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    2016-04-11 - Asteco to debut at Cityscape Abu Dhabi with final release of Anantara Hotel Residences

    Remaining 30 one-bedroom units to be released for sale with guaranteed ROI of 10% per annum through to 2018; Asteco will also show DUKES Dubai British-themed project with just 13% of units remaining.

    In partnership with Dubai-based luxury property developer Seven Tides, leading regional real estate consultancy firm and appointed sales agent, Asteco, will release the final tranche of units for sale as part of its luxury Anantara Residences hotel rooms collection at this year’s Cityscape Abu Dhabi exhibition.

    This year Asteco will be making its Cityscape debut, at the Abu Dhabi National Exhibition Centre from 12-14 April 2016, offering 30 one-bedroom hotel room units for sale at the Anantara Residences Hotel Rooms project on The Palm Jumeirah, with sizes ranging from 530 up to 650 square feet, and a starting price of AED 1.3 million.

    This follows the successful December 2015 release of phase one of the Anantara hotel rooms project, which saw all 73 units snapped up within days of release.

    "The Anantara Residences project, and the hotel rooms' component in particular, have been in high demand from the international investment community since day one of release. The choice between an upmarket second home and hotel rental managed one-bedroom unit has allowed us to reach out to a wider investor base, which when coupled with the extremely attractive ROI potential, has fast-tracked interest and sales," said Abdulla bin Sulayem, CEO, Seven Tides.

    A complete lifestyle experience is included with guests enjoying full

    access to the hotel's exclusive facilities, which include a 4,000-square

    foot state-of-the-art gym, 107,600-square feet of temperature

    controlled lagoon pools, six world-class dining and entertainment venues

    and the Anantara Spa as well as housekeeping, at-home dining, laundry

    and childcare services.

    The Anantara Residences North and South buildings, which also come with a three-year developer-backed guarantee of 10% (paid quarterly) will also be on show at Cityscape. Asteco will be presenting the one-bedroom through to penthouse apartments to interested investors.

    Asteco statistics show that units have been purchased by investors from across the GCC as well as Russia, and India, reflecting the ongoing attraction of high quality and internationally branded residential projects located in prime Dubai areas to both regional investors and overseas buyers.

    "With 10% guaranteed ROI for three years and the cachet of being situated on Palm Jumeirah within a truly unique island community, backed by a luxury global hospitality brand and five-star lifestyle, are compelling reasons why investors are drawn to this project," said John Stevens, Managing Director, Asteco.

    DUKES Dubai, which has also performed exceedingly well in the current market environment. Ready for immediate rental from handover, investors are able to quickly realise ROI potential, which will be bolstered by the appeal of the hotel's luxury positioning and exceptional facilities.

    Asteco will also be showcasing Seven Tides' latest development, its British-themed DUKES Dubai development, which is almost 90% sold out, with the developer recording unprecedented demand from investors across the region.

    "DUKES 'Best of British' lifestyle has clearly resonated with investors and with just a few units remaining, we expect to see strong interest at Cityscape Abu Dhabi in the hotel-managed studio and one-bedroom apartments," said bin Sulayem.

    Starting from AED 1.8 million, the DUKES Dubai collection of studio and one-bedroom apartments range in size from 376 to 882 square feet and are being marketed with the added bonus of a developer-backed ROI guarantee of 10% for five years.

    "The DUKES units are for investment purposes only, sold on a freehold,

    fully furnished basis. As part of the hotel-managed rental scheme,

    purchasers have peace of mind from day one plus the added benefit that

    for the first five years they are exempt from service charges,

    maintenance fees and utility bills," noted Stevens.

    Established in 2004, Seven Tides has developed its own portfolio of commercial, residential and resort properties in some of the world’s most desirable locations. Its award-winning flagship hotel, DUKES London, is situated in the fashionable Mayfair district and has been a hospitality icon in the capital for well over a century.

    Asteco is exhibiting at Cityscape Abu Dhabi in Hall 6 – stand number E01. For sales enquiries please contact +971 600 54 7773 or email customermanagement@asteco.com.

    2016-02-28 - Rates steady in 2016 despite dip in demand for Abu Dhabi property

    Rates steady in 2016 despite dip in demand for Abu Dhabi property says Asteco report, after modest market gains in 2015.

    • Apartment rental rates and sales prices up 4% and villa rentals up 2% with sales prices flat in 2015
    • 2016 activity to slow but prices to hold steady; new property law to boost investor interest

    Leading real estate consultancy Asteco has released its latest UAE Real Estate Report with an in-depth focus on Abu Dhabi, looking back at 2015 and providing a 2016 outlook, with continued low oil prices set to exert ongoing downward pressure on the market despite limited pipeline growth.

    Following a slow but overall positive market performance in 2015, which saw apartment rental rates increase, on average, by 5%, with prime projects achieving up to 10% growth, and 3-4% growth for apartment sales prices, Asteco expects a noticeable slowdown in the next 12 months, compounded by a reduction in government spending and stagnant salary levels.

    "Expatriates make up around 75% of the population in the capital and are a major demand driver for residential property. So unless there is a significant shift in labour requirements, we feel that the existing supply and demand dynamic will keep the market in equilibrium in the short to medium term. In addition, the new property law – No.3 of 2015 - should boost investor confidence with improved sector regulations across a number of key areas," said Jerry Oates, General Manager, Asteco Abu Dhabi.

    A total of 2,000 apartments and 100 villas were delivered last year including 850 units in phase one of Reem Island’s Hydra Avenue project, 160 units at Sea Side Tower, also on Reem Island, and 312 serviced apartments at Saraya’s Creek Tower on the Corniche.

    "The temporary removal of the rent cap also helped increase rental rates for mid to low end units in line with market rate as these were previously underpriced. We are also, expecting a slight increase in rental rates for some popular projects, as well as some older buildings inside Abu Dhabi City that didn't increase their rates in 2015," added Oates. At the top end of the market, prime two-bed apartments on Abu Dhabi Island were renting at an average of AED 191,000 in 2015, up from AED 175,000 the previous year, while high-end two-beds in Central Abu Dhabi jumped from AED 145,000 to AED 150,000 and at Al Raha Beach from AED 155,000 to AED 161,000. At the mid and lower end, Reef Downtown increased from AED 100,000 to AED 104,000 and Corniche two-beds from AED 120,000 to AED 125,000.

    Abu Dhabi will add 3,000 apartments and 850 villas to its residential supply this year, including Wave Tower with 229 units and Solaris Towers with 600 units on Reem Island, and phase one of Hidd Al Saadiyat (488 villas).

    With 4% recorded growth in apartment sales prices, popular Raha Beach communities Al Bandar and Al Zeina moved upwards from AED 1,550 per square foot to AED 1,650 and AED 1,200 to AED 1300 respectively. For villas, 0% growth last year saw per square foot sales prices stuck at AED 1,020 for Golf Gardens, AED 650 for Hydra Village and AED 1,500 for the Saadiyat Beach (standard) Villas.

    This year, Asteco is taking a cautious view of prospective market movement with the residential sales market not expected to see any major drop in prices for completed properties due to sustained demand by owner-occupiers and investors. “Sales for new launches, which slowed down in 2015, are also expected to pick up once buildings come closer to handover, but we anticipate that this will more than likely be a 2017 scenario,” noted Oates.

    In the commercial sector, the overall office rental market remained stable in 2015 despite low demand due to the decline in oil prices; however, several fitted offices in grade B buildings that had been leased out at lower than market rates increased by 5% to 7% during H2.

    "The overall demand for office space in 2016 is expected to be restrained due to the continued decline in oil prices and government spending cuts, which are likely to affect jobs especially in the oil sector," remarked Oates.



    Published in

    Gulf News

    Al Watan - UAE

    Khaleej Times

    Al Bayan

    Emirates Business Newspaper

    Al Wahda

    The National

    Al Khaleej

    Emirates 24/7 Online

    GN Property - Website

    Gulfbase.com - English

    The National - Website

    Business-Intelligence Middle East

    MENA Herald - English

    Zawya.com - English

    Construction Week - Website

    The National - Website

    Property Weekly

    Al Iktissad Wal Aamal

    Gulf News

    Gulf News - Website

    GN Property - Website

    The National - Website

    2016-02-28 - Latest Asteco report highlights affordability of Northern Emirates

    Latest Asteco report highlights affordability of Northern Emirates.

    • Rental rates in Sharjah and RAK drop by 2% and Ajman flat in 2015
    • Relocations from Dubai decline as new affordable supply opens up
    • New Sharjah foreign ownership laws prompt renewed interest, 2016 outlook subdued

    Leading real estate consultancy Asteco has released its latest Northern Emirates market update as part of its UAE-wide Real Estate Report, which includes a review of 2015 market activity as well as a 2016 outlook.

    According to the report, the residential leasing picture in 2015, with the exception of Fujairah, saw rental rates across the Northern Emirates decline marginally, with Sharjah, Ajman and Ras Al Khaimah recording 2%, 0% and 2% falls, respectively.

    "Market activity in Sharjah is historically interlinked with that of Dubai, with the two emirates in such close proximity that the ebb and flow of residents between them usually follows the rental market highs and lows in Dubai," said John Stevens, Managing Director, Asteco.

    "But with both emirates investing heavily in infrastructure development and a growing quality-focused residential offering, we are seeing a slow shift towards a more stable environment as investors and tenants consider the quality of life outside of Dubai." He added.

    In 2015, Sharjah added a number of residential developments to its existing supply including the Diamond Tower in Al Nahda with 2,105 units, two residential buildings in Al Tawuun (798 units) and a 175-unit block in the Al Khan district. This year could see more stock delivered including 1,520 units in Al Nahda (Rayyan Complex), Al Khan (Pearl Tower) and Al Qasimiyah (CG Mall Residences).

    "It's worth noting that the swift take-up of newly handed over supply in Sharjah was in some cases, at higher rates than seen previously. This was due to the improved quality of the properties, convenient car parking availability, better facilities and amenities," remarked Stevens.

    This is being driven largely by a rapidly developing tourism product with a number of initiatives launched in 2015 such as the expansion of the Majaz waterfront and the completion of Noor Island. In the Majaz and Al Khan areas, a ‘quality’ three-bedroom apartment commanded AED 95,000 and AED 105,000 respectively per annum, compared to AED 85,000 several months earlier.

    Affordable developments in Sharjah attracting investors in 2015 included Al Thuriah’s Sahara Tower 4 in Al Nahda, where two-bedroom units started from AED 765,000 with 50% of payment due post-completion, and two-bedroom apartments at the Al Rayyan complex were available for under AED 1 million.

    According to Stevens, although affordability is a key USP for many entry-level investors, the sales environment in Sharjah is expected to stagnate in 2016. This is despite the opening up of the market to foreigners, and is led by concerns about the general lack of regulatory clarity a major issue for prospective investors, further compounded by the increase of affordable and competitive products recently launched in neighbouring Dubai.

    "If we consider the bigger picture and look at the Northern Emirates as a whole, only quality projects at truly affordable prices may be able to generate any traction – and only then if proper and transparent property ownership laws and regulations are in place,” said Stevens.

    Major projects set to be handed over in 2016 in Ras Al Khaimah include the 1,440-unit Pacific Beachfront development on Marjan Island from the Select Group, with 80% of the apartments already sold according to the developer.

    The popular Mina Al Arab community will launch phase two of its Flamingo Villas this year, delivering an additional 68 units by the year-end, ranging in size from 2,008 to 2,334 square feet.

    Currently, new RAK developments are commanding average annual rental rates of AED 60,000 for a two-bedroom apartment, down from AED 63,000 in 2014, with three-bed units achieving AED 100,000 (down from AED 110,000 in 2014).

    Ajman is also working to upgrade its attractiveness with exciting initiatives such as the Al Zorah development adding a golf course to the lifestyle offering. This year will also see the launch of a five-star Oberoi hotel in mid-2016.

    List of few publications of this article

    The National

    Khaleej Times

    Al Bayan

    Gulf News

    Al Watan - UAE

    Al Khaleej

    Al Wahda

    Al Khaleej - Website

    Al Bayan - Website

    Al Watan - UAE - Website

    Emirates 24/7 Online

    Maktoob News - Arabic

    CNBC Arabia - Website

    MENA Herald - Arabic

    The National - Website

    Facebook - Gulf News 24/7

    Fujairah City Guide

    Dubai Informer

    The National - Website

    Noozz.com

    Property Watch Magazine - Website (English)

    Business-Intelligence Middle East

    Gulf Daily News - Website

    Gulf Construction - Website

    Gulf News 24/7

    Trade Arabia

    Anbaalwatan.com

    GN Property - Website

    Emirates 24/7 Online

    Albawaba (Arabic)

    Gulf in the Media.com

    UAE Business Review - English

    Facebook - Media Times Online

    Media Times - Arabic

    Emirates 24/7 Online

    2016-02-28 - Dubai property prices fall by 11% in 2015

    Dubai property prices fall by 11% in 2015 - affordability key market driver in 2016 says Asteco.

    • Average villa sales prices down 11% apartments 8% year-on-year
    • Average rental rates dipped just 1% across-the-board
    • 22,000 apartments and 7,700 villas schedule for delivery this year, keeping downward pressure on sales and rental rates through 2017

    Leading real estate consultancy Asteco has released its latest Dubai report, providing an historic review of last year and 2016 outlook, with affordable communities leading the way in terms of rental demand and investor opportunity against a scenario of significant oversupply looming in the high-end and luxury segments.

    The report flags the impact of delayed project delivery in 2015 and a large pipeline for 2016, coupled with the demand slowdown and continued low oil prices, as an indicator of market prospects this year, with both rental rates and sales prices coming under further pressure.

    A total of 13,500 apartments and 800 villas were added to Dubai’s residential real estate supply in 2015, and a further 22,000 apartments and 7,700 villas are scheduled to be delivered in 2016, with downward rental rate pressure likely to continue through to 2017, says the report.

    "However, if we look to the medium and long-term, the outlook is more positive with demand more than likely to grow in line with the progress of key infrastructure projects currently underway, such as Dubai World Central Airport and Expo 2020," said John Stevens, Managing Director, Asteco.

    Residential sales recorded across-the-board declines, with villa sales prices down year-on-year by 11% and apartments by 8%. Villas on Palm Jumeirah recorded price declines of 13% over the year, dropping to AED 2,475 per square foot on average and The Meadows was also down 15% to AED 1,150.

    End-users, rather than investors, were the predominant buyers of villas and townhouses, with a clear preference for smaller 2, 3 and 4 bedroom units, rather than large villas. New communities such as Mudon and Arabian Ranches Phase 2 saw improved levels of activity, offering better-priced yet good quality alternatives to some of the more established areas.

    At the high end of the apartment market, Jumeirah Beach Residence was down 16% to AED 1,370 per square foot and apartments on the Palm Jumeirah dropped 14% to AED 1,720 per square foot on average.

    Villa rentals were down 9% on average year-on-year, but Al Barsha recorded an increase for three-bedroom villas, up 9.2% to AED 213,000 per annum while in Mirdiff similar properties rose 4.2% to AED 138,000.

    The biggest falls came in Jumeirah and Umm Suqeim where three-bed villas dropped more than AED 50,000 or 20% on average to hit AED 195,000, while larger four-bedroom homes in Arabian Ranches and Jumeirah Park were also down 19% to AED 243,000 and 15.5% to AED 145,000 respectively.

    "With fresh new supply entering the market, this is forcing property owners, especially of older independent villas, to become increasingly competitive on pricing," remarked Stevens.

    With supply handover slower than anticipated in 2015, apartment rental rates remained broadly stable over the year, dipping just 1% on average, although Asteco recorded disparities between different areas.

    Apartment rental rates were down by 4% on average, with Sheikh Zayed Road recording the highest drop of over 12%. Dubai Marina and Palm Jumeirah both saw a year-on-year dip, with a one-bedroom apartment dropping 13.3% to AED 98,000 and 10% to AED 135,000, respectively.

    The DIFC area was not immune either in 2015, two-bedroom units have dropped 8.7% to AED 158,000 per annum, as did JBR with the highest average decline for a two-bedroom apartment, dropping 9.2% to AED 148,000.

    "For property owners, adjustments in terms of rental expectations and payment flexibility will have to be made. And, as usual in cases of increased supply, better quality, well managed or value-for- money properties will be able to achieve higher occupancy levels than others," noted Stevens.

    The commercial office sector fared slightly better despite significant new space of 500,000 square metres coming online in 2015 and 1.1 million square metres set to be delivered in 2016. H1 2015 saw improved levels of demand leading to moderate increases in rental rates in certain areas.

    "The majority of new office supply entering the market this year will be strata-owned buildings in popular office areas like Business Bay and Jumeirah Lake Towers. Sales demand is expected to come primarily from SME level end-users," added Stevens.

    List of few publications of this article

    Gulf News

    Al Bayan

    Khaleej Times

    The National

    Al Khaleej

    Emirates Business Newspaper

    Times of Oman

    Saudi Gazette

    Al Bilad - Bahrain

    Al Qabas

    Emirates 24/7 Online

    Zawya.com - English

    Dubai Chronicle

    Gulf in the Media.com

    The Big 5 Hub

    Al Bilad Bahrain - Website

    Bahrain.shafaqna.com

    Amwal - Website

    UAE Business Review - English

    Al Arabiya English - Website

    The Gulf Time UAE - Website

    MENA Herald - English

    Azad NewsME - Website

    Go Dubai

    Twitter - Mid-East.Info

    UAE Today - Website

    Dubai City Guide

    Gulf News 24/7

    Amman Xchange

    LinkedIn - Shamal Marketing

    The National

    The National - Website

    Arabianbusiness.com - English

    Zawya.com - English

    Gulfbase.com - English

    Gulf in the Media.com

    UAE Business Review - English

    GN Property - Website

    The Big 5 Hub

    Gulf News

    Gulf News - Website

    2016-02-10 - Rates steady in 2016 despite dip in demand for Abu Dhabi property says Asteco report, after modest market gains in 2015
    • Apartment rental rates and sales prices up 4% and villa rentals up 2% with sales prices flat in 2015
    • 2016 activity to slow but prices to hold steady; new property law to boost investor interest

    Leading real estate consultancy Asteco has released its latest UAE Real Estate Report with an in-depth focus on Abu Dhabi, looking back at 2015 and providing a 2016 outlook, with continued low oil prices set to exert ongoing downward pressure on the market despite limited pipeline growth.

    Following a slow but overall positive market performance in 2015, which saw apartment rental rates increase, on average, by 5%, with prime projects achieving up to 10% growth, and 3-4% growth for apartment sales prices, Asteco expects a noticeable slowdown in the next 12 months, compounded by a reduction in government spending and stagnant salary levels.

    “Expatriates make up around 75% of the population in the capital and are a major demand driver for residential property. So unless there is a significant shift in labour requirements, we feel that the existing supply and demand dynamic will keep the market in equilibrium in the short to medium term. In addition, the new property law – No.3 of 2015 - should boost investor confidence with improved sector regulations across a number of key areas,” said Jerry Oates, General Manager, Asteco Abu Dhabi.

    A total of 2,000 apartments and 100 villas were delivered last year including 850 units in phase one of Reem Island’s Hydra Avenue project, 160 units at Sea Side Tower, also on Reem Island, and 312 serviced apartments at Saraya’s Creek Tower on the Corniche.

    “The temporary removal of the rent cap also helped increase rental rates for mid to low end units in line with market rate as these were previously underpriced. We are also, expecting a slight increase in rental rates for some popular projects, as well as some older buildings inside Abu Dhabi City that didn't increase their rates in 2015,” added Oates.

    At the top end of the market, prime two-bed apartments on Abu Dhabi Island were renting at an average of AED 191,000 in 2015, up from AED 175,000 the previous year, while high-end two-beds in Central Abu Dhabi jumped from AED 145,000 to AED 150,000 and at Al Raha Beach from AED 155,000 to AED 161,000. At the mid and lower end, Reef Downtown increased from AED 100,000 to AED 104,000 and Corniche two-beds from AED 120,000 to AED 125,000.

    Abu Dhabi will add 3,000 apartments and 850 villas to its residential supply this year, including Wave Tower with 229 units and Solaris Towers with 600 units on Reem Island, and phase one of Hidd Al Saadiyat (488 villas).

    With 4% recorded growth in apartment sales prices, popular Raha Beach communities Al Bandar and Al Zeina moved upwards from AED 1,550 per square foot to AED 1,650 and AED 1,200 to AED 1300 respectively. For villas, 0% growth last year saw per square foot sales prices stuck at AED 1,020 for Golf Gardens, AED 650 for Hydra Village and AED 1,500 for the Saadiyat Beach (standard) Villas.

    This year, Asteco is taking a cautious view of prospective market movement with the residential sales market not expected to see any major drop in prices for completed properties due to sustained demand by owner-occupiers and investors.

    “Sales for new launches, which slowed down in 2015, are also expected to pick up once buildings come closer to handover, but we anticipate that this will more than likely be a 2017 scenario,” noted Oates.

    In the commercial sector, the overall office rental market remained stable in 2015 despite low demand due to the decline in oil prices; however, several fitted offices in grade B buildings that had been leased out at lower than market rates increased by 5% to 7% during H2.

    “The overall demand for office space in 2016 is expected to be restrained due to the continued decline in oil prices and government spending cuts, which are likely to affect jobs especially in the oil sector,” remarked Oates.