Middle East Property

Donald J. Trump, Jr., son of Donald J. Trump, and Executive Vice President of Development and Acquisitions, The Trump Organization, is in Dubai this week to reveal details about the new design and discuss The Trump Organization’s increased involvement in the UAE. Speaking at the Arabian Hotel and Investment Conference (29th April to 1st May), he will discuss mixed use developments & condo hotels and feature in a round table discussion on private equity in the Middle East. On the 2nd May, he will be present on the Nakheel stand at the Arabian Travel Market.

Trump International Hotel & Tower, The Palm Jumeirah is the initial development in Nakheel and The Trump Organization’s joint-venture in the Middle East, which includes exclusive rights for 19 countries in the Middle East region and 17 major brands. It is also the first UAE property in the portfolio of Nakheel Hotels & Resorts, Nakheel’s hotel and resort investment company, which was launched in February this year.

On announcing the partnership in October 2005, Donald J. Trump, Chairman and President of The Trump Organization, who is known throughout the world for his luxurious real estate developments, stated that the organization’s architects and designers would engage closely with Nakheel Hotels & Resorts on the design. The results of the partnership have now been released.

The US$600 million Trump International Hotel & Tower, The Palm Jumeirah is a stunning 48 storey mixed-use hotel and residential building, anchoring the trunk of the 5 by 5km man made palm tree shaped island which lies off the coast of Dubai. The first of three such islands to be built in Dubai, The Palm Jumeirah will be one of the world’s premier resorts, offering a wealth of beachfront hotels, residences, retail and leisure.

The new ultra-modern design, features a split linked tower – an innovative open core design that minimizes shadows – constructed with stainless steel, glass and stone. Regarding the new design, Donald J. Trump, Jr. said:

In redesigning the property, we focused on creating a magnet for tourists and residents and a landmark icon on the Dubai skyline. Trump International Hotel & Tower, The Palm Jumeirah will soar into the sky, its twin sets of glazed diamond shaped structures at the top of each tower creating a sense of infinity as the glazed elements blur building and sky

Sultan Ahmed bin Sulayem, Executive Chairman, Nakheel stated: ‘The new design ensures that the property will be a striking landmark – a bold monument at the heart of the island. The property’s taller, more slender design allows for a linear view through the building to the top of the island and provides spectacular panoramas of the island, Dubai and the Arabian Gulf, with all rooms benefiting from a sea view.’

‘In building the vision of Dubai, Nakheel is committed to creating genuinely unique projects which are at the forefront of innovation”, Sultan Ahmed bin Sulayem continued. “The new design of the Trump International Hotel and Tower lives up to this commitment and will provide a fitting landmark centerpiece for The Palm Jumeirah, our flagship development.

Old design of Trump International Hotel & Tower The Palm Jumeirah

‘As the world’s fastest growing city, it is important that Dubai forms progressive partnerships with prominent international organizations. Our alliance with The Trump Organization is a fantastic example of how such partnerships can operate successfully. The Trump International Hotel and Tower is the first example of this success’

New Design of Trump International Hotel & Tower The Palm Jumeirah

Source: AME Info

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Dubai based property company, Bonyan International Investment Group, has announced plans to invest $15 billion to build a tourist village within the area of Jebel Al Shiekh in Syria. Commenting on the project, Engineer Abdullah Attatreh, Chairman of Bonyan International Investment Group, said that the project will be called Syria Bonyan City and is a step towards achieving the company’s aim to build a city within every Arab city.

The new development will be the second after Jordan Bonyan City. The Syrian Higher Council for Investments has given initial approval for the establishment of this project, which will open new horizons for real estate investment in Syria. Final approval will be granted to the project as soon as feasibility studies and final designs are completed and submitted. “We are happy to have signed this important agreement with Bonyan International Investment Group. Syria Bonyan City is a mega project that will include tourist, commercial, residential and entertainment facilities including a Ski area, specialised hospitals and many other services” said .

Shaher Taqi, a Syrian investor and partner in Syria Bonyan City. “Real estate investment in Syria is growing at a rapid rate especially following recent reforms by the Syrian Government to attract foreign investment,” added Taqi. The Syrian Government recently made a number of economic and political reforms and will re-draft investment laws to reach a final version for approval and implementation. Syria is considered one of the most promising markets in the Middle East that is expected to attract foreign investments.

Source: Champress

JEDDAH – Real estate is the fastest growing sector in Saudi Arabia with more than SR1 trillion in investments. The growth is said to be the second highest in the world after Shanghai, according to Solaiman Al-Majed, Chairman, Tanmiyat Group.

But the burgeoning market needs to be regulated and organised in order to avoid scams, of which there have been quite a few, as well as achieve continuous progress and maintain investor confidence.

Apart from businessmen, thousands of ordinary Saudis have invested their money in real estate, in the expectation of large profits. But according to financial analyst Abdelmenem Jamil Addas this was not a healthy trend. “People think that they are seeing the dawn of a new era in the real estate market, that it will bring unimaginable riches and prosperity to all. This overconfidence will have dangerous consequences on our economy,” he added.

He said that the recent rise in real estate prices was being fuelled by artificially low short-term interest rates and a huge increase in bank loans. “We should not forget that as soon as interest rates rise, the rally in real estate prices will come to an abrupt end,” he explained. “Any market that is rising because of an increase in bank’s loans ought to be viewed with great caution,” he said.

According to Dr. Abdul Aziz Turkistani, a real estate expert, the real estate boom has led to the creation of many professional companies. “These firms,” he says, “are working to improve their organisational structure and marketing strategy in order to transform the sector into a successful industry.” He felt that real estate companies in the Kingdom should form an association to promote the industry with a view to facing competition from foreign firms.

Wafa Al-Ghamdi, an expert in the field, said there was a professional approach and a chaotic way of developing and marketing real estate. The professional approach relied on market studies, market analyses and meeting customer demands. “The Saudi real estate market still depends on old methods and does not meet customer demands, especially middle and lower class families,” she said. Among the problems the Saudi real estate market faced was the domination of a few investors, lack of studies, lack of laws protecting the investors and customers, lack of transparency in dealings and the reliance on rumours to promote properties. “There is also lack of market awareness among customers, particularly women, and agents take advantage of the women’s lack of knowledge,” Al-Ghamdi said.

A Jeddah Chamber of Commerce and Industry (JCCI) working team recently made a number of proposals to make the business transparent and foolproof protect the rights of investors and ensure steady growth.

The boom has been attributed to the continuous repatriation of Saudi funds from overseas and increasing liquidity supported by soaring oil revenues.

Government projects and initiatives provide major opportunities for the private sector. They also continue to ensure that the construction industry remains the largest non-oil economic sector in the Kingdom. It was estimated to have contributed more than $15 billion to the national economy in 2005.

Recognising the need to diversify and reform its economy, the government has provided incentives and relaxed laws. This has boosted the private sector’s enthusiasm for heavy investments in residential and commercial buildings. It is estimated that 555,000 individuals will need new housing annually. This gives ample scope for developers. It equates to 100,000 new residential units a year. Additionally, the Kingdom is also developing its tourism industry (largely local and religious tourism) and it is expected to contribute $22 billion to the economy by 2023.

The Kingdom’s new Real Estate Law allows non-Saudi residents to own real estate for their private residence with the permission of the Interior Ministry. It also allows ownership of real estate by foreign investors to conduct their business activities and to own properties needed for their accommodation and that of their employees. The law also entitles investors to rent out property.

According to Abdul Monem Murad, chairman of the real estate development committee at JCCI total investments in 53 real estate share businesses across the country have reached more than SR14 billion.

Abdul Rahman Al-Jeraisy, chairman of the Riyadh Chamber of Commerce and Industry (RCCI), is spearheading a joint venture with other businessmen to set up a large real estate company in Riyadh with a capital of SR30 billion. He said the new company would have a strong presence all over Saudi Arabia. His estimate is that five million housing units would be required by 2010.

Source: MENAFN

According to available statistics, the United Arab Emirate’s real estate market is expected to jump to 230 billion dirhams ($63 billion) in the next seven years which is an unparalleled achievement given the size of the country.

The sustained uptrend in global oil prices has contributed to this phenomenal growth leading to availability of surplus funds especially with the Gulf Cooperation Council (GCC) governments. Development of property and real estate has given rise to a host of property developers, financial institutions and fund management companies spread throughout the UAE with the main concentration being in Dubai.

Emaar Properties of Dubai has started construction of Burj View East Tower, the third and final high rise building in a three-tower project. Burj View is the world’s tallest tower, providing panoramic view of Downtown Dubai.

The project is expected to be completed by early 2008. The project offers one and two bedroom Burj Views residences covering an area of 726 square feet to 1400 square feet and offering a unique combination of amenities and unprecedented value.

Since its inception a year ago, the Dubai-based home finance company, Tamweel financed property worth 1.7 billion dirhams ($463 million). Tamweel’s meteoric growth within less than one year is ascribed to the fact that it has addressed a core sector of property market by affording a range of innovative products and working on distinct service strategies.

Jumeirah Beach Residence is perhaps the world’s single largest residential-cum-commercial property development project stretching along 1.7 kms of Jumeirah Beach. Besides Jumeirah Beach Residence, Dubai Properties has one more equally prestigious project, Business Bay. Both Jumeirah Beach Residence and Business Bay have been extensively exhibited at Home Owner Exhibition in Dubai which attracts visitors from the Gulf, the Middle East, United Kingdom, the whole of Europe, Russia, India, Americas and Australasia.

It is not only the residential or commercial towers/complexes which attract investors from the real estate market, even leisure and entertainment segment is making waves to leave a mark on Dubai’s property scene.

Tulip Business Developers’ flagship project, “Westside Marina” is worth 84 million dirhams and it offers the highest standard of designer, quality and luxury living to Dubai residents. It offers 67 luxury apartments of one to two bedrooms each with a price tag of 1.2 million to 1.8 million dirhams with 13 different layouts inclusive of six garden apartments with their own private gardens. Tulip is also investing more than $82 million (300 million dirhams) in Dubai Properties’ Business Bay and Palm Deira projects.

Another equally ambitious project is “Lakepoint” freehold tower at Jumeirah Lake Towers at a cost of 300 million dirhams. LAI General Trading (a 50-50 joint venture partnership between Al Yousuf Group and Gulf General Investment Co.) will develop the 45-storeyed Lakepoint Tower which consists of 414 apartments of one, two and three bedrooms each to be offered on freehold basis. The Tower, a purely self-financed project, is set to be completed by 2007.

Another relationship has come about between Damac Properties of Dubai and M.B. International Holdings, a leading private property company that owns and manages commercial and residential properties in the U.K., the Mediterranean and Eastern Europe. In a landmark deal, Damac has sold out all retail space in its “Marina Terrace” project to M. B. International. Its senior executive praises the project as “Marina Terrace” sets new standards for opulence, exclusivity and luxury living. Its super-contemporary design and sensibility exudes grace and style…..”.

RAK Real Estate Company is slated to embark on a very ambitious project called “Mangrove” at a cost of 2.7 billion dirhams. Starting initially with large scale renovations in certain parts of Ras Al-Khaima, the company shall undertake the development of Mangrove project which covers 700,000 square meters. Created under the royal decree, the RAK Real Estate Company operates in vast and diversified spheres including construction, purchase and sale of real estate, property rental and renovation of existing buildings/properties.

Another financial institution hitting the headlines on the Gulf’s Real Estate scene is Bahrain-based Gulf Finance House (GFH). Euromoney magazine has, second time in a row, selected GFH as the best Islamic Real Estate Finance House for its cutting edge Shariah-compliant investment initiatives in the real estate sector. GFH’s Chief Executive Officer, Esam Janahi, confirmed, “Real Estate, as an asset class, yields higher returns when compared to other conventional options.

The finance house has made use of lucrative opportunities thrown up by the GCC as well as overseas property markets”. GFH has successfully positioned itself as a leading financial institution with a focus on raising investments in the Gulf and placing these as private investments in projects both internationally and in the Middle Eastern region. Across the globe, GFH has investments in blue-chip properties in Spain and France. Backed by a team of management professionals, GFH has, within a short span of time since its inception, increased its assets in excess of $1 billion.

Source: MENAFN