Dubai Mall

After numerous delays, the Dubai Mall finally opened this week, with the General Manager, Mr. Yousif Al Ali promising that “The Dubai Mall is bringing in a truly qualitative difference to shopping by offering a total lifestyle experience,” as he opened the Aquarium.

The Mall is situated at the base of the Burj Dubai, which is currently the tallest building in the word, albeit still under construction. One has to wonder at the need for another mega-mall in a country that already has several king-size shopping centers. Dubai Mall is the largest shopping center in the history of shopping centers and will eventually be home to 1,200 retailers, although some of the cornerstone retailers have yet to open their doors. Galleries Lafayette and Bloomingdales are scheduled to open in 2010, and there are presently 600 retailers open for business, including British supermarket chain Waitrose and Hamleys toy store.

Many have expressed some doubt as to whether the owners, Emaar, will be able to attract their target of 30 million visitors a year, especially with the current economic downturn. Economist Eckhart Woertz said, “The impact of the financial crisis is being felt everywhere, and that includes the United Arab Emirates, where the appeal of shopping centres could suffer from restrictions imposed by banks on the use of credit cards.”

It would seem investors agree with this sentiment. Emaar’s shares have fallen over 60% in value this year, despite buy backs by the company. Under local regulations Emaar is permitted to buy back up to 10% of it’s shares, and has done so in an attempt to stem the falling value.

The Dubai Mall includes a gold souk, an olympic-size ice-skating rink, a dedicated “Fashion Avenue,” with 70 signature stores, a 22-screen multiplex, an indoor theme park, an 80,000 square foot children’s “edu-tainment” center and an aquarium that boasts the “World’s Largest Acrylic Display Panel.”

And if that is doing to your heartrate what it is doing to mine, here is a soothing photo of one of the sharks in the aquarium.

Shark in the Dubai Mall Aquarium

Photo credit and more of the aquarium.

High end luxury property values in Dubai are likely to see the largest fall in prices during the expected correction says mid-range property specialist, Mohammed Nimer

"People buying mid-range apartments are doing so mostly to live in them as homes rather than looking for short-term gains," says Mohammed Nimer, CEO of MAG Group Property Development

If a correction in the United Arab Emirates real estate market is imminent, it will be high-end property values that suffer most rather than mid-range, according to a leading property developer. Most of the recently introduced laws in Dubai are aimed at curbing the short-term speculators, and much of the price increases over the last several years have been driven by the top end of the market.

With increasing warnings of a downside correction, particularly in Dubai’s overheating real estate market, it has been the luxury properties - which were and still are more attractive to speculators - that will be hardest hit, says Mohammed Nimer, CEO of MAG Group Property Development.

“In comparison, the mid-range market will be more stable if and when the downturn comes, as people buying mid-range apartments are owner-occupiers, doing so in the main to live in them as homes rather than looking for short-term gains,” he added.

Nimer recently predicted the Dubai construction boom would peak in early 2009, with $3 billion worth of real estate either on the drawing board or under construction. From that point, he believes the market will fall back to 2007 levels, subduing rising prices.

A clearer view of the outlook for the real estate market is expected to begin emerging during the Cityscape Dubai property show early next month. “Meanwhile, from our perspective, developing and marketing property in the mid-range sector, we remain confident that demand from owner-occupiers will keep market prices stable,” Nimer added. “Issues of liquidity in the financial sector will have a bearing, but again we see this as limited compared with top end luxury developments.”

Nimer was speaking as MAG Group Property Development, which specialises in competitively priced buildings in the mid-range market, prepares for participation at Cityscape Dubai (6-9 October 2008 at the Dubai International Exhibition and Convention Centre) at which current residential tower projects will feature.

They include: MAG 218, which is 90% sold and due for completion at the end of 2009; MAG 226, 50% sold and due for completion at the end of 2010; MAG 228B, 40% sold and due for completion in the first quarter of 2010; and Matex, which is 85% sold with a completion date to be announced.

The MAG Group sees itself a regional industry leader in establishing firm business ethics embracing sustainability and communicating transparently. “We also insure that anyone who purchases one of our properties is a safe investment,” Nimer said. “Quite simply, that means that the finance on any of our individual buildings is completely covered before we announce the project and seek buyers.

“Unlike some, we don’t make grandiose claims about being the highest, biggest or the most expensive,” he added. “We recognise that what people are looking for is affordability, quality and a pleasant home to live in and bring up their families.”

MAG group

This is not the first developer to predict a drop in prices in Dubai. You are invited to discuss this in the Luxury Property Forums.

The Luxury Property Blog looks at Manhattan, where the luxury real estate market has created a new median record for apartments in Manhattan despite falling sales and growing inventory

Much is being made of the latest news that median apartment prices have reached a new record in Manhattan. But what does this actually mean? A selection of news articles covering the Manhattan real estate market. In no particular order.

Sales are down, but the average price of an apartment in Manhattan is currently just over $1.6 million according to Curbed’s “State O’ the Market Report.

Summer doldrums be damned, it’s friggin’ market report day, people! We’re talking Q2 this time around, and the results should surprise no one. Just like the first quarter of 2008, prices are at record levels but sales are down from this time last year. Miller Samuel’s report for Elliman has the average Manhattan sales price at $1,669,729, a 25.2% increase over the prior year quarter result of $1,333,316.

The IHT blog, “Raising the Roof,” suggests that “Trumplings are busy pitching New York to foreign buyers,” after the International Herald Tribune reported that Donald Trump’s SoHo hotel-condo project will be offering the penthouses exclusively to buyers from the United Arab Emirates.

With the Trump Organization’s continued growth throughout the Middle East, we thought it was only fitting to bring sales of our unique Trump SoHo penthouses to the U.A.E. Trump said in an e-mailed statement.

Peter Comitini offers the latest Corcoran group market trends report which has been revamped and is now being produced in collaboration with Property Shark.

New development closings typically lag behind the market by one-to-two years and are therefore a poor barometer of what happens when a seller lists the home she has lived in for ten years on today’s market. Moreover, brand new, highly-amenitized luxury properties are much more likely to sell at a higher price point than the average property competing on the open market. In this report, therefore, we examine re-sales in isolation while our colleagues at Corcoran Sunshine analyze new development property sales.

The Wall Street Journal reports that the median price of a Manhattan apartment hit $979,000, up from $795,000 in 2007, but also states inventory is up. Strong luxury sales and faltering studio sales had the perverse effect of pushing the median to a new record.

While luxury sales remained very strong, the reports showed slowing sales and weakening prices for studios and one-bedroom apartments, where buyers are extremely sensitive to tighter lending requirements and larger down payments now being demanded by mortgage lenders,” writes Josh Barbanel in the New York Times.

Put simply, the only property selling at the moment is the very high-end luxury real estate - expect a median price correction when the rest of the market eventually comes back to life.

RUSS!A Investment Roadshow

Atlantis (Palm Island), Dubai, 10-11 November 2008

Following the launch of the Russia Investment Roadshow in London in April 2008, in the first of a series of events in international financial centers, the Roadshow will move to Dubai in November 2008, for an intensive, interactive event focusing on investment opportunities in Russia and on the continuing growth of Russian investment abroad. With Dubai’s increasingly prominent role as a global investment hub, and with ever strengthening commercial links between the UAE and Russia, the time seems right for the Russia Investment Roadshow to visit Dubai..

The Russia Investment Roadshow will include industry CEOs, bankers, investors, journalists and other opinion formers from Russia, Dubai and all around the world. The centerpiece of the Roadshow will be a two-day conference presenting an in-depth look at the Russian business landscape and its links to Dubai and other global marketplaces. In addition to the conference the Roadshow will comprise the Russian Rhapsody VIP charity gala dinner, the Moscow Motion After Party and a special dinner event for the finance community, the Bull & Bear Banquet.

Dubai has built a dynamic economy founded on trade, manufacturing and financial services in addition to revenues from petroleum and natural gas and is becoming the driving force behind the United Arab Emirates economy. In recent years, Dubai has attracted world-wide attention through innovative real estate projects and sports events. This increased attention has further fuelled its emergence as a world business center.

If you are interested in obtaining tickets for this show, the RUSS!A investment roadshow website is here.

One of the world’s leading luxury yacht manufacturers, Ferretti Group, has just announced a partnership with ACI Real Estate to build a shoreline property in Dubai. The $1.6 billion project, named “Marine Legend” at Nakheel’s Dubai Waterfront will be the first real estate venture for Ferretti.

Chief Executive Officer of the Ferretti Group, Mr. Vincenzo Cannatelli, said he believes there is great potential in the real estate sector, especially in the East, and the company is eager to become involved in the shore based side of things.

"We are not getting directly involved in the real-estate business, but participating with right partners to improve our presence," Cannatelli said when asked what part his group would play in the deal. The real estate sector, he said, directly complements the yacht industry by way of accelerating business.

"The growth of waterfront properties in Dubai will definitely accelerate our business in the region. In fact, many customers of ACI Real Estate are our potential customers too and would be interested in owning one of our yachts."

Currently, Ferretti sells approximately thirty luxury yachts yearly in the United Arab Emirates, and is hoping to improve that to between fifty and a hundred units within the next five years.

"We have been thinking of the UAE as our next destination for international expansion. The market offers a special platform with a sound business environment that facilitates global business and investment. Dubai is well poised to become a leading global business capital and we are happy to join ACI to be part of this invigorating phase of growth," he declared.

Managing Director of ACI Real Estate, Mr. Robin Lohmann said the property will create new trends in luxury waterfront residence in the emirate.

"Marine Legends reflects growing demand for high-end residences and concurrently aims at providing an appropriate setting that unifies the requirements and aspirations of Dubai to appreciate the waterline and improved water canal systems," said Lohmann. "There has been a lot of infrastructure development at the Dubai Waterfront, and I think it is a realistic scenario to complete the project within the scheduled time as we have already started working on the design."

The plans are to complete the project within the next thirty–six months. Marine Legends will comprise three twin towers and will be designed with yachting elements blended in into it. Architects from both partners will co-ordinate on the design and some of the towers will be named after the Ferretti brands.

Lohmann said the company would be securing more properties in the Dubai Waterfront in the future. "We have already crossed $2.7 billion in turnover in this year. We will be diversifying our portfolio by securing our market share in emirates such as Abu Dhabi, Ajman, Ras Al Khaimah as well as Dubai, where new developments are happening."

Ferretti Group

As far as I can tell from the advertising, Ferretti yachts seem to come fully equipped with a bevy of bikini-clad babes  (three seems to be the optimum number) - just one more reason to buy one Although, as they are fully customisable, I imagine there is an option for speedo-clad hunks, if that is your preference.

The Ferretti Group, based in Forli, is one of the world’s leaders in the design and construction of luxury motoryachts and sporting boats that measure between 7 and 80 meters long. The Group consists of: Ferretti Yachts division (flybridge motoryachts, 14 to 27 meters), Pershing S.p.A. (high performance open cruisers, 11 to 35 meters), Itama Cantieri Navali S.p.A (open motoryacht, 13 to 25 meters), the American Bertram Yacht, Inc. (sport fisherman motoryachts, 12 to 22 meters), Riva S.p.A. (open and flybridge motoryachts, 10 to 35 meters), Apreamare S.p.A. in Sorrento (“gozzo sorrentino” and ‘Maestro’ line, 7 to 25 meters), Mochi Craft division (lobster boats, 13 to 23 meters), Custom Line division (maxiyachts in composite materials from 26 to 34 meters with two decks) and CRN S.p.A. , (megayachts in composite materials – 40 meter planig model and 43 meter displacement model - and steel megayachts from 46 to 80 meters)

The Group also includes: Ferretti Group USA, Inc. , the company responsible for importing Ferretti Yachts, Pershing, Riva, Apreamare, Mochi Craft, Custom Line and CRN motoryachts to the United States and Canada, Resin Sistem S.r.l., a company specialized in the production of fiberglass products for Ferretti boats, Diesse Arredamenti, a company specialized in the production of boat interiors for all the companies in the Group, Diesel Center, a distributor of diesel marine engines, propulsion and control systems, reversers, reducers and generators, as well as Pinmar S.L. , European leader specialized in yacht painting and refitting, Zago S.p.A. , a company specialized in the production of wooden fixtures and furnishing for megayachts over 100 feet. It is currently present in 95 countries and has three representative branches in Europe, the United States and Asia.

Ferretti Group

Nakheel Properties

Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announces the entry of The Luxury Collection® in Ras Al Khaimah, the fourth largest emirate in the United Arab Emirates.  Under a long-term agreement with Saraya Islands, PJSC., the hotel will be operated under the Luxury Collection brand within the Saraya Islands, a distinguished mixed-use destination in the heart of Ras Al Khaimah between the Hajjar Mountains and the Arabian Gulf.  The Luxury Collection Resort is expected to open in 2011.

"We define The Luxury Collection by our guests and the experiences and services they demand and expect.  Nothing less than an exceptional level of service, perfect location and indigenous personal offerings will do," said Ross Klein, President of Starwood’s Luxury Brands Group. "The magical destination of Ras Al Khaimah on the edge of the Arabian Gulf creates the perfect setting for the debut of The Luxury Collection in the United Arab Emirates."

The hotel’s 300 lavishly decorated guestrooms will include 40 suites, all with breathtaking views and the latest modern conveniences.  It will serve a variety of international culinary options at its six food and beverages outlets, including two specialty restaurants, and offer approximately 43,000 square feet of indoor meeting space. The Luxury Collection Resort will provide guests with an exceptional level of service, a majestic ambience and exquisite oceanfront dining options. Guests can take a refreshing swim in the pool, play an invigorating game of tennis, indulge themselves with a soothing spa treatment or simply enjoy the sun along the hotel’s beautifully landscaped property, which includes a private stretch of pristine beachfront.

Saraya Islands, the luxurious mixed-use destination, is conveniently located fifteen minutes from Ras Al Khaimah’s international airport. The Luxury Collection Resort will occupy a prime spot in Saraya Islands. Within this destination, guests will have access to upscale shops, restaurants, entertainment outlets, indoor and outdoor sports facilities, a water amusement park and three miles of sandy beaches.

"It is only right and in sync with our strategy to partner with the best in the tourism field for Saraya Islands.  Partnering with The Luxury Collection brand is our contribution to the hospitality sector in Ras Al Khaimah, which has witnessed substantial development in the past couple of years, and this hotel will add a further dimension of excellence," said Mahdhar Al-Tamimi, General Manager of Saraya Islands.

"We are very proud to be chosen by Saraya Islands for the management of this fantastic property and I am looking forward to expand our relationship in the near future," said Roeland Vos, President of Starwood Hotels & Resorts in Europe, Africa and Middle East. "We are fully committed to providing exceptional service and memorable experiences to our customers and I am sure this Luxury Collection Resort will offer our global travelers the opportunity for an unforgettable, luxurious stay in United Arab Emirates."

The Luxury Collection Hotel concierge will bring guests enriching, indigenous experiences that showcase the beauty, culture and gastronomic richness of the area.  The new property joins more than 69 hotels under The Luxury Collection brand around the world, including Hotel Maria Cristina and Hotel Marques de Riscal Hotel in Spain, Hotel Danieli in Venice, Hotel Imperial in Vienna, Hotel Grand Bretagne in Athens, and The Phoenician in Arizona.  Each is unique, providing the discerning global traveller with an experience that is authentic to the destination.

Saraya Islands will comprise six premium five-star hotels and resorts, a top-notch marina, palatial villas, villas of various types and sizes, lagoon view townhouses, waterfront terraced apartments, exotic bungalows, high quality retail, restaurants and entertainment outlets, a pedestrian boulevard, indoor and outdoor sports facilities, pedestrian-friendly bridges, bicycle roads, and an amusement water park, in addition to five kilometers of sandy beaches, all set within a unique architectural design.