The Magazine Cityscape December 2012

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Information about The Magazine Cityscape December 2012
Real Estate

Published on February 18, 2014

Author: annacityscape

Source: slideshare.net

Description

A Middle East perspective on global real estate
Issue December 2012

PHASE ONE SOLD OUT Register online @ www.mnhd.com or call us on Egypt UAE KSA 16750 800 02000 369 800 8200 368 Visit our new sales center: Extension of Thawra st., Suez Road & Ring Road Intersection, Cairo, Egypt

DECEMBER 2012 THE CITYSCAPE ANNUAL REAL ESTATE REVIEW Our comprehensive review of the real estate markets of the UAE, Qatar, Egypt, Saudi Arabia and Turkey reveals positive growth for the entire region. SPECIAL FOCUS: SOUTH AFRICA Africa’s economic powerhouse stands out as an internationally preferred location for doing business due to its undoubted growth opportunities. GLOBAL INVESTMENT OUTLOOK 2013 Licensed by International Media Production Zone Who are the winning cities in today’s international real estate investment market? We highlight this year’s top markets and take a look at the year ahead. SPECIAL SUPPLEMENT: INVEST IN RUSSIA Investment overview Tourism Retail Russia & the UAE

CALENDAR OF EVENTS Jeddah Jeddah Centre for Forums and Events, Jeddah, Saudi Arabia 2 ~ 4 March 2013 Egypt Cairo International Convention and Exhibition Center, Cairo, Egypt 28 ~ 31 March 2013 Abu Dhabi Abu Dhabi National Exhibition Centre, Abu Dhabi, UAE 16 ~ 18 April 2013 Qatar Doha Exhibition Centre, Doha, Qatar 27 ~ 29 May 2013 Asia Shanghai Convention Center, Shanghai, China 4 ~ 6 September 2013 Latin America Amcham Business Center, Sao Paulo, Brazil 1 ~ 3 October 2013 Global Dubai International Convention & Exhibition Centre, Dubai, UAE 8 ~ 10 October 2013 Riyadh Riyadh International Exhibition Centre, Riyadh, Saudi Arabia 8 ~ 10 December 2013 Your Guide To Emerging Real Estate Markets www.cityscape.org

Hyde Park Properties for Development is a leading developer of integrated mixed-use developments, with a unique vision to create truly world class communities that contain within their boundaries every service and amenity a modern resident aspires. The Company’s flagship development is Garden Heights a breath-taking community being constructed in the booming suburb of New Cairo. The 6 million sq.m mixed use integrated development includes Hyde Park villas community, elite detached and attached villas, Centre Ville a world class apartment’s community inspired by the 1920’s downtown Cairo. Park Avenue regional shopping destination offers a unique unmatched shopping experience. The lung of Garden heights is the unique 140 feddans privately owned and landscaped park, the largest in Egypt. The project also comprises world class leisure and entertainment propositions as well as sporting and educational facilities that transform Garden Heights into a real destination. “Despite the global recession in 2009 as well as the post-revolution economic slowdown, honoring our commitments and serving our clients continues to be on top of our priorities. We not only started delivering our units in 2012, but are also getting ready to launch new residential and commercial products. “We fully expect Garden Heights to be the destination of choice for discerning residents looking for a unique residential experience” said Magued Sherif, CEO of Hyde Park.

CONTENTS 26 5 Editor’s letter LATEST NEWS Regional 8 • Al Nakheel Tower Bahrain launched • Al Wa’ab City villas construction commences 9 • Aldar financial results Q3 2012 • Dubai’s CRE sector gains traction 10 • Emaar & Al Futtaim to develop Cairo Gate • Dubai properties transactions hit AED 83bn 11 Northern Riyadh development to accommodate 700,000 people Asia 24 FDI in India’s multi-brand retail allowed 25 • Hong Kong the world’s most expensive city • Asia growth fuels global student housing demand Europe 33 Prime London and the rest 34 • Madrid office market take-up boost Americas 40 US high-tech job growth fuels office demand 41 • Miami attractive to international buyers • US CBD office leasing up in Q3 MIDDLE EAST INSIGHT 12 Cityscape Annual Real Estate Review Our comprehensive review of the real estate markets of the UAE, Qatar, Egypt, Saudi Arabia and Turkey reveals positive growth for the entire region. ASIA INSIGHT 26 Japan Although the earthquake of March 2011 brought the local real estate market to a temporary standstill, investor confidence soon returned to the country. 31 Philippines BPO industry boosts residential and office sector. 4 I CITYSCAPE I DECEMBER 2012 38 EUROPE INSIGHT 35 Poland Perceived as a stable country resistant to the economic crisis with high GDP growth, Poland continues to be an important real estate investment destination in the CEE region. 38 Spain A recent drop in house prices has sparked a surge in Scandinavian buyers who are keen to snap up bargain homes along Spain’s sunny coastlines. AMERICAS INSIGHT 42 44 Canada Canada’s positive economic outlook is good news for the country’s retail and residential markets; Toronto seems to be the city of the moment. Mexico Positive manufacturing data and promising automotive production keep industrial investment and rental growth robust in the Southern American nation. 52 56 60 Sustainability In the light of advancing global climate change, Cityscape magazine takes a look at the concept of sustainable real estate development in then UAE, current regulations and developments. Retail Brazil’s retail sector is set for substantial expansion over the next few years as the country prepares for the 2014 World Cup and 2016 Olympic Games. INDUSTRY PAGES 66 Legal commentary 67 A day in the life of…a real estate valuations director 68 Movers & Shakers 69 Event review: Cityscape Global 2012 70 Cityscape events Cityscape Riyadh 2012, Cityscape Awards for Real Estate in Saudi Arabia, Real Estate Training Courses 71 Conference preview: Riyadh Real Estate Summit 2012 72 In the next edition SPECIAL FOCUS 48 62 South Africa Transparent market fundamentals and emerging economic strength make South Africa the location of choice for investors seeking foothold in sub-Saharan Africa. The world of real estate in 2013 With the New Year just around the corner, we take a look at the winning cities in today’s international real estate investment market and provide an outlook for 2013. REGULAR FEATURES 52 Architecture Global design firm Gensler draws on the Middle East’s unique cultural heritage to deliver innovative architectural concepts in the region. Invest in Russia A special supplement covering the Russian real estate market with a focus on investment, retail and tourism.

EDITOR’S LETTER A s the year is slowly coming to an end and we take a look back at the dynamics that shaped global real estate markets over the last 12 months, it becomes clear that this year has been decisive in restructuring the world’s property environment. In our October edition we featured a number of global markets which have benefitted from the economic uncertainty in the Eurozone and highlighted several emerging economies that have shown remarkably resilient in the wake of the global economic crisis. In this issue we take a closer look at the performance of a selection of Middle Eastern markets which have shown outstanding growth this year despite the world’s turbulent events. Our Cityscape Annual Real Estate Review traces the major factors that impacted on real estate development in the region and reveals some excellent news. Take Dubai for example, a place that experienced a sudden market crash in 2008 with property prices falling as much as 50 percent. This year, the emirate has witnessed a solid rebound in prices as economic recovery is well underway. In Turkey, a country which has seen its real estate markets boom across all sectors over the last few years, the introduction of a new law easing property purchases by foreigners is expected to further boost already strong real estate development and investment in the country. In Egypt, with the stabilising political situation following the election of President Mohamed Morsi in June, the market is finally seeing a welcome return of more settled conditions and investor confidence is returning to the country on the Nile. In other global regions, Mexico is emerging as an alternative investment destination as opposed to the US. Positive manufacturing data and promising automotive production are expected to keep industrial investment and rental growth robust while the country’s hospitality sector is likewise experiencing a surge in investments. In Asia, the Philippines have made headlines this year with increased demand and construction activity in the country’s residential sector, fuelled by significant growth of the Business Process Outsourcing industry. In the first quarter this year, the Philippines had the highest GDP growth in the ASEAN region (6.4 percent) and came in second after China across all Asia. In Europe, the markets have largely been overshadowed by the current regional crisis, however not without a few interesting developments. Currently, investor interest is strong in Poland, especially in the country’s retail sector. Supported by higher GDP growth than in most European countries, a strong industrial base and backed by a stable political situation, sentiment is expected to remain highly positive over the next few years. This month, our special focus rests on South Africa. Historically perceived as a ‘dark continent’ not suitable for doing business, Africa is increasingly being viewed as an emerging investment destination and crucial growth market. South Africa is the continent’s most transparent market and the arrival of international real estate service providers in the country is expected to positively influence the level and quality of information about local market fundamentals. In addition to our regular global coverage, this edition features a special supplement dedicated to the Russian real estate market. Russia recovered at an impressive speed from the effects of the global economic downturn; 2011 saw record investment volumes in the country’s CRE sector and today, vacancy rates in the warehouse and retail segment have already reached pre-crisis levels. In the light of advancing global climate change and the undeniable impact of real estate development on the environment, we have also dedicated a special feature to green building practices in the UAE and look at current regulations and pioneering developments in the region. Given the immense success of the Cityscape Global exhibition which was held in Dubai in October, we are particularly looking forward to our next event in Saudi Arabia. Cityscape Riyadh, taking place from 9 – 11 December 2012 at the Riyadh Exhibition Centre, will once again bring together a myriad of real estate investors, developers, government authorities, architects and other real estate professionals from around the globe in Saudi Arabia’s leading real estate event. We hope you enjoy the read. Anna Amin Editor Project Director Simon Cole Editor Anna Amin Design Davis Mathai Advertising Adam Fox Contributors Anna Amin, Simon Cole, Rohan Marwaha Although every effort is made to ensure the accuracy of information contained in this magazine is correct, Cityscape cannot be held responsible for any errors or inaccuracies contained within the publication. All information contained in the magazine is under copyright to Cityscape and cannot be reproduced or transmitted in any form without first obtaining written permission from the publisher. Partnership Enquiries: Advertising Enquiries: Editorial Enquiries: Simon Cole Tel: +971 (0) 4407 2640 Adam Fox Tel: +971 (0) 4408 2801 Anna Amin Tel: +971 (0) 4408 2898 Email: simon.cole@informa.com Email: adam.fox@informa.com Email: anna.amin@informa.com Cityscape Media, Informa Exhibitions, P.O. Box 28943, Dubai, UAE Published by: Nicholas Publishing International FZ LLC Front cover design: LUCKY YOU! design® www.luckyyou-design.com DECEMBER 2012 I CITYSCAPE I 5

The Aqaba Special Economic Zone Authority The vision of transforming Aqaba into a world-class business hub and leisure destination has become reality. ASEZA The Aqaba Special Economic Zone Authority (ASEZA) is the financially and administratively autonomous institution responsible for the management, regulation, and the development of the Aqaba Special Economic Zone (ASEZ). Six ministerial – level commissioners headed by a Chief Commissioner, appointed by the Cabinet and reporting to the Prime Minister, each responsible for a major area of regulatory or operational activity and running the ASEZ, and is vested with zoning, licensing, and other regulatory powers that distinguish it from the rest of Jordan. ASEZA is a service – oriented organization offering one – stop assistance covering all investment needs. Ayla project 75 hectares of manmade lagoons An Introduction To ASEZA Our objective is to create a sound and attractive business environment in Aqaba that will provide a competitive operational base for firms seeking to expand markets, while enhancing their global positioning. The Aqaba Special Economic Zone (ASEZ) was launched in 2001 as a duty-free, low tax multi-sector development zone encompassing the total Jordanian coastline (27 km), the sea-ports of Jordan, an international airport, and the historical city of Aqaba with a current population of 115,000 people. It encompasses an area of 375 Km2 and offers global investment opportunities in an excellent business environment ranging from tourism to recreational services, from professional services to multi-modal logistics, from value-added industries to light manufacturing. Moreover, to accelerate the development of the Zone, ASEZA and the Government of Jordan also launched at the beginning of 2004, the Aqaba Development Corporation (ADC) to be the central development corporation for the ASEZ. ADC owns the port, airport and strategic parcels of land as well as the development/ management rights for these assets as well as for key infrastructure and utilities. ADC is mandated to develop ASEZ; build new infrastructure and required superstructure, expand existing ones; and create business enablers for the zone. ADC also manages and operates its key facilities; all through leading private sector developers and operators. With ASEZA as the regulator of the zone, ADC has also the responsibility to implement the ASEZ Master Plan in a manner that ensures integrated development and transforms Aqaba into a leading business and leisure hub on the Red Sea.

ADVERTORIAL Marsa Zayed Project Leisure Destination Aqaba is a naturally attractive tourism destination. Its most precious coral reefs and unique marine environment make it a must for divers and those who enjoy water sports. Furthermore, its proximity to Petra and the beautiful landscape of Wadi Rum (Jordan Golden Triangle) makes it a convenient and relaxing stop on visitors’ itineraries. Aqaba Special Economic Zone Authority (ASEZA), fully realize Aqaba’s potential and have anticipated in the master plan that no less 50% of investment will take place in the tourism sector Investments attraction • 375 SQKM of investment opportunities within a duty-free zone ranging from tourism to recreational activities, from professional services to multimodal logistics, and from value added industries to manufacturing. • Ability to expand markets in the Middle East & North Africa region (Gateway into Levant and the wider Middle East and connecting GCC with the Levant and North Africa). • A major trade hub and corridor for the reconstruction efforts in Iraq. • Ability to create pools of multinational work teams. • Ability to penetrate existing/new markets in a preferential manner (Free Trade access to the EU, US, Singapore and most Arab Countries and WTO member) • Multi-modal transport hub whereby investors/traders can bring goods & passengers by land, air or sea • Hub for regional distribution with free zone storage with full service seaports that handle all kinds of cargoes and an international airport which operates under an open skies policy. • Serviced land/facilities for light / medium manufacturing, warehousing, residential and commercial uses. Saraya Aqaba Master Plan Benefits of Doing Business in the ASEZ: The ASEZ enjoys a special fiscal regime, which is much milder than that of the rest of Jordan; any “Registered Enterprise” status in the zone confers the following benefits: • 5% income tax on income generated from activities inside the ASEZ or outside Jordan except for banking, insurance and land transport services. • Exemption form sales tax on final consumption of goods and services, except for: o 7% sales tax limited to final consumption of selected goods o 7% sales tax on hotel, restaurant and car rental services o Special variable tax on alcohol and tobacco o 7% tax on cement and steel for construction purposes • Duty-free import of goods in commercial quantities from the National Customs Territory and overseas (except cars) • Exemption from Social Service Tax • Exemption from Sales Tax on vast majority of goods and services • Exemption from annual land and building taxes on utilized property • Exemption from taxes on distribution of dividends and profits on activities in the ASEZ and outside Jordan. • No foreign equity restrictions on investment in tourism, industry, retail, and other commercial services (100% foreign ownership allowed) • No tariffs or import taxes on imported goods for individual consumption and Registered Enterprises • No foreign currency restrictions and full repatriation of profits and capital • Streamlined labor and immigration procedures (a project may employ up to 70% in foreign labor as an automatic right)

REGIONAL NEWS Al Nakheel Tower Bahrain reaches 40% occupancy just three months after completion E arlier this month, Cluttons announced the successful launch of Al Nakheel Tower in Manama, Bahrain, as demonstrated by high occupancy levels of 40%, just three months after completion, with further space currently under negotiation. The building, located in the Seef District, was handed over in August 2012 and comprises of over 5,600 sqm of commercial space. It has established itself quickly as the address of choice for a number of leading international firms, including Bahrain International Medicine, Majali Enterprises, Grant Thornton and Qatar Airways. Further discussions for increased space are underway with a selection of other potential tenants. Al Nakheel Tower has proven attractive to tenants due to its combination of competitive rates, option of fitted out space, flexible floor plates, quality finishing, a well-calculated car parking ratio including 120 car parking spaces and professional property management by Cluttons in Bahrain. In addition, the Seef District has established itself as a highly desirable office location due to its combination of easy access and good parking, which adds further to the popularity of Al Nakheel Tower. Harry Goodson-Wickes, head of country for Cluttons in Bahrain commented: “I’m very pleased that Cluttons has been appointed to manage the Al Nakheel Tower. This type of prestigious, well serviced development with a range of amenities is just what the current market demands and both the tenants and landlords will benefit from our dedicated property management expertise. There is such a strong appetite for this type of tower that we’ve managed to let almost half the available space within a matter of weeks from completion. We expect demand from tenants to continue to grow.” QATAR’S Al Wa’ab City celebrates the commencement of construction for Deluxe Villas A l Wa’ab City, one of the largest privately owned real estate developments in Qatar, last month has officially announced the re-launch of construction works for both Nour Al Wa’ab and Janayin Al Wa’ab Villas. As of October 1st, main contractor Arabtec started remobilisation and has resumed full construction work by the first of November 2012. Al Wa’ab City expects to deliver the first set of fully fitted villas by July 2013. Commenting on the announcement, Sheikha Hanadi Bint Nasser Al Thani, CEO of Al Wa’ab City said: “We are very pleased to announce this ground-breaking milestone towards project completion. After completing Al Wa’ab showrooms and launching of Al Wa’ab offices, the delivery of the villas represents Al Wa’ab City’s commitment towards the full vision of the project to create lifestyle senses where life is celebrated at its fullest. This step reflects the company’s growing stature as a credible business partner and a key player in Qatar’s economic diversification strategy. With strengthened rejuvenation, we renew our commitment to provide viable quality propositions of genuine value to Al Wa’ab residents, clients and partners.” As of now, the company started receiving individual and corporate requests for residential leasing and sales opportunities at Al Wa’ab City. The prime investment value is inherent in the villas’ high standards that are set in exclusive gated communities, inspired by Qatari architecture, designed with contemporary quality finishes, and complemented with high-end amenities. Nour A Waab Villas consist of 92 villas, with an area of 850 square metres each, with high quality finishes, fixtures and fittings, 5 master bedrooms, internal elevators, 3 car garages along with a private garden and a swimming pool. Nour Al Wa`ab private villas sit within secure, gated communities and are inspired by thoughtful Arabian architecture complemented by contemporary high-end finishes. Janayin Al Wa’ab Villas consist of 181 distinct 4 bedrooms villas, with an area of 450 square metres each, 2 car garages, offering a contemporary living environment with a subtle hint of Arabian architecture while encompassing quality finishes. Set amidst landscaped surroundings, the Janayin Al Wa`ab homes are the perfect setting for families to thrive within a secure, well-maintained environment, complemented by neighborhood facilities such as clubhouses, swimming pools, sports courts and children`s play areas. All villas will be maintained via the Al Wa`ab City facilities management service. Al Wa’ab City is planning to fully deliver the entire 273 villas within 2 years from today along with all recreational amenities. 8 I CITYSCAPE I DECEMBER 2012

REGIONAL NEWS Aldar reports strong financial results for third quarter of 2012 A t the beginning of this month, Aldar Properties PJSC, one of Abu Dhabi›s leading property development, investment and management companies, announced strong financial results for the third quarter of 2012 with revenue for the period of AED 1,604.5 million (Q3 2011: AED 3,132.9 million) and net profit of AED 205.7 million up 43% from AED 144.0 million during the same period last year. Revenues were driven mainly by the delivery and handover of 132 residential units, and 25 land plots at Al Raha Beach. The company continues to have strong ongoing revenue and cash flow visibility with AED 12.0 billion cash still to be received, and AED 2.6 billion of revenue still to be recognised from land sales at Al Raha Beach, following the three main asset sale agreements signed with the Government of Abu Dhabi between 2009 and 2011. Recurring revenues from investment properties and operating businesses were up 8% to AED 306.0 million in the third quarter (Q3 2011: AED 282.9 million) and broke through the AED 1.0 billion mark over the first nine months of the year. These were driven by increased occupancy year-on-year from the office portfolio, notably HQ, and maturing retail operations, in particular Gardens Plaza and IKEA. Aldar has ample working capital and liquidity to deliver on its business plan. At the end of the period, free cash balances were AED 888.2 million, in addition to available and undrawn liquidity of AED 3.2 billion through revolving credit facility agreed earlier in the year. The company’s ongoing programme of debt reduction followed a normal schedule of repayments during the quarter with AED 63.4 million repaid. A further AED 309.4 million will be retired on schedule in Q4. Aldar’s total borrowings stood at AED 14,429.3 million compared to AED 18,295.5 million as of 31 December 2011. As a result of the recent detailed valuation exercise relating to the potential merger with Sorouh Real Estate PJSC, the company has updated the valuation of certain of its assets to reflect current conditions. The company has therefore elected to write down the value of its assets by a net amount of AED 737.1 million reflecting principally impairments to its hotel assets that are partially offset by fair value gains on Yas Mall. As a further result of the valuation exercise, the Company has written back AED 431.5 million of excess accruals and recoverable costs, which had been written off in previous periods. Ali Eid AlMheiri, Chairman of Aldar Properties commented: “We are pleased to see that Aldar’s communities are starting to thrive as more customers occupy our developments. We are proud of our contribution to Abu Dhabi’s ongoing growth and that our established delivery record continues to produce stable cashflows and profits for our shareholders. We have moved from strength to strength – both financially and operationally – and remain well positioned to execute our business plan and confirm our position as Abu Dhabi’s premier developer.” Dubai’s commercial real estate sector gains traction in third quarter of 2012 P remier property services company Hamptons MENA has highlighted that commercial real estate in Dubai has gained traction in the third quarter (July to September) of 2012. Recording robust growth in commercial leasing deals and enquiries since the beginning of the third quarter, Hamptons MENA reports an increase in demand for office space in areas such as Downtown Dubai and Dubai International Financial Centre (DIFC). Among the key drivers of demand for commercial real estate are factors such as large corporations continuing to show interest in upgrading their premises with more flexibility in terms of leases, and limited new supply entering the market. “Large investors have started to draw their attention to the UAE’s property market, in particular the Dubai commercial property market as a source of stable returns,” said Niraj Masand, Head of Operations, Hamptons MENA. “Investors are more interested in buying commercial property that is currently occupied by tenants as a source of definitive returns on their investment.” “The growth trend of the commercial sector is a strong demonstration of Dubai’s positive growth across all sectors of its economy. The city is underlining its credentials as a tourism and business hub, and this is reflected in the strong demand for commercial space,” he added. Central business districts such as Downtown Dubai and DIFC have limited supply of single ownership space prompting companies to start looking at built to suit options. In line with global trends, occupier consolidation and portfolio optimisation remain the key focus in Dubai. Short term annual renewable leases have been replaced with long-term leases often in excess of three years, offering more security and consistency to both the tenant and the landlord. New commercial developments such as Emaar’s Boulevard Plaza in Downtown Dubai records strong demand, according to Hamptons MENA. High quality commercial towers such as Currency House 2 in DIFC, Emaar Square and The H Dubai Office Tower on Sheikh Zayed Road welcomed new occupiers. With restrictions on free zone businesses becoming less stringent and licensing made easier, a number of companies are taking advantage and relocating to offshore (free zone) areas. This has led to multinationals looking to rent commercial property. Earlier this year Dubai Economic Department (DED) had announced that it would implement a ‘120-days hassle-free license’ initiative, aimed to give businesses in Dubai a head start and promote the emirate’s competitiveness, by the end of 2012. The new initiative will allow investors to have their licenses issued immediately from DED depending on the risk factors of the intended business activity. This, in turn, is expected to further drive demand for commercial real estate in Dubai. DECEMBER 2012 I CITYSCAPE I 9

REGIONAL NEWS Dubai Properties transactions hit AED 83 billion in 9 months S Emaar and Al-Futtaim join forces to develop EGP 5 billion Cairo Gate A l-Futtaim Group and Emaar, the two UAE based international real estate giants, last month announced an initial intention to enter into an EGP 5 billion joint venture agreement to develop ‘Cairo Gate’, the largest lifestyle and entertainment development on an Emaar Misr property of 160 acres of prime land on the Cairo- Alexandria desert highway. Cairo Gate will not only cater to discerning shoppers from Egypt and the world over, but also to those who appreciate a trendy lifestyle that has come of age. While the mega shopping mall will be the centerpiece of the development, Cairo Gate will be complemented by an office park with world-class facilities including a luxury hotel, schools, medical facilities and residences ranging from townhouses to villas and apartments. Mr. Mohamed Alabbar, Chairman of Emaar Properties PJSC, said “We are proud of this partnership which will add tremendous value to the real estate and retail industry sectors at large, and we look forward to working together with Al-Futtaim Group and realising the full potential of this venture.” Commenting on the prospects of the Egyptian market, he added, “As we boost our continued development portfolio in the Egyptian market we also demonstrate our belief in Egypt, its economy and its people”. The first phase of Cairo Gate development will comprise a mall with a gross leasable area of 120,000 sqm, and will be anchored by Al-Futtaim’s retail brands such as IKEA, Marks & Spencer, Toys ‘R’ Us, ACE, Intersport, Guess, Esprit as well as a multitude of additional world-class shopping brands apart from restaurants, cafés and leisure outlets with a strong outdoor theme. Mr Omar Al-Futtaim, Vice Chairman and Group CEO said: “This agreement represents a significant and long-term partnership between Al-Futtaim Group and Emaar who are on a new path for growth in Egypt. The agreement demonstrates our confidence in the Egyptian economy and will raise Egypt’s profile as a nation focused on innovation, excellence, and dynamic sustainable development in the retail and real estate sectors. Our Cairo Festival City development is already making strong headway in establishing Egypt as Centrepoint for the North African retail industry. The joint venture will further demonstrate our firm commitment to not only enhance Egypt’s development, but amplify the country’s leadership positioning within the regional and global economy.” Mr Al-Futtaim added: “This is clear evidence to our positive view on the Egyptian economy and we are confident of the investor-friendly direction of the Egyptian Government especially in resolving any investors’ disputes.” Cairo Gate has a frontage of one kilometre along the Cairo-Alexandria Desert Road near the Smart Village commercial precinct, and will complement the residential, hospitality and commercial components of Emaar Misr’s development. The primary catchment areas including 6 October City and Giza have a population of over six million residents. 10 I CITYSCAPE I DECEMBER 2012 ultan Butti Bin Mejrin, Director General of the Dubai Land Department (DLD) announced last month that the total value of property transactions in Dubai reached more than AED 83 billion in the first 9 months of 2012. The transactions were documented officially by the DLD’s Real Estate Development Department and consisted of 27,452 transactions dominated by sale and mortgage, and fewer number of usufruct rights registration (Musataha), donations and other types of property transactions. The property transactions have become more mature and the investors are now much more aware. The market offers multiplechoices and Dubai property sector showed high flexibility in dealing with investors’ requirements and trends during the first 9 months, most notably first time investors who seek to benefit from investment opportunities that emerged due to price correction witnessed by the market over the past two years, according to Bin Mejren. He noted that the price indication took a upward trend during the past few months due to the demand and purchase transactions of land, villas and apartments in certain distinguished projects in Dubai. The lion›s share of total transactions was dominated by sale with 20,925 transactions at the value of more than AED 43 billion. The sale accounted for 52% of the total transactions in the first 9 months of this year while mortgages accounted for 44% of the total transactions at the value of AED 36.3 billion through 5,042 transactions. The director general of DLD added that 1,485 transactions were registered as usufruct rights (Musataha), donations and other types of property transactions at the value of AED 3.7 billion which represented 4% of the total transactions. The 9 months results showed 65% of transactions were on land sale and mortgage, while apartments’ sale and mortgage exceeded the same transactions on buildings and villas by 86%. He noted that the total number of land sale and mortgage of all kinds reached 5,488 transactions at more than AED 54 billion. There were 3,327 Land sale transactions of various types worth more than AED 20.5 billion, while land mortgage transactions were around 1,636 worth more than AED 30.9 billion. The total number of sale and mortgage transactions on buildings and villas in the same period hits 1,451 transactions worth more than AED 4 billion, while the number of building sale reached 917 buildings worth more than AED 2 billion. The total number of mortgage transactions on buildings reached 487 building worth more than AED 1.6 billion. The sale and mortgage on residential and commercial units reached 20,513 transactions valuing at around AED 25 billion whereas the sale transactions on units reached 16,681 transactions worth AED 2 billion while mortgage on other units reached 2919 at the value of AED 3.6 billion. The vacant lands dominated the land transactions with 57% compared to lands with properties built on them. The transactions on units exceed those on buildings by 86%, according to Bin Mejren. The DLD recorded Wadi Al Safa 5 as the most traded areas in term of a number of land transactions with 403 transactions. Burj Khalifa tops list of most traded areas in units terms with 3,305 sale transactions. While in the land mortgage transactions, Al Barsha South First was the most traded areas with 203 transactions whilst the Burj Khalifa saw 442 apartment mortgage transactions.

REGIONAL NEWS Urban development projects in Northern Riyadh to accommodate 700,000 people by 2030 Real estate investments in Northern Riyadh are expected to grow stronger in line with the increasing focus across the region on residential and urban development, according to a recent report released by Injaz Development Co. The promising investment outlook coincides with the newly enacted Saudi Real Estate Mortgage Law, which has been introduced to provide funding for urban development projects across Saudi Arabia and ultimately boost the Saudi economy. The report has emphasised the importance of the Real Estate Mortgage Law in sustaining the long term urban development initiatives being undertaken in Northern Riyadh and across the country, particularly in light of higher growth rates being observed in the real estate industry. Industry analysts have further pointed out that the real estate mortgage system will serve as a pillar for strategic Public Private Partnerships (PPP) in the country. PPP has been recognised as a driving force behind the growing number of residential and urban development projects across the country, which are vital to address the burgeoning demand for residential property, particularly with respect to the Kingdom’s fast growing population of which 60 per cent are youth. The report further pointed out that real estate development activities have achieved positive growth overall across the country, with Northern Riyadh’s real estate sector growing by 43.42 per cent, based on Jones Lang LaSalle’s Riyadh Real Estate Market Performance Index Q2 2012, triggering radical changes in its urban and real estate landscape. The High Commission for the Development of Arriyadh (HCDA), on the other hand, has announced major developments in Northern Riyadh following the completion of several key infrastructure projects, including road networks, residential facilities and hospitality developments. Some of the latest projects that have been undertaken in Northern Riyadh include the Prince Sultan Bin Abdulaziz Humanitarian City and the 3.2 square kilometre Prince Salman Park in Banban. As part of its commitment to promote Northern Riyadh as one of the most attractive investment destinations worldwide, Injaz Development Co. has been actively involved in projects that complement ongoing efforts to achieve a well balanced, sustainable urban development. The Riyadhbased master developer and property investment firm has launched a number of projects that support the urban development strategy being implemented in Northern Riyadh. The urban development projects in the region ultimately aim to accommodate the needs of its rapidly growing population, which is expected to reach over 700,000 by 2030. Moreover, it will create more job opportunities for residents and generate greater economic contributions from the private sector. Taking advantage of the favorable market conditions in Northern Riyadh, Injaz has revealed plans to launch new projects in the region, including Al Gamra 10, one of the four blocks in Al Gamra Project – a 2.5 million sqm project with a strategic location in Northern Riyadh. With 403 land plots spread over a total area of 566,000 sqm, Al Gamra 10 is an integrated project offering ready-made residential, commercial and investment building blocks that are specifically designed to meet the needs of residents and businesses. The project will include infrastructure for electricity, water, lighting and road networks, making it an ideal residential destination in the region. Omar Al-Kadi, CEO and Managing Director, Injaz Development Co., said: “The real estate boom in Saudi Arabia is mainly driven by the newly introduced Real Estate Mortgage system, which is part of a five-point system to generate real estate funding in the country. The favorable market outlook as well as several other influential factors will stimulate Omar Al-Kadi, CEO and Managing Director, Injaz Development Co. urban development in Northern Riyadh, particularly in the development of high quality residential properties of varying sizes. Moreover, we can also expect the rapid development of other key amenities, including service centers, integrated services, modern road networks and interactive public transportation systems.” “We expect a continued flow of investments for urban development across Northern Riyadh in the foreseeable future to meet the demands of the region’s growing population. The development of a central road network within Northern Riyadh, along with a number of other vital projects, including the King Abdullah Financial District and the Princess Nora Bint Abdul Rahman University, will help reinforce the reputation of Riyadh as a first class investment destination. In this regard, the Al Gamra 10 project is being undertaken to complement the government’s urban development plans, as it will serve as a tool to generate more investments in Northern Riyadh,” concluded Al-Kadi. DECEMBER 2012 I CITYSCAPE I 11

Middle East THE CITYSCAPE ANNUAL 2012 MENA REAL ESTATE REVIEW Against a backdrop of volatility in the global property market, many emerging regions including the Middle East have proven remarkably resilient to the economic crisis and have emerged as favourable real estate investment destinations. The Cityscape 2012 Annual Review looks back at the performance of the markets of the UAE, Qatar, Egypt, Saudi Arabia and Turkey and provides an outlook for 2013. Although market fundamentals differ within the respective countries, the region as a whole is headed for a promising future. Introduction: O n a global level, sentiment and levels of activity in the world’s major real estate markets experienced many ups and downs during the first half of 2012. Although the second quarter saw a modest rebound in investment and leasing turnover after a slow start to the year, economic uncertainty continues to affect investor sentiment, the Jones Lang LaSalle Global Market Perspective Q3 2012 observed. “Deals are taking longer to close and the market remains polarised as investors steer clear of risky assets, focusing instead on prime product in core markets like London, Paris and New York,” the report said. Amidst the global economic uncertainty and the deepening of the Eurozone crisis, many emerging markets around the world, in particular in the Middle East, have shown noticeable resilience and have gained increasing attention as safe havens for international investors. The UAE is probably the most striking example of healthy recovery in 2012 so far. Heavily hit by the financial crisis in 2008, Dubai’s property prices had fallen as much as 50%. This year, property prices have bounced back in key locations in the emirate and experts predict a bright future for Dubai’s real estate market. Qatar, the world’s richest country by per capita GDP has continued with high economic growth, thanks to a rebound in oil prices and its massive natural gas reserves. In 2012, the Gulf State has continued with massive 12 I CITYSCAPE I DECEMBER 2012 infrastructure and real estate developments in anticipation of the FIFA 2022 World Cup, which will transform Qatar’s real estate landscape. In Egypt, the last months of this year have for the first time seen a welcome return to more settled and stable conditions in the market. Following the election of President Morsi in June, investor confidence has begun returning to the market as the country regains political stability. Saudi Arabia, as the Middle’s East’s largest economy, has introduced its long awaited mortgage law this year which, if fully realised, will help combat the lack of availability of housing for low to mid-low income earners and encourage greater professionalism in the home building industry. Finally, Turkey, which has seen its real estate markets boom across all sectors in recent years, continues to attract significant interest from foreign investors, which is further heighted by the introduction of the Reciprocity Law that came into effect in May. The law lifts the condition of reciprocity for private persons to buy property in Turkey and is expected to further boost development and investment activity in the real estate market. Following the immense success of the Cityscape Global exhibition, held in Dubai in October this year, it becomes clear that emerging economies around the world are shifting the dynamics of the global real estate landscape and are gaining increasing attraction as real estate investment destinations.

MIDDLE EAST UNITED ARAB EMIRATES DUBAI After over three years of declining rents and limited sales activity, in 2012, Dubai’s property marked has bounced back as rents and sales prices in the emirate’s most sought after areas have increased. Supported by a steady increase in tourist arrivals, investor confidence is returning to the market. According to statistics complied by Dubai FDI, the foreign investment office in the emirate›s Department of Economic Development (DED), Dubai attracted AED 16.5 billion (USD 4.5 billion) in foreign direct investment during the first six months of 2012, marking a 7% increase from the same period last year. According to Dubai FDI, this increase reflects a heightened confidence globally on the growth prospects across key sectors of the emirate’s economy, including real estate. According to the Dubai Land Department (DLD), Dubai property transactions grew 21% to AED 63 billion (USD 17.15 billion) in the first half of 2012, compared to Q3 and Q4 2011. Figures published by the Dubai Government show that foreign investors buying real estate were responsible for acquisitions of AED 28.3 billion (USD 7.7 billion) in the first half of 2012, up 36% from the same period last year. Niall McLoughlin, Senior Vice President of DAMAC Properties, commented: “The Dubai property market has performed strongly throughout 2012 and we expect this growth to continue well into 2013. There is a mid to long-term view of investment in Dubai’s property market now which will see consistent growth in the coming years. This is a natural cycle for a maturing real estate industry which will create many opportunities for impressive returns in both rental income and capital gains, outstripping the money markets.” Looking at the residential sector, Jones Lang LaSalle (JLL) says that the first half of 2012 has seen higher levels of residential sales activity and the overall market is now considered to have bottomed out. According to the firm, the recovery in prices is most pronounced in the villa sector where sales prices have increased 21% in the year to May. With regards to rental prices for quality residential developments, property management company Asteco reports an average rental increase of 6% and 9% for apartments and villas respectively (Q2 2012). However, improvement in prices is largely confined to high-end products in prime locations, with less established locations still experiencing declines in both rents and prices. “Luxury apartments have continued to drive the resurgence in Dubai’s real estate market through 2012. Recent reports has valuations up nearly 14 I CITYSCAPE I DECEMBER 2012 Population: 8,264,070 (2010 estimate) Capital City: Abu Dhabi Largest City: Dubai Currency: UAE dirham (AED) GDP: $258.825 billion (2011 estimate) 5% and closing in on 2008 peak prices,” McLoughlin said. “As liquidity returns to the market investors are looking to ensure they have a well balanced portfolio and real estate is a key element of that. As the market has matured and the speculators have moved out, mid to long-term investors recognise the intrinsic value of real estate in Dubai. We believe this steady growth will continue well into 2013.” On the commercial side, although there has been no movement in office sales and rental prices due to a lack of demand and transaction activity throughout the most part of 2012 (Asteco), the outlook for investment in the sector is nevertheless one of cautious optimism. According to real estate specialist Cluttons, a surprising number of transactions were recorded during the normally quiet summer months this year, totalling AED 2 billion (USD 545 million), with major commercial deals taking place in DIFC, TECOM and Downtown areas. According to Cluttons, the hospitality sector has been enjoying sustained occupancy levels and profitable room rates, boosted by Dubai’s ranking as the world’s eighth most attractive tourist destination by MasterCard’s Worldwide Index of Global Destination Cities. McLoughlin agrees, adding that now is a good time to get into the emirate’s luxury hotel market. “Investors can see hotels in Dubai more than 80% full across the whole year and RevPAR [Revenue Per Available Room] rates in excess of USD 100. Dubai’s hotel serviced apartments sector is currently under supplied and this is the ideal opportunity for buyers to get into the luxury hotel industry,” he said. Looking at opportunities in Dubai’s residential real estate market in the coming year, McLoughlin commented: “We will see the biggest expansions in serviced apartments as developers bring this relatively new investment opportunity into the Dubai property market. Elsewhere, there will be a lot of work completed on Al Khail Road and other developing areas. Where infrastructure is already in place such as Sheikh Zayed Road, the Burj Area and Dubai Marina, luxury properties are commanding a premium price.” “Location and quality remain the two factors which people use to decide where to live and these areas are currently attracting huge interest. Where infrastructure is still under development, such as around the projects on Al Khail Road, there are many opportunities available to investors. Prices in Jumeirah Village Circle and IMPZ, for example, will increase dramatically in the next couple of years and are great investments for the medium term,” he concluded. Dubai 2012 Highlights • Economic recovery well underway due to strong growth • • of key sectors such as tourism, commerce, retail, hospitality and logistics Residential property prices up for the first time in 3 years Strong performance of the hotel sector due to an increase in tourism, occupancy levels close to 80%

MIDDLE EAST ABU DHABI The development of the market in the UAE’s capital has been quite different to that of its neighbour Dubai. Here, selective new prime developments offering high quality finishes and amenities have generally been able to sustain rental levels over the last quarter given strong levels of demand (Asteco Q3 Abu Dhabi report). Ahmed Al Fahim, Executive Director of Marketing, Communications, Sales and Leasing at Tourism Development and Investment Company (TDIC), a master developer of major tourism destinations and prime residential projects in Abu Dhabi, commented: “We are pleased to see that the property market has started to show healthy signs of recovery during the year, which is evident through the increased interest in TDIC’s residential offerings.” TDIC has received high levels of interest for their top-end residential projects, particularly in areas such as Saadiyat Island, a leisure, residential and tourism hub expected to become the capital’s cultural centre. However, the residential market is currently experiencing polarised performance. Older buildings formerly considered prime have seen vacancy levels increasing as tenants relocate to new developments, leading to landlords reducing rents (Asteco). Matthew Green, Head of Research UAE for CBRE Middle East, commented: “The residential market in the capital will experience further rental deflation over the next six months, although performance will be highly polarised. Premium properties are expected to hold quite firm on rents, with secondary locations off-island forecast to see a more pronounced dip in rates as occupiers continue to upscale amidst greater affordability.” In addition to the increased demand in prime property, recent legislative changes may also impact on the shape of the emirate’s residential landscape. The Abu Dhabi government is implementing new regulations with regards to linking the renewal of residency visas with accommodation arrangements, which is expected to have an impact on the residential market with an increase in demand for mid- to low budget apartments in the centre of the capital (Asteco). On the whole, the Abu Dhabi market started the year in quite subdued fashion and this trend has continued throughout the rest of the year with weak occupier demand prevailing, Green commented. “The emirate is experiencing a sustained period of downward rental pressures as supply and demand imbalances persist within segments of the residential and office sectors. Significant new supply has been delivered over the course of the year across virtually every asset class. This has heightened already competitive leasing conditions, emphasising the tenant led market scenario,” Green said. While leasing in the commercial sector has continued to improve with tenants taking advantage of the availability of higher quality office space and attractive lease terms (Asteco Q3 report), secondary and inferior office products continue to suffer from widespread rental deflation which has averaged 8% since the start of 2012, the CBRE Q2 2012 Abu Dhabi Marketview said. According to Green, the retail sector currently seems to be showing the most stability despite the fact that a considerable amount of new supply will be delivered to the market over the next four years. Depending on the pace of ongoing construction works, total retail supply could potentially be doubling by 2015, he said. TDIC also commented that during 2012, the residential and retail sectors have been very appealing to various types of investors, prospective tenants and homeowners. “There’s a strong appetite for residential developments across Abu Dhabi especially for those who are looking for unparalleled quality of homes and prominent locations,” Al Fahim said. The company says it has already leased out 98 percent of its apartments at The Residences at The St. Regis Saadiyat, sold out 80 percent of its high-end luxury Saadiyat Beach Villas and leased out 75 percent of its first phase of luxury Eastern Mangroves Residences within a month of its launch. Looking ahead, TDIC is optimistic about the emirate’s residential market performance: “The property market has started to show healthy signs of recovery during the year and we anticipate that the residential market keeps the same momentum hopefully next year. We believe that [distinctive properties] will remain attractive to a wide range of prospective homeowners and tenants in 2013, whilst offering unparalleled high quality homes and flexible financing options,” Al Fahim said. As for the future performance of Abu Dhabi’s real estate market on the whole, Green commented: “The market is likely to remain constrained amidst ongoing demand and supply imbalances brought about by the influx of new inventory. Greater stability may start to be felt towards the end of 2013, as the impact of recent Government legislation changes start to take effect.” Abu Dhabi 2012 Highlights • Market tenant favorable across all asset classes • Residential market continued to see sale price and rent declines • New hotel supply in Q4 expected to put downward pressure on Average Daily Rates DECEMBER 2012 I CITYSCAPE I 15

MIDDLE EAST QATAR OATAR Qatar has prospered in the last few years with continued high real GDP growth, making it the world’s fastest growing economy in 2010. This year, the Gulf State was named the world’s richest country by Forbes magazine, with an average annual per capita income exceeding USD 88,000. Although the country felt the delayed impact of the global financial crisis, Qatar has weathered the global downturn better than many economies around the world. Dr. Bassim Halaby, CEO Benchmark International, Al Wa’ab City Executive Management commented: “The delayed impact was relatively mild when compared with other GCC countries such as the UAE, with several factors contributing to Qatar’s resilience; from the announcement of the Qatar National Vision (QNV) 2030 in the same year, to the surplus liquidity from rising oil prices in 2009, to the successful bid to host the World Cup 2022 in 2010, and finally to the announcement of the National Development Strategy (NDS) in 2011. Real estate recovery was not only inevitable but a more sustainable route to a diversified economy has been paved.” According to Jed Wolfe, Managing Director of Asteco Qatar, the elated market sentiment of 2011 has calmed slightly this year. “There was a great deal of euphoria and consequential market expectation in 2011, following FIFA’s announcement that Qatar was to hold the 2022 World Cup. 2012 started with a more realistic market outlook with the understanding that the World Cup alone would not mitigate any negative global economic factors. There was also a wider understanding that the benefits of such an event would be realised over time and that there was much work to do to meet the country’s development schedule,” Wolfe explained. “I think 2012 has been a year of reassessing one’s holdings and real estate strategies in order to maximise returns in the lead up to the World Cup,” he further said. Commenting on the dynamics of the Qatari real estate market this year, Halaby said: “Leading up to 2012, preliminary application of [the 2030] vision is evidenced through the renovation of Doha Airport, the installation of Lusail City infrastructure, the launch of Musheireb project as a major urban renewal project, and the upgrade of the city road network. Although executed over a delayed timeline, moderate growth in the real estate sector 16 I CITYSCAPE I DECEMBER 2012 Population: 1,757,540 (October 2012) Capital City: Doha Largest City: Doha Currency: Riyal (QAR) GDP: $182.004 billion (2011 estimate) is still witnessed in 2012 through improved volume and value of sales transactions, higher land valuation, and increased demand for residential and commercial spaces.” In the residential sector, marginal residential rental increases were witnessed across most of the locations during Q2 2012, according to the latest Asteco report. Rental rates increased by up to 8% for one- and twobedroom apartments in certain locations while villa rental rates increased by 4% on average. This was mainly due to limited supply and waiting lists are now being seen at the very best quality villa compounds (Asteco). “The growth in this market has been stimulated by a steady increase in population and undersupply of certain types of product. I believe the population growth will continue but supply will increase. Indeed, our research for quarter 3 indicates rents have stabilised again, [which is due] to the delivery of more residential product,” Wolfe said. According to Halaby, a distinctive feature of the Qatari market is not only that it has grown rapidly in the past 10 years, but that there has been a growing trend to decentralised ‘lifestyle centres’, breaking away from the centre of Doha. One of such sub-centres is Al Wa’ab City, a large-scale mixed-use development covering an area of 1.25 million square metres. “Coupled with local ownership restrictions, this growing trend of decentralised ‘lifestyle centres’ has led to stronger family-based transactions and more inherent, less speculative land purchases. Needless to say, this has shielded the real estate sector from any bubble threats in the forthcoming future,” he said. Other sub-centres include the historic downtown of Musheireb, the festival city of Doha, Lusail City and the Pearl. Looking at 2013, Wolfe sees a healthy year ahead. “In my opinion 2013 will be more positive than 2012. The Government seems to be very close to announcing finalised plans for a number of infrastructure projects. If this happens and contractors and developers mobilise to begin these works, 2013 could be a healthy year for real estate. Real estate markets the world over have found recent years a tough challenge. I believe developers who focus on providing quality assets at the right price points will realise the greatest returns,” he said. According to Halaby, the outlook for 2013 is one of continued growth. “The government continues with its diversification mission to endorse real estate developments in the sports, cultural, and educational sectors sustained by public transit systems, medical facilities, residential communities and commercial corridors. This strategy will transform Qatar into an advanced country that provides a high standard of living for all its inhabitants – for generations to come,” he concluded. Qatar 2012 Highlights • The government’s economic diversification program boosts quality community real estate developments • Rental rates up to 8% for apartments and 4% for villas • Waiting lists are now being seen at the very best quality villa compounds

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MIDDLE EAST EGYPT EGYPT Following the Revolution of February 2011 which ousted former President Hosni Mubarak, Egypt was struggling to regain political and economic stability which had an immediate impact on the country’s once thriving real estate market. Now, things are finally looking up. After one and a half years of civil unrest and political turmoil, the past three months have seen a welcome return to more settled and stable conditions following the election of President Mohamed Morsi and the appointment of a new government, the latest Jones Lang LaSalle Cairo Real Estate Market Overview said. While Egypt’s economy was hit hard by the Revolution, with real GDP of just 1.8% recorded last year, the new government is aiming to achieve nominal growth of 4% to 5% this year (JLL). According to JLL, an indication of returning economic confidence is that 703 new companies have started operations across Egypt. The government is also undertaking major efforts to boost tourism as this sector contributes to 12% of GDP and employs 4 million workers (12.6% of the labour force). With a large, young and growing population, Egypt presents numerous opportunities to real estate investors. 18 I CITYSCAPE I DECEMBER 2012 Population: 82,000,000 (2012 census) Capital City: Cairo Largest City: Cairo Currency: Egyptian pound (EGP) GDP: $533.739 billion (2012 estimate) “[Egypt’s] most distinctive characteristic when compared with other parts of the MENA region is the inherent demand for residential properties due to the continuous annual population growth, plus the backlog of demand which hasn’t been fulfilled to date. [There are] 500,000 new marriages [and a] 1.8 million net population growth per annum. No other market in the region has that kind of demand,” commented Ibrahim El Missiri, Development Director at Madinet Nasr for Housing and Development (MNHD). Residential In 2012, the residential middle-income sector has witnessed the most activity and currently experiences the strongest demand, with a huge spike in activity and demand since September 2012, El Missiri said. Coldwell Banker New Homes, one of Egypt’s premier real estate agents, confirmed this while adding that the strongest demand is directed towards apartments within gated compounds. This is supported by JLL, who have reported a major shift from high end luxury villas to apartments aimed at middle income earners within gated compounds over the past two years, as this sector was previously under supplied.

MIDDLE EAST “The bulk of the supply pre-revolution was for the high-end, this has now shifted to the under supplied middle-income [sector] which is the where the bulk of the demand is. It’s now about providing high-end lifestyles to the middle-income market,” El Missiri explained. As a result of the high demand for apartments, sales prices for apartments have increased in both New Cairo and 6th of October City; Cairo’s satellite cites which hold the majority of the capital’s gated compound developments. According to JLL, in New Cairo, the average price for apartments has increased 1.5% per square metre from Q2, currently sitting at USD 1,198. The firm says similar trends have been experienced in 6th of October City, with apartment prices up 8% to USD 990 per square metre. The provision of affordable homes has also been a major topic in the Egyptian residential market, with the country currently facing an immense shortfall of 1,500,000 affordable homes. As a measure to

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