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    Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Egypt’s food industries contribute 24.5% of GDP

    Egypt’s food industries contribute 24.5% of GDP

    $36mln contract for construction of Duqm fisheries complex

    $36mln contract for construction of Duqm fisheries complex

    Ministry signs agreement to support Oman’s honey industry

    Ministry signs agreement to support Oman’s honey industry

    Local, Italian companies partner up to establish food retail chain in Egypt

    Local, Italian companies partner up to establish food retail chain in Egypt

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      Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

      Egypt’s food industries contribute 24.5% of GDP

      Egypt’s food industries contribute 24.5% of GDP

      Profits at top Saudi banks jump 17.6% in Q1

      Profits at top Saudi banks jump 17.6% in Q1

      GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

      GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      New study reveals that UAE is most competitive economy in the Arab world

      New study reveals that UAE is most competitive economy in the Arab world

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      • CES 2017
      • Election Results
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      Oman Construction Equipment Industry to 2028

      Oman Construction Equipment Industry to 2028

      $36mln contract for construction of Duqm fisheries complex

      $36mln contract for construction of Duqm fisheries complex

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      Madayn working on major Oman industrial city projects

      Madayn working on major Oman industrial city projects

      Foundation stone laid for new 700-bed hospital is Salalah, Oman

      Foundation stone laid for new 700-bed hospital is Salalah, Oman

      Iraq set to award new Faw Port deals

      Iraq set to award new Faw Port deals

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        Suez Canal expects US$3.5 billion in revenues in H1

        Suez Canal expects US$3.5 billion in revenues in H1

        UAE and Egypt’s consortium to buy African renewables firm Lekela Power

        UAE and Egypt’s consortium to buy African renewables firm Lekela Power

        Fitch revises Saudi Aramco’s outlook to positive from stable

        Fitch revises Saudi Aramco’s outlook to positive from stable

        Investments in renewables in Egypt reach LE6 bn: Official

        Investments in renewables in Egypt reach LE6 bn: Official

        Egypt signs 8 gas exploration contracts worth $934mn over 15 months

        Egypt signs 8 gas exploration contracts worth $934mn over 15 months

        JGC lands $3.7bn Iraq refinery upgradation project deal

        JGC lands $3.7bn Iraq refinery upgradation project deal

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        • Hospitality

          Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Saudi to be among world’s big leisure tourism hubs by 2030

          Saudi to be among world’s big leisure tourism hubs by 2030

          Qatar’s hospitality sector peaks despite turbulent 2020

          Qatar’s hospitality sector peaks despite turbulent 2020

          Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

          Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

          Staycations to stimulate Qatar’s hospitality sector

          Staycations to stimulate Qatar’s hospitality sector

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        • Agrofood
          • All
          • Agriculture
          • Environment
          • Food

          Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Egypt’s food industries contribute 24.5% of GDP

          Egypt’s food industries contribute 24.5% of GDP

          $36mln contract for construction of Duqm fisheries complex

          $36mln contract for construction of Duqm fisheries complex

          Ministry signs agreement to support Oman’s honey industry

          Ministry signs agreement to support Oman’s honey industry

          Local, Italian companies partner up to establish food retail chain in Egypt

          Local, Italian companies partner up to establish food retail chain in Egypt

          Trending Tags

          • Business & Economy
            • All
            • Business
            • Economy
            • Finance
            • Industry
            • Technology
            • Trade
            • Transport & Logistics

            Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

            Egypt’s food industries contribute 24.5% of GDP

            Egypt’s food industries contribute 24.5% of GDP

            Profits at top Saudi banks jump 17.6% in Q1

            Profits at top Saudi banks jump 17.6% in Q1

            GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

            GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            New study reveals that UAE is most competitive economy in the Arab world

            New study reveals that UAE is most competitive economy in the Arab world

            Trending Tags

            • CES 2017
            • Election Results
            • eSports
          • Construction
            • All
            • Infrastructure
            • Real Estate
            Oman Construction Equipment Industry to 2028

            Oman Construction Equipment Industry to 2028

            $36mln contract for construction of Duqm fisheries complex

            $36mln contract for construction of Duqm fisheries complex

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            Madayn working on major Oman industrial city projects

            Madayn working on major Oman industrial city projects

            Foundation stone laid for new 700-bed hospital is Salalah, Oman

            Foundation stone laid for new 700-bed hospital is Salalah, Oman

            Iraq set to award new Faw Port deals

            Iraq set to award new Faw Port deals

            Trending Tags

            • Energy
              • All
              • Oil & Gas
              • Power & Electricity
              • Renewable Energy
              Suez Canal expects US$3.5 billion in revenues in H1

              Suez Canal expects US$3.5 billion in revenues in H1

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Investments in renewables in Egypt reach LE6 bn: Official

              Investments in renewables in Egypt reach LE6 bn: Official

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              JGC lands $3.7bn Iraq refinery upgradation project deal

              JGC lands $3.7bn Iraq refinery upgradation project deal

              Trending Tags

              • Hospitality

                Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Saudi to be among world’s big leisure tourism hubs by 2030

                Saudi to be among world’s big leisure tourism hubs by 2030

                Qatar’s hospitality sector peaks despite turbulent 2020

                Qatar’s hospitality sector peaks despite turbulent 2020

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Staycations to stimulate Qatar’s hospitality sector

                Staycations to stimulate Qatar’s hospitality sector

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              Dubai’s property market sees price adjustments in some segments

              Oxford Business Group

              November 17, 2015
              in Real Estate
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              A growing oversupply in some segments of Dubai’s residential real estate sector is encouraging developers to reposition their offering towards mid-range buyers, as the market witnesses broader price adjustments.

              While the sector continues to emit mixed messages, demand for mid-market housing appears to be strengthening, with prices for apartments virtually unaffected by declines in other segments in the first half of 2015, according to a recent report by property consultancy Cluttons.

              Overall, residential property prices in Dubai fell by 12.2% in the twelve months to June, real estate consultancy Knight Frank reported in early September. It was the steepest decline recorded among the 56 residential markets surveyed, signalling that the regulatory actions taken by the federal authorities, including the introduction of mortgage caps, could be having an impact.

              Mortgage limits
              In October 2013 the UAE authorities set minimum deposit ratios for mortgages, aimed at limiting market volatility and lending exposure to the sector. However, many in the industry believe the mortgage caps could now be exerting downward pressure on demand, as potential property buyers defer purchases until they can raise enough cash for the deposit or opt for less costly units.

              Under the rules, expatriates are required to deposit a minimum of 25% for units valued at Dh5m ($1.36m) or less, rising to 35% for those priced above Dh5m ($1.36m), according to local press coverage of the reforms. Mortgages have also been capped for nationals, who are obliged to make 20% or 30% deposits, respectively.

              At the same time, the Dubai Land Department doubled property registration fees, from 2% of a unit’s sales value to 4%, according to local media reports.

              Global variables
              External factors, such as weaker global economic growth, lower oil prices and foreign exchange concerns in other markets have also taken their toll on investor sentiment.

              Russian, European, Indian and now Chinese buyers have all been affected by currency fluctuations, as the dirham, which is pegged to the US dollar, has strengthened in line with the greenback.

              Weaker demand at the high-end of the market is also the result of a surge in new housing stock – a response to the 15% increase in average residential real estate values over the past two years, Cluttons noted.

              In its “UAE Property Report 2015”, published in early September, Cluttons reported that there were already plans to build 41,000 units so far this year – 20,000 of which are likely to be delivered by the end of 2017.

              Shifting demand
              The industry is already seeing shifts in demand as the market adjusts. Figures indicate that the middle segment, led by apartments, is strengthening, as the mortgage caps affect demand for higher-priced property.

              Average prices in the segment fell by a negligible 0.6% between January and June, though the decline was steeper for some luxury units, according to Cluttons. For example, one-bedroom apartments at the top end of the market fell by around 4.4% over the period, the agency reported.

              Although some segments are seeing oversupply, mid-market demand has remained consistent. Ahmad Al Marri, general manager at Union Properties, told OBG, “While Dubai is facing a 10-15% increase in the supply of housing, particularly in the high-end segment, there is still demand for affordable and mid-range housing.”

              Ali Tumbi, CEO of Aqua Properties, shared this view. “We might see a 15% decrease in sales in 2015/16, but housing demand for the middle class is still increasing.” However, he argues that prices could continue to drop due to regional instability.

              “Despite some reports suggesting Dubai’s property market was facing another major setback, the drop of sales in the first half of the year was largely due to external economic variables,” Ziad Al Chaar, managing director of Damac Properties, told OBG.

              Explaining the somewhat mixed messages coming out of the sector, Al Chaar added, “It’s a very uneven market at the moment, but it is also creating space for growth and the market will improve by the end of the year.”

              Mid-market opportunities
              Some local developers traditionally known for high-end and luxury projects are now actively pursing mid-market developments. With Dubai Municipality’s proposal earlier this year to introduce mandatory affordable housing quotas for all new residential developments, the segment could see even greater growth in the coming years.

              According to local media, Damac is constructing several hundred affordable units at its 55m-sq-foot AKOYA Oxygen development, while Emaar Properties is considering further mid-range projects like Mira, where three-bedroom homes sold for a starting price tag of under Dh1m ($272,000) in 2013.

              Union Properties launched its own housing project in Green Community West in late October. The company plans to sell more than 200 three- and four-bedroom townhouses and duplex apartments, priced at Dh9150-12,900 ($2500-3500) per sq metre, according to the company, with delivery scheduled for 2017.

              Fred Durie, CEO of Dubai-based property developer Nshama, has also seen a strong increase in demand for mid-market homes, although he argues that this trend has not affected the quality of the real estate offering.

              “Customers are discerning, and they consider a number of factors including build quality in making an investment decision,” he told OBG. “As end-use homes, they are particularly mindful of the amenities, layout and location. Mid-market homes provide great value for their money.”

              Nshama’s flagship project Town Square, a multi-purpose development built over 2.9m sq metres, will feature several hundred affordable units, alongside more than 600 retail outlets, a 1.3-km stretch of cafés and restaurants, and 154,000 sq metres of parks.
              Oxford Business Group
              17 November

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