Catherine Hislop was wary at first about moving to the 27-storey The Lofts in Dubai's trendy Downtown development. Ms Hislop, 31, a recruitment consultant from London, had recently seen The Towering Inferno, a 1970s film about a skyscraper going up in flames, and wondered if she would be better off renewing the lease on her shared villa in Umm Suqeim.
But once she saw the stunning view of the Burj Khalifa, the tallest tower in the world, from the balcony of her one-bedroom apartment on the 10th floor, the fear quickly subsided. Now she would not swap her apartment for all the villas in Dubai. "It was nice to live close to the beach for a year but I've always been a city person and it's great having places like Dubai Mall and Souq al Bahar on your doorstep," Ms Hislop says.
"There's also a good mix of low and high-rise buildings here so you don't feel as if you're crammed in. I hardly use my car at the weekends now." With the Dubai Fountain and Burj Khalifa pulling in hundreds of tourists each day, Downtown has come into its own in the past year. The restaurants and shops that mark the waterway alongside Souq al Bahar in the Old Town throng with customers day and night, creating an urban vibe.
"Downtown is a hot property at the moment, with it being new and the lifestyle that it offers," says John Davis, the Middle East chief executive of the property consultancy Colliers International. Enjoying this lifestyle, and with an address to brag about, was once the realm of the privileged few. But a sharp decline in property prices and rents of as much as 50 per cent has made places such as Downtown more affordable, enabling middle-income earners such as Ms Hislop to rent her own place there.
It costs between Dh70,000 (US$19,058) and Dh90,000 a year for a one-bedroom apartment in new buildings such as The Lofts and Burj Views - almost half the rental price of Downtown two years ago. "I'd got to the point where I'd had enough of sharing; prices have come down so much and landlords are more willing to negotiate," says Ms Hislop. Up until a few years ago, Dubai tower living was mainly concentrated around the Trade Centre area of Sheikh Zayed Road. Since then, popular areas such as Dubai Marina and Jumeirah Lake Towers have mushroomed, while residential towers in Business Bay, just behind Downtown, are starting to come on stream.
While Jumeirah Lake Towers might not be as hip as Downtown, it draws a crowd from Abu Dhabi due to its location, says Charles Neil, the chief executive of the estate agent Landmark Properties. It is also a lot cheaper, as a one-bedroom flat can be rented for as little as Dh45,000 a year. "Jumeirah Lake Towers is popular and is filling up ? price is also very important," says Mr Neil. But fast-paced living in the sky is not for everyone, says Andy Dukes, who lives in a villa on Palm Jumeirah.
The former owner of an e-greeting business from London was one of the first people to move on to The Palm in 2007, when there were few amenities. Mr Dukes owns two four-bedroom villas, one in which he lives and the other he rents out. Each has its own private beach. He lives alone and spends his spare time walking along the beach or kayaking, and has seen The Palm come to life since moving in. "What has changed phenomenally is that the facilities here have gone from being very limited to a number of things that have opened," Mr Dukes says.
"There are restaurants at the Shoreline Apartments, three ATMs, a bakery, mini-marts, a flower shop and a 24-hour deli. All of this has happened within the last couple of years. And more facilities will open up as more buildings open." But while prices have fallen on The Palm, you still need to be on a good salary to afford the rent, with the cheapest one-bedroom apartment costing about Dh90,000 a year.
Hassan Haroon and his family have the best of both worlds. They live in a three-bedroom apartment at the plaza level of Jumeirah Beach Residences, where there is a shaded courtyard with shops and cafes. Jumeirah Beach Residences is a development of about 40 towers. Mr Haroon, a banker and father of one from Pakistan, has a short stroll down to The Walk on the ground level - another bustling area of street cafes - and is just across the road from the beach.
"There's a great sense of community living on the plaza level," he says. "We have a fountain and lots of greenery. "It's away from the main road, so there are no cars or any other intrusions." Mr Haroon has a partial view of the sea from his apartment and says the development brings back memories of Montreal, Canada, where he lived before coming to Dubai in 2007. "Jumeirah Beach Residences feels like home, whereas other areas, like Downtown, would feel more as if you're living in a hotel. I wouldn't change it," he says.
Whether you live in a tower or villa, it's a question of lifestyle choice, says Mr Neil, with trends now being influenced by the drop in prices and greater availability of property. "Places like Downtown are popular but so are villa communities like The Springs and The Meadows, and a lot of projects are opening up further out of town in places like Mirdif, where prices are very attractive," he says.
"Families tend to prefer villas for the space. Previously they were forced to live in apartments because villas were unaffordable. Amenities are also very important, some projects are less mature than others." agiuffrida@thenational.ae
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Three ways to boost your credit score
Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:
1. Make sure you make your payments on time;
2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;
3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.
The Details
Kabir Singh
Produced by: Cinestaan Studios, T-Series
Directed by: Sandeep Reddy Vanga
Starring: Shahid Kapoor, Kiara Advani, Suresh Oberoi, Soham Majumdar, Arjun Pahwa
Rating: 2.5/5
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Profile
Company name: Jaib
Started: January 2018
Co-founders: Fouad Jeryes and Sinan Taifour
Based: Jordan
Sector: FinTech
Total transactions: over $800,000 since January, 2018
Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups
The Breadwinner
Director: Nora Twomey
Starring: Saara Chaudry, Soma Chhaya, Laara Sadiq
Three stars
Day 5, Abu Dhabi Test: At a glance
Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.
Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.
The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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