Abu Dhabi rolls out real estate reforms

 Wide-ranging reforms aimed at regulating Abu Dhabi's real estate sector and encouraging best practices look set to lift investor sentiment despite the challenging regional economic climate.
Abu Dhabi introduced its new property law at the beginning of 2016, with a view to improving accountability and transparency across the industry.

The regulatory overhaul, which followed calls for greater protection for buyers, will likely be supported by further legislative changes covering building standards.
Clarification and protection

Under the new legislation, a comprehensive register of property interests, providing data on all of Abu Dhabi's projects, developers and service providers, will be set up. The new rules also set out the rights and obligations of all parties, and detail the registration of property interests.

Supervision will also be stepped up for projects at the off-plan stage in a bid to strengthen project governance and increase protection for investors through mechanisms like escrow accounts.

Significantly, the new regulations provide for multi-owner or strata projects by making it easier for developments to be divided according to project areas.

In addition, the rules formalise Abu Dhabi Municipality's right to cancel licences and take action on failing projects. A separate provision allows investors to cancel purchase contracts if a developer is found to be in material breach of the agreement.

The reforms have been welcomed by the real estate industry, with experts optimistic that increased transparency and accountability will, in turn, generate higher levels of confidence and sustained demand.

"The property law will lessen the impact of potential cyclical economic factors such as oil price movements on real estate prices, creating a less volatile environment which should encourage continuous investment and growth of the sector," Chris Taylor, CEO of real estate financial services provider Abu Dhabi Finance, told media in March.
Rental returns slowing

However, while confidence in the market looks to be on the rise, earnings in the rental segment are flattening out.

The slowing of the regional economy, combined with an oversupply of residential units, pushed down rents across most segments of the property market at the beginning of the year, according to online real estate portal Bayut.

Average apartment rents fell by 5% month-on-month in January, the firm said in its latest study, though dips varied according to unit size and location. Demand remained solid in prime areas such as Al Reem Island, Al Raha Beach, Al Reef, Al Ghadeer and Saadiyat Island, Bayut noted.

Rental returns have felt the weight of a rise in the number of vacant properties. Official estimates suggest that 37% of available residential units stood empty as of mid-February. Abu Dhabi will be looking to the new regulations to help reduce the figure to a more manageable 8% by 2020, according to Abdullah Al Baloushi, director of the land and property division of Abu Dhabi Municipality.

While tighter liquidity levels are also expected to exert downward pressure on Abu Dhabi's property market this year, Bayut expects the sector to continue to benefit from the emirate's ongoing development as a business and innovation hub, which in turn should keep attracting human capital.
Construction standards in the spotlight

Further reforms under development, aimed at reinforcing building standards, are expected to support the recent regulatory overhaul.

The review comes after flooding in parts of the emirate in mid-March exposed structural weaknesses in some buildings.

Abu Dhabi Municipality received more than 850 reports of property damage and flooding from the heavy storms, prompting a commitment from the National Emergency Crisis and Disaster Management Authority to tighten building regulations and inspection practices.

Although these and other reforms reflect a maturing in Abu Dhabi's property market, Matthew Green, head of research and consulting for the UAE at real estate agency CBRE, said the stricter regulations could impact prices.

"Whilst the finer details remain unclear, more comprehensive safety checks and stringent measures could have obvious implications for the construction industry, both in terms of time and cost of development," he told media last month.

Resource: http://projects.zawya.com/

Buying a Home in Jaffa's Ajami Takes Money and Courage read

No less than 31 bids were made recently for a 174-square-meter plot on Batsra Street in the Givat Aliyah neighborhood south of Jaffa’s Ajami neighborhood.

The property, offered for sale as part of a tender issued by the government housing company Amidar, is zoned for two housing units; its minimum price was set at 486,8000 shekels about ($129,000), not including value-added tax. An Amidar appraiser assessed the value of the lot at 1.07 million shekels before VAT. The winning bidder would get leasing rights for 98 years, with an option to extend them for another 98 years.

The large number of bids would seem to indicate that the competition for the property was fierce, but a closer look shows that half of them did not even reach the 750,000-shekel mark. The bidders were probably hoping that since it was Jaffa, located south of Tel Aviv, they could get the property for a cheaper price.

Gentrification is not uncommon in Israel, but the fact that wealthy Jewish citizens are displacing poor Arabs has made the process in this locale more fraught politically.

Property sales in Jaffa, and Ajami in particular, are often complicated by active opposition from veteran residents who claim long-time ownership of land or buildings, or say they were promised to them in one way or another. In many cases, properties on sale have been taken over by squatters, with the tender specifying that the winning bidder will bear sole responsibility for evicting them.

In one case, the winning bidder for one property discovered that the family squatting there had criminal connections and refused to leave or to enter into negotiations for compensation. It took four years of legal proceedings before the buyer was able to get back the down payment he had made, plus some minor compensation.

Even tours of properties in Jaffa do not always go smoothly. Potential buyers who come to view lots owned by Amidar, Halamish or the Israel Lands Authority often find a group of locals waiting to greet them. The encounters start with polite questions about purchasing a property – which the family then says it owns – and progresses to implied and sometimes overt threats. In some cases, “foreigners” are physically blocked from seeing the property.

Police intervention

In cases where there is a real risk of confrontation, police are invited to the location from the start, and if things escalate, their presence is significantly increased.

In addition, local activists have campaigned to end the practice of selling properties in Jaffa to the highest bidder, with the argument that local families and lower-income residents from the area should be given priority to purchase properties at lower prices. Protesters calling for such changes often stage rallies during tours of local lots.

Obviously, someone who comes to see a property – and is met with menacing stares, curses, threats and shoving, and is compelled to run a gauntlet, cleared by the police, between angry neighbors or protesters wielding megaphones, drums and trumpets – is going to conclude that building there is going to prove tricky, to say the least. The sense of insecurity will immediately dampen potential buyers’ interest and significantly dent the value of the properties that are up for sale.

Still, if you compare the Batsra Street tender with one for two adjacent lots conducted just a year earlier, you can see that Ajami is luring more and more buyers, and prices are still rising, in spite of the immense challenges.

A year ago a tender for a 160-square-meter lot attracted only three bids and the property was sold for 669,000 shekels, or about 19% less than the appraiser’s assessment of 825,000 shekels. For the second property, of 149 square meters, only four bids were submitted. It was sold for 21% more than the appraiser’s figure but, at 920,000 shekels, was about 17% less per square meter than the Batsra Street lot.

A year ago, the prices paid for those two lots seemed steep, but even in a nationwide housing market where prices are spiraling higher, the increase in their value is quite impressive, if you use the Batsra Street process as a benchmark. What has happened in Ajami?

There are several answers to this. The image of residential projects in Jaffa in general has improved greatly within the space of just a year, and actually some of the fears about confronting angry residents is apparently dissipating. Prices in Jaffa are still not high relative to Tel Aviv. Moreover, small lots for one or two homes are an attractive proposition for high-end clients who want to build their own home rather than opt for an investment. Prices in cases like that are less of an object – and they have soared accordingly.

The writer is a co-owner of Shefer-Tzruya Real Estate, which specializes in marketing lots and buildings.

Resource: http://www.haaretz.com

Why commercial real estate projects need video

Getting media attention for commercial and industrial real estate developments can be pretty tough these days.

In a world of shrinking media and mass layoffs, there are fewer and fewer news outlets writing about real estate in Canada.

Getting media coverage requires the right combination of storytelling sense, contacts and partnerships. It’s still possible, of course, but finding your story and getting it out there involves a magic formula that is always evolving.
Video now standard requirement

The latest element to help captivate audiences is video. It’s become a standard requirement in a very short period of time.

In just the past year, news outlets have come to rely on video created by the companies they profile because they don’t always have the resources or time to produce it themselves.

For them, it’s an added value to their readers to post video at the end of a story. It can also be the story in and of itself.
Lightworks garnered more than 2,500 unique views

For Vancouver-based developer, PC Urban, producing a video about their heritage industrial development, Lightworks, garnered more than 2,500 unique views and helped bolster existing public relations efforts as well as the social media campaign.

It not only provided content for the media and for social media, it also really brought the development to light in a way that’s impossible in just words. Interviews with the developer and with business leaders in the neighbourhood really served to illustrate what makes this project interesting and the changes coming to this area of Vancouver.

Another successful video example was produced for Wesgroup’s massive, new riverfront development River District. To launch the 140-acre mixed-use residential and retail neighbourhood, we invited media to a hot air balloon tour so they could see the breadth and scope of the development.
Smart City Media produced video

We got drones out and Smart City Media produced the video that was posted on many media sites, along with their experiences of riding in a hot air balloon. It was shared 2,600 times.

The drone video was so cool and fun to watch Wesgroup continued to produce a series of videos over the summer to draw people to what is a relatively unknown area of Vancouver. One of their summer event videos received more than 4,000 views. Another was featured in a video and posted on the local blog, Vancouver is Awesome.

Resource: http://renx.ca

Greybrook Realty Partners Invests $17,390,000 in a Residential Land Development Project with Cityzen Development Group and Tercot Communities in Oakville, Ontario

TORONTO, April 19, 2016 -- Greybrook Realty Partners Inc. is pleased to announce the successful deployment by its managed issuer of $17,390,000 in equity to acquire and subsequently manage the development of a parcel of land located in Oakville, Ontario. The property is co-owned with Cityzen Development Group and Tercot Communities. 

The Town of Oakville is a picturesque community known for its established neighbourhoods and the attractive range of community amenities that it offers.  Oakville is generally recognized as one of the most prestigious residential communities in Ontario and the Town’s quality of life and diverse employment base have attracted affluent residents. As a result, Oakville possesses one of the highest median household incomes in Canada.  Easily accessible by major highways and by GO train, Oakville’s proximity to Toronto has generated strong demand for residential housing. Additionally, a significant number of corporate head offices are located in Oakville, including Tim Hortons, Siemens Canada Ltd. and Ford Motor Company of Canada.

The development site is located within the planned Glenorchy neighbourhood of the New Communities of Oakville, wherein the North Oakville East and West Secondary Plans have set the ground work.  The New Communities of Oakville are expected to house 50,000 people, create nearly 35,000 jobs, and include residential, commercial, employment, institutional and natural open spaces.  Situated in Oakville’s north end, this area is one of the last remaining areas designated for residential development within the Town.  The co-owners intend to participate in Halton Region’s 2018 allocation program in order to secure their future entitlement to the required servicing and infrastructure for the project site.     

"This acquisition furthers our 2016 investment strategy to target high-quality residential properties in the low-rise market.  As demand for available developable residential land across the GTA continues to grow, the low-rise market in established areas like Oakville is expected to remain robust," said Alex Riajskikh, Director, Private Capital Markets of Greybrook Realty Partners.

The portfolio of low-rise development holdings managed by Greybrook Realty Partners includes over 700 acres of land in Southern Ontario.  The development of these properties is projected to result in the completion of nearly 4,000 single-family homes in the Greater Golden Horseshoe region.

About Greybrook Realty Partners Inc.

Greybrook Realty Partners offers investors the unique ability to partner with top-tier North American real estate developers and share in their value creation activities.  In addition, Greybrook Realty Partners provides asset management and advisory services to investors and landowners, respectively.  Greybrook Realty Partners and its affiliates have been involved in the creation, development, construction and management of over 50 real estate projects which are expected to result in the development of over 15,000 residential and commercial units.   

This news release contains forward-looking statements that are based on management’s current expectations and are subject to known and unknown uncertainties, which could cause actual results to differ from those contemplated or implied by such forward-looking statements. Greybrook is under no obligation to update or revise any forward-looking statements contained herein, whether as a result of new information, future events or otherwise.

Resource: http://www.econotimes.com

Ellington Properties announces 14 new projects to add over 2,200 residential units in Dubai

First project in Jumeirah Village Circle is among four developments that have already broken ground

Organisation led by Dubai property industry veterans Robert Booth and Joseph Thomas
Dubai, UAE: Ellington Properties - a Dubai-born design-led boutique property development company that develops bespoke and beautiful high-quality homes - today announced its project pipeline of 14 developments in Dubai. The new projects will add over 2,200 residential units including apartments, townhouses and villas.

The company, jointly set up by industry veterans and joint managing directors Robert Booth and Joseph Thomas, already has over 3.6 million square feet in gross floor area under design and construction. The firm undertakes the full spectrum of development services from design to construction, advisory and rental unit development.

At a media roundtable, Booth said: "Dubai has evolved as a new global city all within the space of 10 years during which over US$85 billion was invested in infrastructure projects. Simultaneously, the Emirate's population grew from 1 million in 2000 to over 2.5 million in 2015.
"The city will be home to over 3.2 million people by the time Dubai hosts the Expo 2020. The next four years will also witness an increase in the number of discerning customers who appreciate design and quality over price points. Ellington fills that space."

Booth, who has been involved with the development of several iconic projects such as Dubai Marina, Emirates Hills, Arabian Ranches and Downtown Dubai, said that Ellington was set up to develop residential projects for discerning customers who appreciate design - from first principles to last detail. Benchmarked against the world's best, the firm has drawn the best international professionals to create a company that has design in its DNA.

"The visionary foresight of the leadership will continue to drive the growth of Dubai, which will continue to flourish in every aspect," explained Booth.

He added: "According to the recent Knight Frank survey, Dubai is now ranked at number 5, up from number 7 in 2014, on the list of the most visited cities in the world. Knight Frank also ranks the city number 1 in terms of a global lifestyle review while Forbes ranks it the 7th most influential city in the world. These reflect the positive sentiment shared by people around the world about the city. Dubai will continue to attract investment in its infrastructure and real estate, and Ellington will contribute to that space through highly desired but affordably priced projects."

Ellington Properties unveiled its first project, Belgravia, in Jumeirah Village Circle which is a G+4 residential building with 181 modern one, two, and three bedroom units. The homes sit on a beautifully landscaped 100,000 square feet land, with amenities including a swimming pool, gym and indoor and outdoor kids play area. Construction will be completed in December 2016.

"We have crafted each home with great attention to details, striking a tasteful balance between classic elegance and cutting-edge design and integration," said Joseph Thomas. "These homes will set a benchmark in property development and the home warranty we offer will redefine the after-sales market.

"We are a customer-focused organisation with an eye for detail. We launch our projects for sale only after we attain significant construction milestones. This ensures complete transparency in all our operations, adding to investor confidence," added Thomas.

Ellington has three other projects that have commenced construction activity - DT1, a 17-storey tower with 130 studio, one to four bedroom apartments in Downtown Dubai; The Ellington Collection, a set of high-end luxury villas on Palm Jumeirah, and Belgravia II, a G+4 residential building with 188 modern studio, one, two and three bedroom units in Jumeirah Village Circle. All projects have broken ground with Belgravia having topped out and ready to welcome its first residents in the fourth quarter of this year.

The company has also won industry recognition with DT1 bagging the 'Best Residential High Rise' honour at the 2015 Arabian Property Awards.

Ellington has also finalised its plan for affordable rental units development programme which will see over 10,000 units being developed by 2020.

About Ellington Properties:
Founded in 2014, Ellington Properties endeavours to craft beautiful environments for exceptionally high-quality lifestyles. Inspired by art and reflective of their owners' aspirations, Ellington residences are classic in feel but contemporary of vision.

Ellington's current projects include high-rise luxury residences and multi-family communities in Dubai, located in the prestigious Downtown Dubai, Palm Jumeirah or the upcoming Jumeirah Village Circle.

Resource: https://www.zawya.com

PNB Housing raises Rs 500 cr for green residential projects

New Delhi, Apr 6 () PNB Housing Finance has raised Rs 500 crore by issuing bonds to World Bank arm IFC for funding its green residential projects.

"PNB Housing Finance has issued secured fixed rate NCDs to International Finance Corporation (IFC) to raise Rs 500 crore for funding green residential projects", the company said in a release today.

It has become the first housing finance company (HFC) to successfully issue green bonds, the company added.

The funds will be used to finance green residential projects which are certified by recognised green building certification standards, including EDGE -- certification programme developed by IFC.

"This will further give a fillip to our intent to develop a committed green lending practice in the sector for a sustained growth of green loan portfolio," said Sanjaya Gupta, Managing Director, PNB Housing.

Environment conservation is a priority area and the end users are also realising the need for creating healthier neighbourhoods, he said.

"As this fund will be exclusively used to support investments in green energy efficient buildings, the same will help reduce greenhouse emissions and to curb pollution, thus, helping us to establish a market and an ecosystem for green housing construction in India", said Jayesh Jain, Chief Financial Officer of the company.

PNB Housing has pre-approved more than 62 green projects across Delhi-NCR, Mumbai, Pune and Bengaluru among others.
The retail exposure towards green buildings is already around Rs 250 crore, the company further said. KPM SBT SA

Resource: http://timesofindia.indiatimes.com

Kalpataru to develop residential project in Hyderabad

Hyderabad: Kalpataru Ltd will develop a premium residential project in Hyderabad, eight years after it bought land in the city.

The company had in 2008 bought 9.5 acres of land at Sanath Nagar, near the old Bombay highway, for Rs.80 crore. It had acquired this land from British Oxygen. It could, not, however go ahead with the projects because of the political turmoil that prevailed then.

The residential project , Kalpataru Residency, with 576 apartments will be priced at Rs.4,176 per square foot, it said on Thursday. Of the 9.5 acres it has, Kalpataru would use 5.5 acres for the project, to be ready in three years.

“We always wanted to enter Hyderabad because of the good infrastructure here. There has been a lull in the market but now the realty segment seems to be in the growth phase again,” said Narendra Lodha, director of sales and marketing at Kalpataru.

Resource: http://www.livemint.com