Dubai rents up and sales flat in Q3, says Asteco

Dubai rents up and sales flat in Q3, says Asteco

Apartment and villa rents up 2% and 3% respectively since Q2 2012; real sales prices unchanged; commercial property market quiet, says Asteco Q3 2012 report.

Quality residential developments in Dubai built upon their strong performance in Q2, with average rental increases in Q3 2012 of 2% for apartments and 3% for villas.
Residential sales prices were relatively unchanged, even though increasing numbers of units were advertised at inflated prices, while the commercial property market remained subdued due to a lack of demand, according to the latest Q3 2012 report from leading UAE property management company, Asteco.

Apartments on Sheikh Zayed Road and Downtown Dubai showed the greatest rental increases, with a two-bedroom apartment annual leasing rates up 6% at AED105,000 and up 4% at AED120,000 respectively.

Leasing rates for villas followed a similar steady trend, with the Palm Jumeirah leading the way with a 7% increase. A three-bedroom house now rents for AED325,000 per annum on average. The Springs and the Arabian Ranches were next in line with increases of 5% and 4% respectively. Three-bedroom villas were leasing for AED125,000 per annum in the Springs while similar properties in the Arabian Ranches were leasing for AED145,000 per annum.

“The increasing rental rates are due to the lack of a certain unit type, whether that is larger three-bedroom units in towers or smaller townhouses in villa communities,” said Elaine Jones, CEO at Asteco.

“The reason for the shortage of a particular unit type is either the low number of units initially available or high occupancy rates within certain developments,” she added.

Asteco also witnessed increased rates in some of the emerging communities such as Jumeirah Village, which can in part be put down to the increased demand as infrastructure, landscaping and the retail offering improve.

“It is also true that increasing rents in more established developments and the consequent outflow of residents unwilling or unable to pay the hiked rate, are adding upwards pressure to the rental rates,” commented Jones.

Overall sales prices in Q3 2012 remained stable after the steady increases which were recorded at the beginning of the year. The summer coinciding with Ramadan resulted in lower enquiry levels and consequently no significant pickup.
Apartment sales were relatively unchanged since Q2 2012 - the only movement was seen in the Greens, which recorded a 3% increase, edging up to AED8,800 per square metre. Apartment sales prices in DIFC and the Palm Jumeirah, still the most expensive areas, both commanded AED14,000 per square metre.

There was also little movement with villa sales, which were flat across the board. Once again the Palm Jumeirah is still the most sought after with villas changing hands for AED17,200 per square metre, compared with AED5,400 per square metre in Jumeirah Village.

The commercial market has also been rather passive since the beginning of June, which was reflected in the office sales and rental rates, which remained unchanged.
“One trend we have noticed is that tenants and or buyers of office space are demanding significant discounts and incentives before committing. This is likely to continue as more supply enters the market,” said Jones.
For more details, please visit www.asteco.com


The full Asteco Dubai Q3 2012 report is available online at http://www.astecoreports.com/


Asteco, a major regional and international real estate services firm and the largest property services company in the United Arab Emirates, was founded in Dubai in 1985. Asteco offers independent market analysis, design development consultancy and valuation services, sales and leasing services, as well as asset and property management services.

Asteco:Affordable homes gain traction in Dubai

Affordable homes gain traction in Dubai

Asteco Q3 report finds lower-end stability across the city but high-end property sales and rents nudged down 4% and 6% respectively – office tenants defer decisions

Sale prices in a number of freehold communities across Dubai remained stable in Q3 this year compared to the previous three months, according to the latest report by leading Dubai-based property management company Asteco.

The Asteco Dubai Q3 Report 2010 published today (2 October 2010), revealed that, although further price adjustments are expected in the near future, affordable apartment developments, such as Discovery Gardens and Jumeirah Lake Towers (JLT) remained at AED 500 and AED 750 per sq ft respectively for the three months to the end of September.

“Asteco has recorded an average drop of 6% for [apartments]. This is mainly attributed to the increasing supply of apartments. However, we have also seen increased sales activity, predominantly due to owners who are expected to take handover of their unit but are unable to make the final payment, which often constitutes a large percentage of the overall sales price,” said the report.

This trend was also mirrored within Downtown Burj Dubai, which despite being at the opposite end of the price spectrum still commanded AED 1,300 per sq ft throughout the same period.

Despite demand for townhouses and smaller villas picking up speed – a trend Asteco expects to continue in the short-to-medium term – during Q3 it was properties in Emirates Hills, Jumeirah Islands and the Green Community that remained unchanged price-wise at AED 1,600, AED 950 and AED 700 per sq ft respectively.

“There has been a change in focus in the real estate sector as maximising rental yields and long-term capital appreciation takes precedence over short-term sale profits, with pro-active property management being a key factor,” said Elaine Jones, CEO, Asteco Property Management.

The rental market in Dubai has followed much the same pattern as the sales sector with price shifts favouring tenants.

Despite an overall apartment rental contraction of 6%, units in JLT slid just 2% with 3% adjustments in Discovery Gardens and Downtown Burj Dubai.

“The number of transactions, which are generally at their lowest during the summer and Ramadan, has been surprisingly active with a number of people taking advantage of the quiet months to look for value for money accommodation. Therefore, the drop in rents has proved to be less significant than in Q2. Although further declines across the board cannot be ruled out, the drop in [Discovery Gardens and JLT] is expected to be less noteworthy due to the already lower rents,” explained the report.

The villa rental market fared slightly better with average declines of just 4% over Q2 on the back on increased stock coming on the market in out-of-town developments in Dubailand and Dubai Silicon Oasis. Despite this, rates in the Green Community and on Palm Jumeirah remained unchanged with the market expected to gain momentum in the coming months as tenants look to upgrade from apartments.

“With an increase in activity over the summer, we expect this momentum to continue in Q4 2010 with expected demand predominantly coming from tenants looking to move from apartments to villas as rental levels continue to adjust. Villa rental rates seem to be more robust compared with apartments, which in part has to do with the fact that the current and future supply of villas is marginal compared to apartments,” said the report.

Meanwhile, the office market completed a relatively positive quarter in Dubai with average contractions of just 3% in the rental sector. But while small businesses have moved out of Dubai Internet and Media cities over the past three months, others are deferring decisions until Q4 as long-term downward pressure is likely within the planned supply.

“Long-term anchor tenants are expected to renegotiate lower rental rates whilst minimal relocation demand exists, however this will be tested as new supply enters the market and companies take advantage of better locations and facilities,” added the report.

For more details, please visit www.asteco.com

About Asteco
Asteco, a major regional and international real estate services firm and the largest property services company in the United Arab Emirates, was founded in Dubai in 1985. Asteco offers independent market analysis, design development consultancy and valuation services, sales and leasing services, as well as asset and property management services.

Dubai residential rental market stable in Q1

Dubai residential rental market stable in Q1

Villa rents and sales flat with only slight decrease in apartment rents – office rents still sliding due to increased supply

Villa rental rates in Dubai remained stable with no significant change in the first quarter of this year compared with the last quarter of 2009, according to the Dubai residential and commercial property market report for Q1 2010 published today (12 April 2010) by Asteco, the biggest property services company in the United Arab Emirates.

Apartment rental rates recorded a slight decrease of 5%, largely due to the increased supply in the market, although some areas such as Downtown Dubai witnessed increases of 2%.

However office rents continue to decrease and have seen an average drop of 7% due to subdued demand and increased supply says Asteco’s report.

Commenting on the results of the latest report, Elaine Jones, CEO of Asteco Property Management, said: “Over the past 25 years we have seen various peak and troughs in the property market with an overall incredible growth in the region. The only constant is change and the positive upturn after every decline.”

The report adds: “Demand for villas was predominantly for those in established locations such as Jumeirah where rental rates remain unchanged over the last quarter and in the Palm Jumeirah and The Springs which recorded slight increases of 5% and 2% respectively.

“Developments along Emirates Road such as The Green Community and Arabian Ranches continue to generate demand from Abu Dhabi as rental rates are competitive, however, increased availability in Arabian Ranches, Green Community and Mirdif have resulted in slight drops in rental rates.”

Villa sales prices remained almost flat, recording an average decrease of 1% over the last quarter.

The Asteco report says: “Established communities such as The Springs, Meadows and Arabian Ranches are the preferred choice for buyers. There is good demand for smaller villas due to the price point on both a sale and lease basis. Although the number of enquiries is strong, there is still a gap between asking prices and what buyers are willing to pay.”

“Apartment rents in Downtown Dubai and Palm Jumeirah increased by an average of 2% and rents remained stable in Jumeirah Beach Residence due to the popularity of these developments which offer community living and an abundance of retail and entertainment facilities,” the report adds.

The report adds that apartment rents in areas such as Discovery Gardens, Dubai Marina and Jumeirah Lakes Towers “are expected to decline further throughout the year due to numerous projects reaching completion.”

Asteco says it has registered an increase in sales volume in Q1 2010 compared with Q4 2009, especially on the Palm Jumeirah and Downtown Dubai. “This is in line with both increased availability of finance at lower rates and availability of affordable deals,” said Asteco.

The report adds: “Jumeirah Lakes Towers, Discovery Gardens and International City have also reported increased transaction activity and enquiries - mainly due to price reductions and handover of projects.

“Similar to villas, a large number of buyers are looking for smaller units in established locations due to a lower price point and the increased opportunity to lease the property out for investment purposes.”

Office rental rates continue to decrease and have seen an average drop of 7% due to limited demand and increased supply in areas such as Dubai International Financial Centre, Jumeirah Lakes Towers and Tecom. The report says, “The number of enquiries remained stable from small- to medium-sized businesses looking for units ranging from 1,500 to 5,000 square feet with the majority of tenants looking for fitted office space to reduce start-up costs and time.

“As more stock enters the market, this will continue to put downward pressure on rental rates and occupancy which will benefit tenants who are looking to upgrade in terms of quality and location.”

Sales prices for office units dropped by 10% compared with Q4 2009 but despite the decrease, demand and resulting transaction volumes remain low, says Asteco.

“Developments such as Jumeirah Lakes Towers, Tecom and Business Bay have recorded some activity over the last three months. Jumeirah Lakes Towers benefits from its affordability due to a large completed and near completed inventory. Tecom, on the other hand, has a limited amount of freehold units and benefits from a large number of residential units in close proximity to a living and working environment. Asteco has seen a few transactions for Business Bay due to uncertainty over completion and the amount of construction which continues to hinder sales.”

The report adds that, according to free zone authorities, developers in Dubai are seeking to convert commercial developments into mixed-used projects in order to respond to changing market conditions.

Dubai rents reflect global and local economy

Dubai rents reflect global and local economy

Modest Deira apartments a microcosm for world events as property services company Asteco celebrates 25th anniversary

Economic dynamics both regionally and internationally over the past two-and-a-half decades have been reflected in microcosm by the rent levels of two modest apartment blocks in the bustling heart of Deira, Dubai, according to property services company Asteco, which celebrated its 25th anniversary today (Monday 8 March 2010).

In 1985 Al Muraqqabat apartments were one of Asteco’s earliest appointments as leasing and management agents. The company has since grown to become the largest private property management firm in the United Arab Emirates.

“The varying rent levels over the past 25 years have reflected the impact of fluctuations in the world economy, oil prices, wars and conflicts as well as the effects of more recent heated growth in the local economy,” said Elaine Jones, Chief Executive Officer of Asteco, who has been with the company since it was founded.

“We have been involved with many of the buildings that have shaped and defined Dubai and the UAE and the ups and downs of these property prices provide the documentary evidence that we are living in a global village,”

The apartments vary in size from studios to three-bedrooms and have been home for hundreds of families, couples and bachelors from all corners of the globe. In 1985 annual rents for studio apartments were AED 9,500, one bedroom apartments were AED11,000, two bedroom at AED17,000 and three bedroom apartments at AED25,000.

For the first ten years there was little, if any, change in the rents of the properties even though Dubai suffered economic hardship due to lack of trade during the Iran-Iraq war between 1980 and 1988.

In 1995 rents had increased with studio apartments costing an average of just over AED14,000 a year with the three bedrooms going for an average of under AED28,000. Today, 15 years later, the studios rent for an average of AED24,000 while the three bedroom apartments fetch an average of AED62,500.

Between 1995 and 1997, rents bounced up and down within a 5% to 10% range but 1998 marked the start of an international decline. It was brought about by the Asian financial crisis, declining oil prices – in January 1999 the price of a barrel fell to $17 – and the bursting of the dot.com bubble later in the same year.

By 2000, the rents of the studio apartments recorded their first decline over the previous year and averaged AED16,500. Similarly three bedroom apartment rentals fell to an average of AED34,000. Bigger falls were to come in 2001, however – the year of the 9/11 tragedy which impacted the world – with studio rents in particular falling on average to close to the same level of 1995. But while 2001 marked a low point, it was also the start of a regional economic upturn built on rapidly recovering oil prices.

“The factors driving the oil price escalation included the Iraq war, a weaker dollar and Asian growth,” said Jones. “Oil price increases were, as always in this region, a major driving factor in the local economy at the time with the barrel price rising to around $60 by 2005.

“The resurgent local economy with an abundance of new projects, companies, free zones, and mega-developments being announced virtually on a weekly basis again fuelled rent rises which rose in 2005 at a market rent of around AED17,000 for the studios and AED41,000 for the apartments.”

The next couple of years saw the gap narrowing between supply and demand in the Dubai housing sector which by 2007 led to the beginning of a dramatic change in rental trends. With the cost of living rising in Dubai combined with the first supply of properties coming up in New Dubai, continuing decline in rentals for three bedroom apartments was witnessed.

Conversely, market rents for the studios soared to previously unseen heights. By 2008 much of the world was in the grip of recession but the price of oil had just peaked at $147 and Dubai’s soaring growth continued. The market rent of the studios reached more than AED36,000 – almost AED17,500 more than the previous year.

“For many it was a question of a studio apartment being all they could afford at a time of high rents all round,” said Jones. “That combined with many expatriates sending their families home to save money by giving up larger apartments.

“The boom in studio apartment rents wasn’t to last for long, however. With supplies of studios and affordable apartments coming onstream from the New Dubai areas like Discovery Gardens, the Marina, and more specifically International City, the studios at Al Muraqqabat experienced an unprecedented fall in price.

“These factors combined with the impact of the global recession finally reaching the region, rapidly declining oil prices, the bursting of the Dubai property bubble and the fallout of the credit crisis, to bring the graph tumbling down. Today we are looking at an market rental for the studios at Al Muraqqabat of an affordable AED24,000.”

As Asteco marks its 25th anniversary, Jones added: “We have recorded and endured the changes over 25 years in the property market and hopefully will continue to do so for at least the next 25 – serving the market both in high times and down times.”

Asteco offers independent market analysis, design development consultancy and valuation services, sales and leasing services, as well as asset and property management services. For more details, visit www.asteco.com

Dubai apartment and villa prices stable at year end

Dubai apartment and villa prices stable at year end

Led by Palm Jumeirah, lifestyle communities ‘weathering the storm,’ says Asteco report on Dubai property market

Sales prices for apartments and villas in completed developments across Dubai in general stabilised towards the end of 2009 with no change from the third to the final quarter, according to the latest report from Asteco, the largest property services company in the United Arab Emirates.

The latter half of 2009 also saw an increase in transaction activity as the economy picked up and mortgage availability improved, says the report on the Dubai residential and commercial property market for Q4 2009 published today (XX January 2010).

Of all the developments monitored, Palm Jumeirah fared best as it was able to hold values, the company said. “Lifestyle communities are weathering the storm and the Palm Jumeirah is an iconic development and, with continuous improvement of infrastructure and completion of residential and hotel developments, has become a sought-after destination,” said Asteco CEO Elaine Jones.

Other areas identified by Asteco as continuing to generate interest throughout 2009 include Downtown Burj Dubai, Dubai Marina, Jumeirah Beach Residence, Springs and Arabian Ranches as they offer lifestyle communities with easy access to retail, leisure, education and entertainment.

In 2009, the average sales price in Dubai stood at AED950 per square foot for apartments with a change of minus 16% since Q1 2009, and AED1,000 per square foot for villas with a minus 9% change since Q1 2009, says the report.

Business Bay and International City saw the largest decrease in apartment sales prices since Q1 2009 with 23%. Green Community and Palm Jumeirah prices remained stable with no change since the beginning of the year. However, the year-on-year change from Q4 2008 was minus 46%. The highest drop in prices occurred between Q4 2008 and Q1 2009.

In the villa market, Jumeirah Park experienced the highest drop in sales value since Q1 2009 with 34%, followed by Arabian Ranches with 29%, says the report. Palm Jumeirah and Springs, on the other hand, recorded positive growth with 20 and 21% respectively. Similar to apartments, price decreases were most substantial between Q4 2008 and Q1 2009. The average year-on-year decrease amounted to 49% since Q4 2008.
Dubai rental rates have declined by 24% for apartments and 18% for villas on average across the year of 2009, according to Asteco. Apartment rental rate decreases saw Palm Jumeirah with a minimal decline of 6%, in comparison, followed by International City with -15% since Q1 2009.

Villa leasing rates in Jumeirah and Umm Suqeim saw the highest drop with 30%. Palm Jumeirah was the only area that recorded an increase in villa rental rates of 4% on average due to the lack of availability as many owners bought property to live in or keep as a holiday home.

Compared with Q3 2009, the decline in rental rates slowed in the last quarter with overall decreases of 2% for apartments and 1% for villas. October saw rates pick up slightly but with the negative media attention Dubai received in November, rents fell once more.

“Sought-after developments include Downtown Burj Dubai, Palm Jumeirah and Dubai Marina as well as Arabian Ranches and Springs as they offer residents an abundance of retail and leisure facilities and are in prominent locations,” the report says.

The office sales market in Dubai saw limited transaction activity throughout 2009, the report adds. Sale prices also saw little movement in the latter half of the year.

The majority of buyers were said to include small private companies or individuals who looked for small units in finished developments at reasonable prices. In 2009, the majority of transactions were for units below the AED1,000 per square foot mark.

It was a similar picture in the Dubai office rental market which experienced no significant changes in the last quarter compared to Q3 2009. Enquiry levels declined slightly due to the holidays and companies delaying decision-making until the beginning of 2010, said Asteco. Developments that continue to generate interest due to location and quality include DIFC and Sheikh Zayed Road. However, market expectations and developer’s acceptance is often far apart.

Developers have begun handing over units in Business Bay to owners. “Many projects in the area incorporate distinctive features such as smart homes or offices, Oyster (Offices Yielding Superior Targets through Efficiency and Relaxation) and Green Building concepts which help to differentiate them from the competition,” the report adds.

“However, incomplete infrastructure and lack of support facilities hinder the leasing of units. Ultimately, complete infrastructure, ample parking, easy access to major road networks and excellent property management are vital for the take up of office space.”
In Q4 2009, the average gross rental rate for office space across Dubai stands at AED175 per square foot per annum, says the report. Rates decreased by 31% since the beginning of the year.

Tecom saw the highest drop with 48% since Q1 2009 due to the increased supply in the area. Deira, on the other hand, only decreased by 20% as the area remains popular; especially with the anticipated opening of three Metro stations in a five kilometre radius.

Sale prices pick up for prime Dubai apartments

Sale prices pick up for prime Dubai apartments

Communities with completed facilities are preferred choices; but rental rates see minimal change, says Asteco report

Apartment sales prices for completed projects in the prime Downtown Burj Dubai area have seen the highest quarter-on-quarter increase of 8%, according to the largest property services company in the United Arab Emirates.

In its Dubai Q3 2009 report, Asteco says sales apartment prices for Downtown are up from AED1,200 per square foot in the second quarter to AED1,300 per square foot in the third quarter, “thanks to the Dubai Mall, the Dubai Fountain and improved infrastructure in the area“ which is overlooked by Burj Dubai, the world’s tallest building nearing completion.

However, across the whole of Dubai sale prices for completed apartments and villas have increased only slightly with an average 1% and 3% compared with the second quarter, according to the report. Rental charges have seen minimal change compared with the same period.

Asteco, which carries out comprehensive property market analysis, says Jumeirah Beach Residence has also seen a 5% sales increase as a result of continuous opening of retail units, gyms nearing completion and strong interest in leasing from both Dubai and Abu Dhabi residents.

Asteco CEO Elaine Jones said: “Both Downtown Burj Dubai and Jumeirah Beach Residence are highly desirable, fully established communities, which are exactly what the market is seeking. A completed tower is no longer enough if it is not part of an integrated community with convenient access to schools, hospitals, transport, leisure and entertainment facilities. In terms of villa communities, The Springs and Arabian Ranches are faring well for the same reasons.”

Asteco reports that transactions and enquiries have picked up in line with mortgage availability. Demand is predominantly for smaller units such as studios and one bedroom apartments, or two and three bedroom villas or townhouses.

“It should be noted, however, that the increased interest in completed communities has resulted in landlords inflating their prices,” the report adds. “In addition, the option to lease these units is making price negotiations less flexible as the need to sell to generate income is lower.”

In the Dubai apartment and villa rental market, Asteco reports that “increased interest and rumours of economic recovery have caused some landlords to raise their rents. But many of these units remain empty for several months due to a significant amount of supply and increased competition.”

Overall, however, apartment and villa rental rates have seen minimal changes of in the third quarter of minus 3% and 0% respectively, according to the report. Currently, average rental rates for studio apartments are AED45,000 while one, two and three bedroom apartments command AED76,000, AED103,000 and AED139,000 respectively.

Rates for studios and one bedroom apartments are beginning to stabilise, whereas there is still room for further drops for larger units, says the report. Villas and townhouses are available on average for AED117,500 for two bedrooms, AED180,500 for three, AED227,500 for four and AED278,500 for five bedroom units respectively. Asteco says the majority of inquiries are for Jumeirah and Umm Suqeim where tenants are looking for three-bedroom units between AED150,000 and AED180,000.

Communities alongside Sheikh Zayed Road are the preferred choice, whereas developments around Emirates Road suffer from the location disadvantage, the report adds. “However, this is likely to change next year with the opening of Al Maktoum International Airport, the biggest airport in the world.”

Asteco reports a noticeable increase in activity in the leasing market prompting tenants to get better value for their money, either by decreased rents, increased property size, better quality specifications, better amenities and accessibility. “Despite the Real Estate Regulatory Agency’s attempts to provide a rental index earlier this year, it is these influences which are truly driving current rental market activity,” the report added.

The Asteco Dubai Q3 2009 report also highlights the static office sales market, due to the economic downturn, along with further declines in office rental rates. For more details, please visit www.asteco.com

Dubai Metro expected to play important role in office lease market, says Asteco

Location again a priority as rental prices soften

Dubai Metro expected to play important role in office lease market, says Asteco

With lease rates in Dubai declining as more new buildings become available, office location rather than price will again become a priority in determining where a company sets up business, says Asteco, the largest property services company in the United Arab Emirates.

“The decline in the real estate market is helping to re-position Dubai once again as an attractive business location giving companies the ability to shop around for the best value for money,” said Asteco CEO Elaine Jones. “Offices which can offer substantial amenities for staff will be the first to benefit,” she added.

In addition, evidence from many international markets consistently reveals that land and property values and ultimately rentals, within the vicinity of stations linked to new metro lines increase significantly - 57% in the case of the Tokyo – Kobe line in Japan.

However, what is interesting is that the increases do not occur usually until after the stations physically open, not when the line is announced or under construction. According to the RTA, the Ibn Battuta metro station will be operational by February 2010.

“This is not surprising,” said Jones. “In property matters it has always been a question of location, location, location and office developments like Ibn Battuta Gate - located in close proximity to a Metro station as well as a shopping malls and ample parking - will increasingly become the preferred option.

“As more Metro stations are opened and people become aware of the benefits, the ease of commuting by Metro for office staff will prove to be an increasingly important element in company decision making about where to locate.”

Phase one of the new Ibn Battuta Gate mixed-use development is being managed by Asteco Property Management on behalf of Dubai-based owners Seven Tides.

“Ibn Battuta Gate is located at the very heart of Dubai’s new residential and commercial corridor,” Jones added. “The complex is within 400 metres of a Metro station due to open soon which will provide direct access to the commercial business heart of the Jebel Ali free zones as well as Dubai Marine, Jumeirah Lake Towers, Internet and Media City, Dubai Financial Centre, Dubai World Trade Centre and central Dubai itself.”

With 40,000 square metres of leaseable modern office space spread over 11 floors, the office complex is also next door to the mall with its 300,000 square metres of retail space and entertainment attractions. Ibn Battuta Gate, which features a dramatic entrance arch larger than the Arc de Triomphe in Paris, also has direct access to Sheikh Zayed highway. The office complex has basement parking for over 350 cars and automatic parking for a further 760 vehicles.

“In further phases the Ibn Battuta Gate offices, will also benefit from a five-star Moevenpick Hotel and a residence, so office tenants will be able to take advantage of short or long term accommodation as well as the hotel facilities,” added Jones.

Asteco appointed office leasing agents for Ibn Batutta Gate - Seven Tides’ flagship mixed-use property development

Asteco opens gateway to new business

Asteco appointed office leasing agents for Ibn Batutta Gate - Seven Tides’ flagship mixed-use property development

Asteco, the largest property services company in the United Arab Emirates, has been appointed sole leasing agents for the offices at the iconic Ibn Battuta Gate mixed-use development which aims to attract businesses with commercial interests in both Dubai and Abu Dhabi.

Ibn Battuta Gate is a new build corporate flagship mixed-use property developed by Dubai-based Seven Tides. The development features a dramatic entrance arch larger than the Arc de Triomphe in Paris. Located next to Ibn Battuta Mall on the Sheikh Zayed highway, the development offers a combination of 40,000 square metres of office space, residential apartments and a five-star hotel and spa, which will be managed by Mövenpick Hotels & Resorts.

A new name for many in the hospitality sector, Dubai-based Seven Tides is an internationally oriented holding company established in 2004. Seven Tides has a portfolio of property comprising new build and strategic acquisitions in the hospitality, commercial and residential sectors in London and Dubai.

“This appointment clearly reflects our position as market-leaders for leasing high-end office space,” said Asteco CEO Elaine Jones. “In keeping with the overall development, the quality of the office accommodation is five-star, located at the very heart of Dubai’s new residential and commercial corridor providing an ideal gateway for businesses with commercial interests in either Dubai or Abu Dhabi.”

With 40,000 square metres of leaseable modern office space spread over 11 floors, the Ibn Battuta Gate office complex is next door to the Ibn Battuta Mall with its 300,000 square metres of retail space and entertainment attractions.

In addition, the offices are adjacent to one of the Dubai Metro stations, which is due to open in September this year, providing easy access via a direct link to the nearby free zones as well as Dubai Financial City and the Dubai World Trade Centre.

There is also direct access to the Sheikh Zayed highway, ideally situated for Jebel Ali Free Zone, new Al Maktoum International Airport or further a field to Al Raha Beach and on to Abu Dhabi. Close by in the opposite direction are Dubai Marina, Jumeirah Lake Towers, Dubai Internet City, Dubai Media City and the rest of Dubai. The office complex also has basement parking for over 350 cars and additional parking for a further 760 vehicles.

“We are very proud of the Ibn Battuta Gate development. Businesses located here will be able to embrace a lifestyle that balances corporate with leisure - business with pleasure,” said Michael Scully, Managing Director Hospitality for Seven Tides.

For further information about Asteco, please visit www.astecoproperty.com

For more information about Seven Tides, please visit www.seventides.com


Photo caption: The iconic Ibn Battuta Gate development – the gateway to new business.

About Asteco

Founded in Dubai in 1985, Asteco is a major regional and international real estate services firm and the largest property services company in the United Arab Emirates. Asteco offers clients independent market analysis, design development consultancy and valuation services, sales and leasing services, as well as asset and property management services.