Dubai Investments launches Dh2 billion self-contained community

Dubai Investments (DI) announced the launch of Mirdiff Hills, a Dh2 billion mixed-use development in Dubai, through its real estate arm Dubai Investments Real Estate Company (DIRC).

The latest in a string of mega projects launched by Dubai Investments, Mirdiff Hills is envisioned as a self-contained community comprising residential apartments, corporate offices and retail outlets.

The project, which will have a total built-up area of 2.7 million square feet, comes equipped with all modern amenities such as swimming pool, clubhouse, playschool, internet facility, coffee shop and children's play area, and offers 24-hour security.

Khalid Kalban, Managing Director and CEO of Dubai Investments, said, "DIRC intends to play a leading role in the regional property scene, and with the launch of Mirdiff Hills we take a significant step towards achieving our strategic objectives and consolidating our market presence. With several more prestigious projects in the pipeline, DIRC is set to further expand its portfolio and position itself at the forefront of real estate activity within the UAE."

In all, Mirdiff Hills will feature 680 well-appointed apartments, 380 offices and 129 retail outlets.

Located in the city's Mirdiff area, prominent Dubai-based architects Al Shurooq Engineering Consultants designed the project, while construction leader Al Arif Contracting Company has been appointed the lead contractor. Mirdiff Hills is scheduled for completion in early 2010

Damac gives Dh805m deal to Intermass

Luxury lifestyle provider, Damac Properties, has awarded a Dh805 million contract to Intermass Engineering and Contracting Co, for its Lakeside project at International Media Production Zone (IMPZ).

This project will be completed by December 2010. Lakeside project is Damac Properties' third project in IMPZ - the previous two projects being the Crescent and Lago Vista. All the three projects are being built by Intermass.

"Intermass is one of the leaders in the engineering and construction industry in the UAE today and their appointment as main contractors is due to our faith in the quality of their work and our past experience with them," said Peter Riddoch, chief executive officer of Damac Properties.

Machinery sector enjoys a boom amid rising material costs and labour shortage

The UAE remains the Gulf's largest construction market with some 1,400 active projects worth around $1 trillion.

The majority of these projects are in Dubai and Abu Dhabi, according to Simon Jevons, construction products manager of Sigma PMV, a construction equipment supplier.

The UAE is also home to more than 35 per cent of the heavy construction equipment available worldwide, with 25 per cent of the world's tower cranes all housed in Dubai.

"Consider the size of the UAE, a relatively small 82,880 square kilometres. On this patch of desert land, that could fit inside Iran nearly 20 times, there are 6,000 construction companies," the experts point out.

The country tops the tables globally in terms of per capita expenditure on construction, according to the Business Monitor International.

Jevons said the current conditions will force contractors to focus more on efficient machinery and less on labour.

"Investment in the right type of machinery to undertake labour-intensive processes is an obvious choice for contractors as workforce and material costs increase. Modern construction methods can reduce labour costs by as much as a factor of ten," Jevons explained.

The cost of materials has rocketed over the last year, as cement prices surged 50 per cent and steel prices 70 per cent.

Steel reinforcement bars saw a 35 per cent price hike, now standing somewhere between $1,530 and $1,550 per tonne and cement a 15 per cent rise between May and July this year alone.

These rising material costs are compounded by increasing labour shortages in the UAE. Around 250,000 illegal labourers left the country last year, leaving contractors and developers struggling in the aftermath

IFA launches $2oom project in Thailand

IFA Hotels and Resorts and Thai developer, Raimon Land, on Tuesday announced their launch of $200 million (Dh730 million) project, The Lofts Southshore in Pattaya, Thailand.

With Thailand being a popular destination for Gulf residents, many Middle Eastern investors are expected to invest in Southshore.

Nigel Cornick, chief executive officer of Raimon Land, said, "We are confident The Lofts Southshore will attract plenty of investors given the quick pace that investors are buying new condominiums coming into the market in Pattaya.

"We also believe we'll see a great amount of interest from Middle East investors as we've seen in some of out other Thai properties," Cornick said.

While Pattaya itself is not to everyone's liking, The Lofts Southshore is located on 674,000 square feet of hillside, overlooking Pattaya town. The project is comprises 720 apartments.

Talal Jasem Al Bahar, chairman and managing director of and, stated, "We are very confident in the Thai market and are pleased with the growth of Raimon Land. We will continue supporting the company in order to grow it further and expand it into more of a Southeast Asian real estate developer."

Prices will start at $87,000 per unit. The units range in size from 355 square feet studios, to one, two and three bedroom apartments measuring between 624 and 1,820 square feet.

Baani unveils Dh1.5b Dubai project

Indian developer Baani on Sunday launched its first project in the UAE, valued at Dh1.5 billion in Dubai Maritime City, in conjunction with Gowealthy.com.

The iDubai is located at the Harbour Residences of Dubai Maritime City and it comprises two 50-storey towers, the iTower and Sky Tower, offering residential and 10,000 square feet of retail space and 40,000 square feet of office space.

Baani president Virendra Bhatia said: "The opportunity we saw in Dubai...we felt a kind of scale that is not available in India."

Due to its sleek, slim shape, the iDubai is similar in design to the Flatiron building in New York City.

There is a seven-storey atrium, and five levels of podium parking in each tower. All the apartments will have sea views.

The iTower has seven one and two-bedroom apartments per floor. The one-bedroom units will be between 1,050 sq ft and 1,425 sq ft and the two bedroom units will be between 1,720 sq ft and 1,990 sq ft.

The Sky Tower has three bedroom sky villas, with one villa measuring 3,280 sq ft, on every floor. Each villa has an infinity pool.

Phase two of iDubai will include garden villas ranging between 3,200 sq ft to 4,100 sq ft and eight townhouses.

Dh1.2b Greek-style luxury residences on Marjan Island

Stallion Properties on
Sunday launched the Dh1.2 billion Greek-style development on Marjan
island in Ras Al Khaimah, in line with plans to raise its total
portfolio in the UAE to around Dh4.5 billion.

The Santorini
development will comprise 560 units covering an area of just over
463,000 square feet. The units will consist of Aphrodite townhouses,
Zeus villas, Apollo condos and Artemis luxury condos.

Construction will begin in October this year and is expected to be complete in 2011.

Pearl Dubai to develop Dh2.5b Baccarat projects

In a move to bring a touch of Parisian glamour to the UAE, Pearl Dubai, a consortium of investors developing the Dubai Pearl, has announced the development of a Dh2.5 billion Baccarat Hotel and Residences.

Nestled in the hub of the Dubai Pearl free zone, the Baccarat residences will include over 300,000 square feet of luxury designed by French crystal makers Baccarat.

Private swimming pools, roof gardens, crystal chandeliers and sweeping staircases are all part of the plan.

Baccarat is best known for its tableware, vases and jewellery - and is a firm favourite with royal households around the world.

Al Fara'a unveils Dh1b tower project in Dubai

Al Fara'a Properties, a subsidiary of Al Fara'a Construction, Industrial and Property Group, has announced the launch of Dh1 billion Burj Al Fara'a, a commercial tower located in the commercial business district of Jumeirah Village.

The project is scheduled for completion by December 2011. Al Fara'a Properties has revealed plans to break ground on the 38-storey state-of-the-art commercial tower by December 2008. The new project will have a selection of office spaces.

"We will be working towards the timely delivery of this project, which will be the constructed using the highest industry standards to supply to the booming demand and fittingly represent the philosophy of our organisation," said Natasha Gangaramani, director of Al Fara'a Properties.

Gangaramani said the company's main focus "lies in achieving success in all our endeavours, and we have developed a result-driven strategy based on the rapidly-maturing real estate climate which clearly states the excessive need for commercial spaces to be built in Dubai within the coming years.".

Dh1.29b Project in Dubai

Al Khail Road - a major road parallel to Shaikh Zayed Road, will be turned into a six-lane highway to cope with increasing traffic congestion, said a senior official.

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has approved Dh1.29 billion contracts for Phase 2 and 3 of the Al Khail Road Upgrading Project being undertaken by the Dubai Roads and Transport Authority (RTA).

The project includes widening and upgrading the 15km-long Al Khail Road between the junction of Muscat Road up to the junction of Emirates Road.

The existing road will be widened from four to six lanes, and the existing four roundabouts on the road will be transformed into interchanges.

The project also includes an extension of the Al Khail Road for nine kilometres providing a link between the Emirates Road interchange and the Dubai Bypass Road to serve new communities.

Emirates Float Glass signs contract for second manufacturing facility

Emirates Float Glass
(EFG), a subsidiary of Glass LLC, wholly owned by Dubai Investments,
has signed a Dh575 million contract with Italian engineering firm Ianua
S.p.A for the construction and supervision of its second float glass
manufacturing facility in Abu Dhabi.

The project is being set
up with technological licensing agreement with PPG, USA. The
construction of the new plant, which complements the company’s existing
production unit in the Abu Dhabi Industrial City, will enable Emirates
Float Glass to become the largest single-location float glass
manufacturing facility in the region.

The two factories,
covering a total area of 320,000 square meters, will have a combined
production capacity of 1,200 tons per day.

Tabreed Cooling Plant to be built

Amana Contracting and
Steel Buildings has been awarded a landmark project to construct by
SNC-Lavalin Gulf Contractors for the Tabreed Cooling Plant (Civil,
Architectural & Building Services Works) at Dubai Metro’s Project
at Al Rigga, Union Square, Dubai.

The Dh33.4 million building
is expected to be completed by April 2009. The project is spread across
over 800 square metres of land.

Amana is one of the fast track and turnkey construction companies in the Middle East.

Major projects in Ajman

Awali Real Estate Investment yesterday announced the launch of four towers valued at Dh1.2 billion located within the Dh20 billion Awali City in Ajman.

The 25-storey Mashrabia Residence will be residential twin towers, comprising of 800 apartments. The residence will be around 14,965 square feet on each floor. Mashrabia Residence will also have a swimming pool, health club, retail space and seven levels of parking facilities.

The two Chevron commercial towers will be 25 storeys each and will offer a total of 15,000 square feet of office space on each floor. There will be 304 offices in each tower and also include a health club, gym and retail space.

Prices start at Dh575 per square foot, with an extra Dh3 added per floor for Mashrabia Residence.

In Chevron commercial tower, prices start at Dh650 per square foot with Dh3 added per floor.

Over $5tr Oil Money to be invested in MENA

An estimated $5 trillion to $9 trillion in cumulative GCC oil revenues generated over the coming decade will be invested within the Middle East and North Africa (Mena), experts say.

In 2002, nearly 85 per cent of the Gulf's wealth was invested abroad in financial instruments mostly linked to the US dollar. However, by 2007, this had fallen to 75 per cent due to the rising investment within the Gulf itself, Gary Long, president and chief operating officer of Investcorp, a provider and manager of alternative investment products, said in a statement.

Long predicted that the oil boom will translate into an investable asset pool in excess of $10 trillion by 2020.

A set of trends will determine how this wealth is spent. Long said investments will increasingly take place onshore in Mena and in Asia.

Other trends include "a shift in allocation to alternative investments and more direct investment strategies; the increased sophistication and institutionalisation of the Gulf, including the growing importance of corporate governance; a booming demand for Islamic products and the rapidly growing importance of sovereign wealth funds", an Investcorp statement said.

Oversupply fears hit by Property Market - Dubai

Faith in Dubai's real estate sector could be shaken if the plethora of developments coming on to the market next year outstrips demand and if the government goes back on its promise to issue residency visas.

"I think a bigger worry would be if the government withdrew its promise to grant residency visas for freehold purchasers and their families. It is clear that a significant number of buyers in the market see Dubai as a safeguard against trouble in their home countries and this safety net would be removed if that promise was not honoured," Matthew Green, research director at Cluttons, UAE, told Gulf News.

These comments come after a report was released yesterday by ratings firm Fitch, identifying oversupply and sustaining foreign demand as the major challenges threatening Dubai's real estate sector.

"The main challenge is oversupply. Some projects coming on to the market in 2009 and 2010 will all be coming at one time," Bashar Al Natoor, author of the report, said.

Marwan Bin Galita, chief executive of Dubai's real estate regulatory authority, Rera, said there is currently around Dh6 billion in escrow accounts in over 33 banks. Around 800 developers have now registered over 1,624 projects.

The report notes that if supply does exceed demand, prices of property will fall, reducing revenues, which would then have a negative effect on developers' credit profiles.

Recent figures from Colliers International show that the average price for residential properties in the first quarter was $434 per square foot. While high for Dubai, the prices are still below those in Manhattan ($1,289) and in London ($2,093).

However, on a positive note, the prospect of falling house prices would be a glimmer of light for Dubai residents.

"There is a high probability of late delivery and even project cancellation, due to logistical constraints, which could ultimately result in a better match between supply and demand," said Al Natoor.

An analyst at EFG-Hermes in Dubai, Stefan Schurmann, said although supply is catching up with demand, he doesn't see oversupply as being a major threat to the market.

"There are two things [affecting supply] and that is delays and construction constraint. A lot of projects are coming to the market this year and next. There is some risk as supply is catching up with demand starting next year.

"We know demand is strong. There are still a lot of people coming to the UAE and those people need accommodation," Schurmann said.

"I honestly don't think oversupply is a concern at this point or over the next three years," Green said.

"If you look at the actually deliveries over the past two years, you realise that only, say, 50 per cent of expected product is delivered on time. In 2007, around 30,000 units were handed over compared to a forecast of 60,000 units the year before.

"Delays are just part of the market in Dubai and it may actually help in the long-term by drip-feeding supply instead of dumping a huge glut of new units all at once," Green said.

In terms of office space, the report says that Dubai, with its 1.4 million population, currently has approximately the same amount of office space under construction as Shanghai (population 20 million) and Moscow (population 10.4 million).

Zaya to build Dh3b Abu Dhabi project

Real estate company Zaya has launched a Dh3 billion island project called Nurai comprising 31 beachfront estates and 50 water villas located four kilometres from the Saadiyat Island, its chief executive said on Wednesday.

"It's a luxury property that will be known for its privacy and exclusivity," Nadia Zaal told Gulf News. "Sales began in May this year. We have sold whatever we released. We are looking to release rest of the project in October this year."

The estates and villas are priced between Dh35 million and Dh110 million. There will also be a 60-room resort with room rates ranging from $3,500 to $5,000 per night.

Zaal said the Nurai project will have a construction cycle of two to two-and-a half years. The island can either be reached by a helicopter or by private yachts, although Zaya will provide pickup facilities for Nurai's guests on the Saadiyat Island. Nurai also offers a private helipad and marina with arrivals lounge, a fully-equipped spa and fitness centre, private beaches and water sports facilities.

"We will start levelling and marine works on Nurai from August 1. The construction work will be taken up from September-October this year and the entire project is scheduled for completion by December 15, 2010," said Zaal.

Damac unveils Qatar project

Damac Properties on Monday said it has launched its first commercial tower in Qatar Business Square.

Business Square is an urban development spanning 39,000 square metres and is located in the southern end of Lusail, close to the West Bay area, within the Marina District. The launch comes close on the heels of an announcement made by the developer last month on the opening of their first sales office in Qatar.

Business Square is 20 storeys tall and is meticulously designed to enhance a productive work atmosphere so as to reap good returns. The value of the project exceeds 400 million Qatari riyals.

Nakheel and Auchan announce the creation of HyperCorp LLC

Nakheel, a Dubai World company and one of the world’s largest and most innovative real estate developers, has announced the creation of HyperCorp LLC - a joint venture company with the Auchan group, one of the world’s largest food retailing groups.

A division of Nakheel Retail, HyperCorp LLC aims to develop the Auchan banner across the Gulf with French company Auchan holding 10 per cent of the capital.

The new company plans to open a first wave of five hypermarkets located in Nakheel’s developments across Dubai including Dragon Mart (before the end of 2008), Great Mall Dubai in International City, Palm Jumeirah, Jumeirah Village and Palm Deira.

"We will open 15 hypermarkets and 40 supermarkets across the G.C.C. in the coming 10 years and will expand into other quality developer’s projects as well as our own.”

Al Zorah announces preliminary road work

Al Zorah, the Dh200 billion masterplanned community development in Ajman, announced the commencement of preliminary construction work for its five major roads.

Pre-qualification documents have also been sent to both Marine and Infrastructure works contractors.

Located along Ajman’s pristine beachfront and creek, Al Zorah will be a self-contained City containing varied residences, offices, retail outlets, schools, hospitals and leisure facilities including marinas and a number of 5-star resort hotels.

The project is being developed by Al Zorah Development Company, a joint venture between the Government of Ajman and Solidere International Limited, a leader in urban planning and the development of large scale projects in the Middle East and Mediterranean region.

Gulf construction costs rise 50% in first half

Construction costs in the Gulf increased by 50 per cent in the first half of 2008, in comparison to a 30 per cent increase recorded in 2007, according to Al Mazaya Holdings, a regional real estate developer.

Al Mazaya attributes the rise in costs to inflationary pressures, which were raising the cost of building materials and causing both skilled and unskilled workers to leave the country.

Executive vice-president at Al Mazaya Holding, Salwa Malhas, said the cost of materials had risen by 50 per cent on average and even more for some items.

Al Mazaya attributed the labour shortage to the deportation of thousands of illegal Asian workers "in a bid to solve the demographic imbalance and to put an end to continuous strikes by labourers who are unable to cope with the rising cost of living," a statement said.