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    2017-06-09 - Dubai property prices continue marginal decline in Q2 says Asteco
    • Apartment rental rates recorded a marginal decline over Q2, with a more pronounced annual drop of 7%. Apartment sales rates also fell, down 3% quarter-on-quarter.
    • Average villa rental and sales rates softened by 1% and 2% respectively. The latest quarterly decline, compounded with previous quarters, resulted in a sales price adjustment of 10%.

    According to the latest report from leading real estate consultancy Asteco, new supply in the apartment, villa and commercial segments continued to place downward pressure on rental rates and sales prices.

    Asteco’s Q2 2017 Dubai data shows average quarterly sales price declines for apartments, villas and offices of approximately 3%, 2% and 2%, respectively. Asteco anticipates that this trend will continue as the market absorbs the expected delivery of 15,000 apartments, 2,900 villas and 2.5 million square foot of leasable office space over the second half of the year. Some of this supply may slip into 2018.

    “Market conditions have served to strengthen the negotiating position of many residential and commercial tenants. Many existing tenants have taken this opportunity to renegotiate their lease terms (on expiry of contracts), or when faced with intransigent landlords, opted to relocate in search of more attractive terms. This has resulted in an increased churn of tenants. The second half 2017 will see the delivery of a significant number of new units / floor space and we anticipate that this new supply will amplify current trends,” said John Stevens, Managing Director, Asteco.

    Apartment sales prices recorded an average q-on-q decline of 3%, in part due to the rising number of affordable project launches and completions with developers offering smaller units at lower price points, together with a greater choice of post-completion payment options. The variation between the high and mid-market segment was minimal, with the former falling, 3% and the latter, 2%.

    DIFC, Jumeirah Beach Residence, Palm Jumeirah, Business Bay and the Greens remained flat while International City and Dubai Marina posted the highest sales price declines at 7%. Further declines were also seen in Jumeirah Village (6%), Discovery Gardens (6%) and Downtown (5%).

    Apartment rental rates softened 2% q-on-q. However, the quarterly fall extended previous declines, resulting in a y-on-y dip of 7%. Total supply for 2017 is anticipated to reach approximately 17,700 units. This compares to 8,750 in 2016. Asteco anticipate that a number of these units will be offered to the market on ‘discounted’ rates to encourage take-up.

    Downtown Dubai recorded the largest y-on-y rental decline at 6%, while Jumeriah Beach Residence and the Greens both softened by 4%. Annually, rental rates within Business Bay, Downtown Dubai, Deira and International City fell by 14%, 12%, 11% and 9%, respectively.

    Villa sales prices recorded a minimal change between Q1 – Q2 2017, falling 2% on average. Interestingly, whilst a number of established communities, such as the Meadows and Springs (with limited supply potential) followed a similar quarterly pattern, annual growth, however, was positive at 9% and 5% respectively.

    Villa sales prices were down 2% on average in Q2 2017. Whilst Dubai Sports City, Jumeirah Park and Palm Jumeirah recorded no change, prices in Arabian Ranches increased by 2%. Jumeirah Village (6%), the Meadows (4%) and the Springs (9%) all witnessed varying degrees of softening. Y-on-Y, demand for villas in established communities, such the Meadows and Springs, generated annual growth of 9% and 5% respectively.

    Villa rental rates declined marginally in the second quarter across all communities except Mirdif and Al Barsha where prices remained stable. Palm Jumeirah and Springs posted the greatest decline at 4% with the highest y-on-y drop occurring in Springs (16%), Jumeirah (14%), Arabian Ranches (13%), Palm Jumeirah (13%), Al Barsha (12%), Mirdif (11%) and Umm Suqeim (10%).

    Stevens commented: “Whilst recent off-plan sales launches have been underpinned by competitive price points and increasingly flexible payment plans, the secondary market, unsurprisingly, remained generally correlated to demand and supply fundamentals.”

    In the commercial market sales prices and rental rates softened by 2% on Q1, pushing the average annual decline to 3%. Demand remained for small, fully-fitted and serviced office space at competitive rates. Another 2.5 million sq ft of leasable space is scheduled to enter the market in H2, significantly lower than the supply introduced in 2016, which totalled 4 million sq ft.

    “We do not expect the market to recover until economic sentiment improves in line with increased government spending, further implementation of diversification strategies and the anticipated gradual rise in oil prices. In the meantime, tenants will be able to take advantage of the additional supply across apartments, villas and offices,” he added.

    List of few publications of this article

    The National

    Zawya

    Dubai Eye 103.8

    Arabianbusiness

    Gulf Daily News

    Gulf Construction

    Emirates Voice

    The National

    2017-06-04 - Five promoted as Asteco reaffirms commitment to staff

    Middle East’s largest real estate services firm underscores the importance of staff recognition and development with the announcement of five new associate director appointments

    Leading UAE real estate services firm Asteco has strengthened its commitment to staff development as five new associate directors are announced.

    The company, which recognises the importance of its employees to the long-term commercial success, has created a Management Selection Committee to review individual promotional prospects along with development requirements which form part of Asteco’s growth strategy which will see the company expand in the GCC while also looking to take their franchise model to Asia and Europe.

    John Stevens, Managing Director, Asteco, said: “This continues to be a challenging time for the real estate industry with companies choosing to downscale and restructure their operations. However, we believe it is the perfect time to invest in our people and to empower them. It is always our desire to develop and promote from within the Asteco family and one of the drivers behind the current leadership development initiative is to support that very aim.”

    With over four decades of market-leading experience, the latest promotions build on the success of Asteco’s senior executive team. Asteco’s Abu Dhabi office has added two Associate Directors to their ranks with Myrna Younes – Asset Management; Ross Kemp – Valuation and Advisory awarded the new status. In Dubai, Shilpa Guruswamy – Sales Management; Ajith Mathew – Information Technology; and Derrick Maguire – Transactional Services have gained Associate Director appointments.

    “2016 marked the first year of Asteco Associate Director appointments and I’m obviously very happy to see another tranche of Asteco employees being recognised for their outstanding services to the brand. Each one of them has displayed a commitment and dedication to their role and is thoroughly deserving of this recognition,” said Stevens.

    The new associate directors will have greater autonomy over budgets and will act as the figurehead within their respective departments while also being responsible for reporting to the Asteco board.

    Stevens added: “Getting on the first rung of the executive ladder is challenging and requires individuals to demonstrate they have the relevant experience and ability to work independently, showing initiative to lead and manage a team.

    “These appointments show that there is room to progress and advance your career with Asteco and we will reward staff accordingly.”

    In 2016 Asteco launched a unique training and development facility for the UAE market and its growing community of internationally licensed brand franchisees, the Asteco Academy.

    Headed by leading organisational practitioner and Head of Training & Development, Brian Weaver, the academy is an international standard facility for the region and offers franchisees access to Asteco expertise with the aim of aligning corporate deliverables with franchisee business goals, offering Continued Professional Development (CPD) opportunities to help franchises maintain a competitive edge; and providing long-term in-house support and advice as franchisees build their businesses.

    Earlier this year Asteco’s leading franchisees were recognised for their outstanding contribution to the company’s sales and leasing figures which now top AED13 billion and 16 million square foot in leasing.

    The top accolade, Best Franchise, was won by the Asteco Savana Office in Dubai, led by Hashim Ahmed. Criteria included the number of sales completed, residential and office leasing success rate and growth of the franchise.

    2017-05-14 - Asteco franchisees contribute 75% annual increase in sales
    • Leading real estate company Asteco celebrates achievements of 14 franchises in the region as part of the company’s inaugural franchise awards;
    • 75% increase in sales and 50% rise in leasing attributed to the franchisees

    Asteco, the Middle East’s largest independent full service real estate company, has underscored the success of its licensing division with the inaugural Asteco Franchise Awards, which took place at Towers Rotana in Dubai recently.

    There was a total of five awards, each recognising the outstanding contribution each of the franchisees made to Asteco’s sales and leasing figures, which currently sit at over AED13 billion in sales and nearly 16 million square foot in leasing.

    The top accolade, Best Franchise, was won by the Asteco Savana Office in Dubai, led by Hashim Ahmed. Criteria included the number of sales completed, residential and office leasing success rate and growth of the franchise.

    “Hashim and his team always exceed their targets,” said John Stevens, Managing Director, Asteco. “He is never afraid to reinvest his profits into his business, which culminated in a move from Marina Plaza to Emaar Business Park, marking our first franchisee with a retail unit. As a result, the walk-in trade is excellent. We are confident that it is going to be another great year for Hashim and his first-class team.”

    Asteco is the only locally established, full service real estate business in the region offering a bespoke franchise opportunity. As the largest real estate franchise company in the Middle East, Asteco currently has 14 franchises in Dubai, Jordan and Saudi Arabia, which have generated a 75% year-on-year increase in sales and a 50% rise in leasing. Combined, the franchisees employ 141 brokers and 20 administration staff, while the company also has a training academy as part of its value add to the franchises.

    Asteco’s Licensing Services division was launched in 2014 to offer franchise opportunities to qualifying real estate companies, independent realtors as well as regional entrepreneurs looking to diversify their existing businesses, or launch a start-up in the property sector.

    All franchisees can leverage Asteco’s 30-year brand pedigree and its successful business model. It offers tailored set-up support services, bespoke operating areas, regional brand visibility and access to an enviable sales and leasing portfolio, which currently stands at more than AED2.5 billion worth of property for sale and 1.5 million square feet of leasable space.

    Asteco’s franchise model also provides partners with a high value referrals service, access to Asteco’s market research and quarterly reports, dedicated intranet with a comprehensive range of resources, regular communication and updates, as well as use of the industry-leading real estate software and CRM platform.

    “All our franchisees have a wealth of experience in real estate and a business pedigree that is in sync with our own approach to market development,” said Stevens. “Gaining access to the Asteco brand offers unrivalled credibility built over three decades and stakeholders can rest assured that we carry out the most stringent due diligence before offering a franchise. This ensures that franchisees will deliver the same exacting levels of service that has been the foundation of our business success.”

    Other winners on the day included:

    Best Sales Broker – Hussein Al-Safadi from Asteco Astra Plaza, the company’s franchisee in Jordan. Hussein sold more than 150 units in 2016 in tough market conditions.

    The Best Leasing Broker - Muhammad Amjad from the Asteco Archers Office, Dubai.

    Best Mystery Shop - Asteco Haxxon Office, Dubai managed by Muhammad Ali.

    Most Compliant Office - Asteco Archers Office, Dubai managed by Ramzan Shahid

    “We would like to congratulate all the winners,” said Stevens. “Our franchisees are passionate, service-oriented and commercially astute. We are looking forward to working with them in 2017 and beyond to grow their own businesses with our brand presence in what is one of the most dynamic, challenging and fastest developing markets in the world.”

    2017-05-01 - Sales prices in Dubai continue to fluctuate says Asteco report
    • Year-on-year figures reveal 8% average decline in apartment and villa rentals. Average sales prices fall by 3% in apartments while villas remained stable;
    • Average apartment and villa rents drop 3% quarter-on-quarter - apartment and villa sales prices soften by 1% q-on-q

    According to the latest Q1 2017 Dubai market report from leading real estate consultancy Asteco, tenants remained budget-conscious, taking advantage of additional supply and competitive rates to relocate to new properties or negotiate existing contracts, placing downward pressure on rental rates.

    In contrast, sales prices in communities with good infrastructure, amenities and limited future supply potential recorded marginal increases. Villa sales prices in The Meadows and The Springs, for example, were up 8% and 5% respectively from Q1 2016.

    “From a sales perspective, apartments witnessed declines across the board. However, it was the upper-end of the market that felt the impact most acutely, with both Downtown Dubai and Dubai Marina seeing year-on-year decreases of 7%. The villa sales market fared better as some of the established communities with good transport links and within proximity to DMCC and Media City, and those with good amenities including shops and restaurants, witnessed increased demand resulting in price growth,” said John Stevens, Managing Director, Asteco.

    Overall, Asteco’s research identified a 1% quarter-on-quarter (q-on-q) decline in apartment sales prices in the first 3 months of the year. Since Q1 2016, the market recorded a drop of 3% in rates. “We have, however, noted increased transaction activity in Q1 2017 compared to the same period last year. Developers continued to launch off-plan properties at competitive prices and payment plans indicating healthy investor demand and further promoting movement within this sector,” added Stevens.

    Apartments on Palm Jumeirah witnessed no change annually, whilst q-on-q sales declines of 3% resulted in prices to drop to between AED1,000 and AED 2,600 per sqft. In Jumeirah Lakes Towers sales prices increased by 5% annually with no movement q-on-q to between AED800 and AED1,700 per sqft.

    In the affordable segment, Dubai Sports City witnessed an annual increase of 6% and a quarterly decline of 2% - units were available from AED700 to AED1,100 per sqft.

    Villa sales prices recorded a q-on-q decline of 1%, while annually the figures saw little movement. Arabian Ranches and Dubai Sports City noted a softening of 4% annually to between AED950 – AED1,600 per sqft and AED850 – AED1,150 per sqft, respectively. This was attributed to an increase in supply in surrounding neighbourhoods providing greater opportunities at lower prices.

    Apartment rental rates declined 3% on average q-on-q and 8% over the year. High-end properties were most affected with Palm Jumeirah witnessing price decreases of 7% q-on-q and 14% annually. In DIFC there was no movement for quarterly prices, however, annually the figure dropped by 9%. Mid-market apartments followed suit, witnessing quarterly and annual declines of 3% and 12% in Business Bay and 2% and 4% in Jumeirah Lakes Towers.

    Discovery Gardens was the only area to notch an increase in the affordable sector with an annual rise of 3%.

    “A combination of new supply and tenants taking advantage of competitive rates has resulted in landlords offering more flexible terms either by increasing the number of cheques or, in some instances, offering rent free periods. This has been compounded by the addition of 3,600 apartments in Q1, which is expected to top 17,000 by the end of the year, thus putting further pressure on the rental market,” said Stevens.

    In the villa rental market the trend was similar to apartments with declines of 3% q-on-q and 8% annually as tenants took advantage of increased availability of competitively priced properties.

    Arabian Ranches recorded an annual decline of 14% and a q-on-q drop of 9% with a three-bedroom available from AED125,000 to AED200,000. In Jumeirah, an annual decrease of 15% and a 7% q-on-q drop, resulted in rents for a three-bedroom to range from AED150,000 to AED230,000. The Lakes saw very little price movement with a nominal decline of 1% q-on-q and rents for a three-bedroom ranging from AED170,000 to AED250,000.

    Rental rates are expected to decline further as 4,000 villas are scheduled to be delivered by the end of the year, which are likely to be leased below prevailing rates to improve take-up.

    “Sales prices in many communities are fluctuating and are not expected to stabilise until rental rates bottom out, which is not expected to happen until later this year or early 2018,” added Stevens.

    In the commercial sector, rents and sales both fell by 2% over the quarter. The bulk of business enquiries and transactions were for smaller sized units. However, with current oversupply (further delivery of 2.7 million sqft is expected by the end of 2017), increased pressure has been placed on annual sales and rentals resulting in rates to soften by 3% and 6% respectively.

    List of few publications of this article

    Gulf Business

    Dubai Again News

    What's On

    Dubai Again News

    2017-04-19 - Asteco signs first master franchise in Saudi Arabia

    Saudi Arabia based Ma’ather for Real Estate Management LLC invests in Asteco’s proven franchise brand, the first in the country

    Asteco, the Middle East’s largest independent full-service real estate company, has added its first franchise in Saudi Arabia to its growing integrated network, taking the tally of franchises to 15 in the GCC.

    Following the signing of the agreement with Asteco’s licensing division, Ma’ather for Real Estate Management LLC, the main real estate division of the Rabiah & Nasser Group (RANCO), a leader in the Saudi construction, industrial and real estate industry, will now operate under the Asteco brand. The signing ceremony, which took place yesterday at Cityscape Abu Dhabi, was attended by Asteco Managing Director, John Stevens; Asteco Director of Licensing, Sean McCauley; Eng. Raed Al Rabiah, Managing Director and Ahmed Al Bader, General Manager of Ma’ather for Real Estate Management LLC.

    Commenting on the announcement, Stevens said: “RANCO has built a solid reputation over the last 60 years as reliable and trustworthy real estate company, with credentials second-to-none. Their extensive knowledge and business acumen makes them a natural fit for the Asteco franchise model and I look forward to working with the team on the international and domestic real estate Saudi market.”

    RANCO is recognised as one of the key driving forces behind Saudi Arabia’s positive urban development. Projects developed include residential and compound properties in Riyadh and Al Khobar, as well as commercial office complexes in Riyadh, Al Khobar and Jeddah.

    Several government initiatives put in place to increase housing supply in Saudi Arabia through partnerships with the private sector in 2016 have resulted in a confident outlook for 2017, offsetting the reduction in both government and consumer spending. The introduction of Real Estate Investments Funds (REITs) is also expected to have a positive impact on the real estate industry in the Kingdom.

    “This new franchise subsidiary is in line with our group vision in residential development and complements our real estate property management portfolio,” said Eng. Raed Al Rabiah, Managing Director, Ma’ather for Real Estate Management LLC. “The backing of a real estate firm of Asteco’s standing and its plus 30 years of experience will undoubtedly play a major role in supporting us during the launch phase and beyond. The gravitas of the Asteco brand combined with our local knowledge and expertise means we can look forward to business growth and success in the future.”

    Asteco’s franchise model provides partners with a high value referrals service, access to Asteco’s market research and quarterly reports, dedicated intranet with a comprehensive range of resources, regular communication and updates, as well as use of the industry-leading real estate software and CRM platform.

    As the only locally established, full service real estate business in the region offering a bespoke franchise opportunity, Asteco provides independent market analysis, design development consultancy and valuation services, sales and leasing services, as well as asset and property management services.

    Its licencing division, established in 2014, was created specially to offer franchise opportunities to qualifying real estate companies, independent realtors and regional entrepreneurs looking to diversify their existing businesses, or launch a start-up in the property sector.

    Currently, Asteco has 14 franchises across four different countries in the GCC, including Livington Properties, Asset Value Real Estate Brokerage and Savana Real Estate in Dubai, as well as Bahrain-based RightWay. All franchisees enjoy 100% of the commission and benefit from more than three decades of real estate experience earned by Asteco. Franchisees can also capitalise on tailored set-up support services, bespoke operating areas and regional brand visibility while tapping into an enviable sales and leasing portfolio.

    List of few publications of this article

    Khaleej Times

    Saudi Gazette

    Al Watan

    zawya.com

    syyaha.com

    Saudi Arabia PR

    MENA Herald

    gulfprojects.me

    Gulf Construction

    2017-04-17 - Popular developments on Saadiyat Island buck the trend says Asteco report

    According to the latest Q1 2017 Abu Dhabi market report from leading real estate consultancy Asteco, a combination of reduced public spending, business contraction, a reduction in staff benefits and the continued delivery of new housing units, have all placed downward pressure on rental rates and sales prices across Abu Dhabi's real estate sectors.

    Nonetheless, existing and off-plan developments with unique selling points in desirable locations such as Saadiyat Island, have bucked the trend and recorded particularly healthy demand.

    Similarly, rental rates within this master community have proven more resilient due to the limited supply and general appeal of the area.

    Overall, Asteco research identified a 3% quarter-on-quarter (q-on-q) decline in apartment rental rates in Q1 this year. Over the last 12 months, the market recorded a drop of 8% in rates.

    "In part this was a consequence of tenants negotiating favourable leasing conditions, as budgets were reined in, due to economic uncertainty and overall employment prospects," said John Stevens, Managing Director, Asteco.

    Villa rental rates put up a slightly better performance with declines limited to 5% over the last 12 months and a marginal 2% for the first quarter - attributed to low demand and limited availability of quality units.

    However, villas in some communities, such as Al Raha Gardens and lower end units on Abu Dhabi Island, recorded decreases of up to 12%.

    "The low oil price continues to weigh heavily on the capital's property market, as the government continues to cut spending, at a time when a significant amount of new supply is ready to be delivered. This quarter has underscored the existing trend that 2017 will be challenging," added Stevens.

    "We expect to see further corrections, but with a marked increase in demand for good quality and competitively priced products as the appetite for older stock fades. Indeed, we've already witnessed off-plan, well-priced villas with flexible payment plans, such as TDIC's Lagoons project, generating interest from potential investors."

    Apartment sales prices decreased by 2% q-on-q and 4% since Q1 2016. Al Muneera, Sun & Sky Towers, The Gate and Saadiyat Beach Residences all experienced declines of AED200 per ft2 to AED1,350 per ft2, AED1,300 per ft2, AED1,250 per ft2 and AED1,400 per ft2, respectively.

    Villa sales prices witnessed a quarter-on-quarter decline of 2%, while annually the figures decreased by 5%. Raha Gardens had a quarterly drop of 2%, with a two-bedroom villa averaging AED2.6 million. Al Reef prices softened by 3%, a two-bedroom villa sold for AED1.85 million and Saadiyat Beach Villas, where prices dropped by just 1%, were available for AED5.75 million for a two-bedroom.

    New supply is also steering performance with 2,700 new apartments delivered over the last 15 months, many leased and sold below prevailing rates to facilitate a higher take-up.

    In Q1, 1,350 new apartments and 150 new villas were completed across Abu Dhabi. By the end of 2017, it is expected developers in the Emirate will have delivered another 2,550 new apartments and 900 new villas.

    Stevens said: "The anticipated delivery of new projects, in the short to medium term, is expected to increase investment opportunities, which in turn will have a positive effect on transaction volume."

    In the commercial sector, rents fell 10% compared with Q1 2016 and 2% over the quarter.

    In Q1 2017, rental rates in older Grade B buildings ranged from AED650 to AED930 per m2 per annum, whilst fitted space in new prime buildings achieved AED1,800 per m2 per annum on average.

    By year end, it is expected that 180,000 sqm of new office space will be delivered across several high-profile office towers, including the ADIB Headquarters building on Airport Road, as well as Leaf Tower and Omega Tower, both located on Reem Island.

    The office sales market remained restricted by the limited number of units available for sale.

    Stevens commented: "We can attribute the decline in the office market to limited new take-up and virtually no tenants upgrading to larger units or better locations. Tenants are generally looking for smaller units with parking, which resulted in owners of larger office areas to sub-divide space to meet the demand for affordable offices for Small and Medium size Enterprises (SMEs)."

    List of few publications of this article

    Khaleej Times

    Gulf News

    The National

    Property Weekly

    Al Manara

    zawya.com

    Al Khaleej

    2017-03-07 - Government initiatives fuel trend in Jordan’s real estate market

    • Smaller units offering better value for money pique the interest of buyers
    • Government tax breaks and competitive offers from developers resulted in a stable sales market despite oversupply
    • Apartment rental rates in Amman recorded a marginal increase of 1%, on average, over Q4 2016, with year-on-year growth standing at 3%

    Prospective buyers in Jordan are taking a cautious approach to investing by seeking out smaller units offering the best value for money, according to the latest report from leading real estate consultancy Asteco.

    To motivate buyers, both the government and developers have put several incentives in place to alleviate the oversupply the market witnessed in 2016. In line with these efforts, prices have remained stable throughout the year and over the quarter, but resulted in a reduction in transaction levels, according to the Asteco Jordan Real Estate Q4 2016 report.

    “The oversupply in the residential sales market has put pressure on developers to be more competitive to sell their properties while the government has introduced new tax saving measures to help stimulate the market,” said John Stevens, Managing Director, Asteco.

    “The new initiative, which waives the registration fee for the first 150 square metres of any home smaller than 180 square metres is feeding the trend for buyers looking for smaller units that are competitively priced – especially in the densely-populated capital city, Amman,” added Stevens.

    Sales prices for apartments remained stable across the board during 2016, standing at an average of JOD1,375 (AED7,128) per square metre for units in Abdoun and 4th Circle, JOD1,250 (AED6,480) in Um-Othainah, JOD1,200 (AED6,220) in Der Ghabar, JOD1,188 (AED6,158) in Sweifieh and JOD1,100 (AED5,702) in Al-Rabiah.

    The International Monetary Fund has predicted that Jordan’s economy will gradually gather pace over the next few years, with GDP expected to reach 3.3% in 2017 and 4% by 2019 – a momentum that could provide a welcome boost for property sales.

    One upcoming project in the spotlight is Al Abdalli, a mixed-use development in Amman that will comprise residential, office, retail and hotel components over a total built-up area of two million square metres.

    “Although the market is going through a sluggish phase and transaction levels have reduced, sales are still taking place,” said Stevens. “It is hoped that the climate will improve in 2017 as the economy continues to grow and new developments come online to deepen the breadth of choice.”

    The Asteco report also highlights how apartment rental rates in Amman recorded a marginal increase of 1%, on average, over Q4 2016, with year-on-year growth standing at 3%.

    “Abdoun and Der Ghabar areas saw the most significant increase of 6% due to the high level of demand for good quality units,” said Stevens.

    A three-bedroomed apartment in Abdoun is available for JOD19,250 (AED99,788) and JOD17,750 (AED92,012) in 4th Circle whilst the most affordable options are found in Al-Rabiah for JOD10,750 (AED55,726). Those seeking a smaller space can rent a one-bedroomed apartment in Sweifieh for JOD4,250 (AED22,031) or JOD5,250 (AED27,219) in Der Ghabar.

    The office market saw limited activity over the last quarter and rental rates declined by 2%, on average. Areas such as Wadi Saqra and Shemeisani saw the biggest decline of 7% and 3%, respectively, as landlords reduced rental rates to attract tenants and improve occupancy levels.

    List of few publications of this article

    Al Bawaba

    MENA Herald

    Dotemirates.com

    Business Pulse

    Taktical Realty

    Zawya.com

    2017-02-23 - Dubai’s affordable housing subdues demand in the Northern Emirates
    • Average apartment rents in Sharjah, Ajman and RAK drop by 3%, 2% and 1% respectively year-on-year
    • Apartment rents in master planned communities experience 2% average annual increase

    The increase in affordable housing in Dubai is having a negative effect on rents in the Northern Emirates, according to the latest report from real estate consultancy Asteco.

    The Northern Emirates Real Estate Report Q4 2016 revealed average rent levels declined marginally during Q4 2016 in the Northern Emirates, with Sharjah, Ajman and Fujairah witnessing decreases of 1% on average.

    John Stevens, Managing Director, Asteco, said: “We could see further declines in 2017 if the supply of affordable property, continues to stifle demand in the Northern Emirates. Sharjah and Ajman are expected to experience more downward pressure on rates in comparison to Ras Al Khaimah and Umm Al Quwain.”

    Over the year (2016), apartment rents in Sharjah fell 3%, on average, with a typical one-bedroom apartment renting for around AED31,000 per annum. This was not helped by the Sharjah Municipality’s decision in Q3 2016, to increase the rent attestation fee from 2% to 4% of the annual rent, which resulted in a reduced number of tenant relocations and upgrades within the Emirate.

    “However, to arrest the slide landlords in Sharjah have offered rent-free periods and more flexible payment plans (six to 12 cheques) in order to retain existing tenants and attract new ones. For example, the newly completed Sahara Tower offered rent-free periods in order to increase occupancy levels,” added Stevens.

    Apartment rates in Ras Al Khaimah fell, on average, by a nominal 1% year-on-year, although there was a 2% increase in master planned communities such as Al Hamra Village and Mina Al Arab, which outperformed mature apartment units due to enhanced product offerings and facilities.

    On a cautionary note, Stevens said: “With the handover of more than 1,400 apartment units on Al Marjan Island, rental rates are expected to decline as better quality options will become available to tenants.”

    Apartment rents in Ajman, on average, fell by 2% year-on-year, with a typical one-bedroom property now renting at AED31,000 per annum. Rents in Umm Al Quwain were unchanged year-on-year from 2015.

    Meanwhile, the commercial sector in Sharjah remained flat throughout 2016 due to a lack of demand for office space. Rental rates in the newly handed over Al Marzouqi Tower decreased from AED65 per ft2 to AED55 per ft2. This was in addition to rent-free periods of up to three months offered by the landlord to encourage take-up.

    Stevens said: “The Sharjah commercial market is expected to remain stable or, in some areas, show marginal rate declines during 2017 due to new supply combined with lacklustre demand for office space.

    “On the other hand, the retail market in Sharjah and Ajman is expected to witness improvements with the handover of new supply such as Ajman City Centre, various retail outlets at Al Majaz Waterfront, and Zero 6 Mall.”

    List of few publications of this article

    Gulf News

    Khaleej Times

    Al Watan - UAE

    Al Ittihad

    Al Wahda

    Khaleej Times - Online

    Big News Network

    Breaking Property News

    Emarat Al Youm - website

    Middle East Today - Arabic

    GulfEyes.net

    Dotemirates.com

    Anayemeny.net

    Zawya.com - English

    Gulf News

    UAEnewsapp.com - English

    Gulfbase.com - English

    Arabianbusiness.com - English

    Eye of Riyadh - english

    Eye of Dubai - English

    Company News Egypt (CNE)

    Africa-news.info

    2017-02-15 - Abu Dhabi Tenants will move for better value in 2017

    Abu Dhabi Tenants will move for better value in 2017, says latest Asteco report

    • New supply and continued macroeconomic uncertainty to place further pressures on rates
    • Apartment rents dropped by 7% on average year-on-year, while villas saw an average 5% decline
    • Average sale prices for both apartments and villas were down 4% for the year

    Average rental rates in Abu Dhabi for apartments and villas fell by 7% and 5% respectively during 2016 and are expected to soften further in 2017, according to the latest Abu Dhabi Real Estate Report Q4 2016 from leading consultancy Asteco.

    The decline will be exacerbated by new supply to the market. Approximately 1,400 residential units were handed over during 2016, and around 4,000 units – including 2,700 apartments and 1,360 villas - are expected to be handed over this year.

    “Although delays cannot be ruled out, this will definitely put pressure on rental rates for existing stock,” said John Stevens, Managing Director, Asteco.

    The continued macroeconomic uncertainty will also negatively affect rents as tenants search for more affordable rates.

    “Residential units that were previously able to maintain rental levels due to the reluctance of existing tenants to move, are now more likely to be affected as residents in search of the best value-for-money will become more frequent. High profile corporate mergers in the pipeline are expected to lead to increased job uncertainty and could affect employee benefit packages, including housing allowances over the next few years, raising the potential for softening demand and therefore declines in market rates,” added Stevens.

    Average apartment rents fell by 7% over 2016, whilst prime and high-end apartments declined by 6% and 9% respectively year-on-year. The average annual rent of a high-end two-bedroom property on Abu Dhabi Island falling 10% to AED 141,000 in 2016; and a two-bedroom apartment in Khalidya/ Bateen dropping by as much as 13%, on average, to AED 146,000. Mid and lower end apartments experienced a 5% drop, primarily during the second half of last year.

    Similar to apartments, villa rents declined by 5% on average in 2016, with the greatest decrease witnessed in the Al Raha Beach area (10%). “Mature villas, which previously recorded high rental rates, have been affected the most, which resulted in an increase in vacancies in some communities,” said Stevens.

    Average rents for villas on Saadiyat Island remained relatively stable over the year, which was mainly due to a large percentage of owner occupier properties.

    Apartment sales prices, meanwhile, decreased by 4% on average in 2016, with properties in Marina Square and The Gate both experiencing average drops of AED125 per ft2. Apartments in Raha Beach/Al Bandar and Reef Downtown both saw average price increases of AED50 per ft2 compared to 2015 figures.

    In terms of average villa sales prices, there was an average 4% decline during 2016. Villas in Raha Gardens fell by AED65 per ft2 and Golf Gardens by AED60 per ft2 on average. Saadiyat Beach Villas (Standard) held their value year-on-year.

    Stevens said: “The anticipated delivery of new residential projects is expected to increase investment opportunities, which in turn will have a positive effect on transaction volumes. Off-plan projects offering attractive sales rates and payment plans will continue to achieve good demand levels.”

    Office rental rates decreased on average by 7% year-on-year, with a notable slowdown in office take-up and upgrades, particularly for larger space requirements. As a result landlords countered by offering smaller units, lower rental rates and more flexible payment plans.

    “Demand for large offices will remain subdued and landlords are expected to continue to subdivide space in order to entice new take-up,” said Stevens. “New prime office projects are expected to be handed over in 2017, including Al Hilal Bank Headquarters and Abu Dhabi Islamic Bank Headquarters, which are likely to increase vacancy levels on the back of low demand.”

    List of few publications of this article

    Khaleej Times

    The National

    Gulf News

    Al Wahda

    Al Bayan

    Al Khaleej

    Al Khaleej - Website

    Dotemirates.com - English

    24.com.eg

    Syyaha.com

    UAEnewsapp.com

    Gulf Property - Website

    MEConstructionNews.com

    My Informs

    Zawya.com - English

    2017-02-13 - ​Dubai Tenants have the advantage in 2017

    Dubai Tenants have the advantage in 2017, says Asteco

    • Asteco’s Q4 2016 report highlights expected downward pressure on rents caused by increased supply
    • Average apartment and villa rents down by 6% and 5% through 2016
    • Residential sale prices bottoming out

    Tenants in Dubai could have the upper hand when negotiating rental rates thanks to a significant amount of stock coming to the market in 2017, according to the latest report from leading real estate consultancy Asteco.

    There are 31,500 apartments and 12,500 villas and townhouses scheduled to be delivered this year in areas including City Walk by Meraas, Damac’s Akoya, Dubai Wharf by Dubai Properties and Emaar’s Mira. This is in addition to 8,750 apartments and 5,000 villas completed in 2016.

    “Tenants will be offered a significant choice of completed properties in 2017 in both established and new communities,” said John Stevens, Managing Director, Asteco.

    “The additional supply will continue to put downward pressure on market rates, which will place the negotiating power firmly in the hands of tenants, despite a forecasted increase in population,” he added.

    However, the gap between planned delivery and actual handover can be “worlds apart, which could limit the impact of oversupply and generate modest levels of growth in certain popular communities,” he said.

    Figures in the Asteco Dubai Real Estate Q4 2016 report support the fact that the balance has been tipped away from landlords and it is the tenants who have the advantage when it comes to negotiating lease terms.

    Although average apartment rental rates declined by 5% since the previous quarter and 6% over the year, the individual numbers indicate that the market is becoming increasingly fragmented. Whilst rental rates in certain areas declined, others were more resilient to change and even experienced marginal growth. It is also important to note that buildings within specific communities are showing disparities in terms of the overall offerings and hence rates.

    The majority of areas have seen rental rates for one bedroom apartments drop AED 5,000 to AED 15,000. Units in Jumeirah Beach Residence are now available for AED 105,000, Business Bay demands AED 75,000 and International City reports AED 45,000 on average.

    As average one bedroom rents in Jumeirah Lakes Towers witnessed declines of AED 15,000 over the year to AED 75,000, rates in Downtown Dubai (AED 115,000), The Greens (AED 95,000) and Al Barsha (AED 75,000) all held their rental levels year-on-year.

    Average villa rents fell by 3% over Q4 and 5% year-on-year. Similar to the apartment leasing market, rents in areas such as Al Barsha and The Meadows saw double digit declines over the year as tenants relocated to newer, more affordable areas.

    However, average rents for three bedroom villas in popular communities such as Jumeirah (AED 190,000), Jumeirah Village (AED 160,000) and The Springs (AED 180,000) remained unchanged from a year earlier.

    Two villa developments have crossed the AED 200,000 mark for three bedroom units including Al Barsha and Arabian Ranches with villas available for AED 175,000 and AED 195,000 on average.

    Stevens said: “Landlords, especially corporates, offered incentives such as increasing the number of cheques accepted and longer rent-free periods to entice take-up, especially in newly handed over communities that still lack supporting infrastructure, retail and leisure facilities. Single unit owners (especially those with mortgages) were more inclined to reduce rental rates to increase take-up, rather than undergo prolonged periods without any rental income.”

    Overall, average sales prices remained relatively unchanged over Q4 and for the full year, which Stevens believes, “signals the bottoming out of the market”.

    Although average sales prices of an apartment in Dubai Marina dropped compared with 2015, rates rose marginally over the quarter. Apartment sale prices in Jumeirah Lakes Towers, on average, held firm at AED 1,150 per square foot.

    In line with the apartment sector, average villa sale prices were generally flat over the last quarter, while the overall average annual change was minimal at -2%. Well established communities in prime locations such as Emirates Living and Arabian Ranches saw an average increase of AED 150 per square foot, whilst rates for developments with more supply growth potential, such as Jumeirah Village, dropped by AED 100 per square foot.

    Stevens said: “Market sentiment is expected to improve on the back of increased government spending on infrastructure, hospitality and retail projects, which will have a positive effect on demand for real estate in Dubai.”

    “The sales market will be increasingly driven by long-term investors and owner-occupiers and the rise in first time buyers will continue throughout 2017 as people take a long-term view to living in Dubai.”

    Average office rental rates fell 3% year-on-year, while average sales also suffered a drop, of 5%. “Both office rental rates and sale prices will continue to come under pressure as new developments are handed over whilst demand is expected to remain low. Tenants and buyers will continue to expect attractive rates, incentives and flexible payment terms,” said Stevens.

    List of few publications of this article

    Gulfbase.com

    Middle East Directory

    Khaleej Times - Online

    BQ-magazine.com

    Zawya.com - English

    Lusail Newspaper

    Albawaba

    Rama-news.com

    Faselah.net

    Al Watan - UAE

    Gulfbase.com