit prices in Downtown Dubai.

Off-plan boom hurting sellers of completed Dubai homes



Dubai's burgeoning off-plan sales market is having a 'detrimental effect' on prices of completed homes in certain parts of the city, says a new report from Core Savills. 
The consultancy's latest Dubai Residential Market Update states that homeowners in areas such as Downtown Dubai and Dubai Marina are competing for the same pool of investors as developers launching new schemes, with the latter offering "highly competitive and attractive payment plans", often  for properties that are more competitively priced. 
"We remain watchful over growing off-plan sales and lucrative payment plans, which continue to undercut both low- and mid-segment sale prices as well as adding systemic risk to the overall market — something which might require further regulatory strengthening," Core Savills said .
There has been a disparity in price movements across the city, with Downtown Dubai apartments registering a 9 per cent year-on-year decline in values, DIFC properties falling in value by 4 per cent and Discovery Gardens by 2 per cent, the consultancy said .

However, apartments in more affordable areas have enjoyed better returns, with units in Jumeirah Village increasing in value by 6 per cent year-on-year, Dubai Sports City by 3 per cent and Dubailand by 2 per cent.
"The mainstream market displayed disparity, with a few areas marking a rise, while others observed a 'double dip'," said David Godchaux, the chief executive of Core Savills. "The outer areas of Dubailand and Dubai Sports City maintained a relatively stable upward momentum. Discovery Gardens displayed a classic case of double dipping, with newer developments being delivered in proximity to the submarket at very competitive prices."

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Where Dubai villa rents have risen and fallen, Q2 2017

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A similar pattern took place in the villa market, with Jumeirah Park properties down by 5 per cent year-on-year, Jumeirah Islands down 4 per cent and Palm Jumeirah down 3 per cent. Villas in Jumeirah Village increased in value by 4 per cent, The Lakes by 3 per cent and Dubailand by 3 per cent.
Rents have continued to fall across most areas of the city, with Dubailand apartments being the only exception, "possibly due to low entry level rents", Core Savills said. The company said  this hasn't had a negative effect on investor appetite though, as yields in most areas remain above 7.5 per cent for apartments and between 5.5 and 6 per cent for villas, a higher figure than many other forms of investment in the region.
The consultancy expects rents to continue falling throughout the summer, but to stabilise "in core locations" by next year, although rents in secondary areas may soften further.
Firas Al Msaddi, the chief executive of Dubai-based broker fäm Properties, said off-plan sales are not affecting prices of completed homes, because "buyers for ready homes are normally end users or investor looking for revenue-generating property".
He said some of the weakening in prices for completed homes can be attributed to their age, with newer properties commanding a premium over homes that are 10 years old.
"This trend has also been driven by concerns over fire safety, and the knowledge that the new regulations introduced means that newer buildings feature fire-resistant cladding," he said.
"Some of the most popular buildings of previous years, in areas like Jumeirah Beach Residence, Dubai Marina and Business Bay, are now experiencing price stress for this very reason."
Mr Al Msaddi also dismissed the notion that growth in off-plan sales is leading to an oversupply in the market.
"There's still a phobic notion in the market regarding supply and demand," he said.
"While some property sectors may be over-supplied at present, others are under-supplied, especially when you consider what will be ready to live in next year.
 "We also need to consider that over-supplied products today might be under-supplied in the near future in a progressive city like Dubai, which has a proven long-term ability to attract new residents and foreign investments through successful planning and execution."

MATCH INFO

Europa League final

Marseille 0

Atletico Madrid 3
Greizmann (21', 49'), Gabi (89')

Anghami
Started: December 2011
Co-founders: Elie Habib, Eddy Maroun
Based: Beirut and Dubai
Sector: Entertainment
Size: 85 employees
Stage: Series C
Investors: MEVP, du, Mobily, MBC, Samena Capital

The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
  • undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Squid Game season two

Director: Hwang Dong-hyuk 

Stars:  Lee Jung-jae, Wi Ha-joon and Lee Byung-hun

Rating: 4.5/5

The biog

Favourite books: 'Ruth Bader Ginsburg: A Life' by Jane D. Mathews and ‘The Moment of Lift’ by Melinda Gates

Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.

Favourite pastime: travelling and experiencing different cultures across the globe.

Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.

Favourite Movie: Mona Lisa Smile 

Favourite Author: Kahlil Gibran

Favourite Artist: Meryl Streep

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

RESULTS

5pm: Wathba Stallions Cup – Maiden (PA) Dh70,000 (Dirt) 1,400m
Winner: Yas Xmnsor, Sean Kirrane (jockey), Khalifa Al Neyadi (trainer)

5.30pm: Falaj Hazza – Handicap (PA) Dh70,000 (D) 1,600m
Winner: Arim W’Rsan, Dane O’Neill, Jaci Wickham

6pm: Al Basrah – Maiden (PA) Dh70,000 (D) 1,800m
Winner: Kalifano De Ghazal, Abdul Aziz Al Balushi, Helal Al Alawi

6.30pm: Oud Al Touba – Handicap (PA) Dh70,000 (D) 1,800m
Winner: Pharitz Oubai, Sean Kirrane, Ibrahim Al Hadhrami

7pm: Sieh bin Amaar – Conditions (PA) Dh80,000 (D) 1,800m
Winner: Oxord, Richard Mullen, Abdalla Al Hammadi

7.30pm: Jebel Hafeet – Conditions (PA) Dh85,000 (D) 2,000m
Winner: AF Ramz, Sean Kirrane, Khalifa Al Neyadi

8pm: Al Saad – Handicap (TB) Dh70,000 (D) 2,000m
Winner: Sea Skimmer, Gabriele Malune, Kareem Ramadan

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind
Bharatanatyam

A ancient classical dance from the southern Indian state of Tamil Nadu. Intricate footwork and expressions are used to denote spiritual stories and ideas.

The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

Dubai World Cup factbox

Most wins by a trainer: Godolphin’s Saeed bin Suroor(9)

Most wins by a jockey: Jerry Bailey(4)

Most wins by an owner: Godolphin(9)

Most wins by a horse: Godolphin’s Thunder Snow(2)

Asia Cup Qualifier

Final
UAE v Hong Kong

Live on OSN Cricket HD. Coverage starts at 5.30am

KINGDOM%20OF%20THE%20PLANET%20OF%20THE%20APES
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Wes%20Ball%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Owen%20Teague%2C%20Freya%20Allen%2C%20Kevin%20Durand%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3.5%2F5%3C%2Fp%3E%0A