FutureBrand's 2008 Gulf Real Estate Study

FUTUREbRAnD’S 2008
FutureBrand is a full-service global branding firm. Shaping with Strategy.
Communicating with Design. Implementing for Impact and Reach. We build

GULF REAL ESTATE
real estate brands that aim to increase value and sales velocity, inspire wanderlust
and fire imaginations – all over the world.
www.futurebrand.com/gres

STUDY

Year four of FutureBrand’s Gulf Real Estate Study
showcases an ever-expanding category in a thriving
region. Global teams have assessed new trends, practices
and accomplishments. Quantitative research was
conducted exclusively for this Study. A matured focus,
incisive points of view and extensive industry expertise
have again resulted in the only comprehensive marketing
assessment of the Gulf real estate industry.

FUTUREbRAnD’S 2008 GULF REAL ESTATE STUDY FUTUREbRAnD’S 2008 GULF REAL ESTATE STUDY

ARE YOU A FUTUREbRAnD?
With unparalleled experience pioneering brands in the As our name suggests, a focus on the future is an essential
region, FutureBrand believes that our expertise and not part of our branding process. This, combined with our
just our understanding sets us apart from others. We are unique and proven brand philosophy, is how we help
the only brand consultancy to deliver a powerful point clients create, deepen and mature brands holistically.
of view, tools and methodologies tailored for the real A true “futurebrand” creates a new definition of brand
estate and destination branding industry. excellence – a brand that thinks ahead to stay ahead.

i wAnT... mAkE mE...
AwAREnESS

THE TAkE nOTicE
ESSEnTiAL
PREFER YOU
DEciSiOn
THE bUY/invEST
ESSEncE
FEEL SATiSFiED

TELL OTHERS
ADvOcATE

PERFORmAncE TRAnSPAREncY AUTHEnTiciTY EmOTiOnAL EnGAGEmEnT
wiDE cHOicES SEnSE OF PURPOSE

DEciSiOn AnD
FRAmEwORk mOTivATiOn
AnD DESiRE The framework is linked to your brand’s maturity and
how customers (existing and potential) view it on a
We begin brand development by creating a strategic
continuum from awareness to advocacy. This helps us
framework that enables us to identify the core focus
to understand how and why customers make purchase
for your brand. This is customized for each of our
decisions and determines what can trigger decisions
clients and aims at optimizing your brand to deliver
to buy or invest. The framework also considers what
effectively. Using unmatched category insights and
barriers the brand needs to overcome strategically and
combined strengths in consulting and design, we define
creatively. These insights allow your brand to be finely
the opportunity and create a value proposition for your
tuned to its audiences and their relative requirements.
business and a visual expression for your brand that is
We aim to build brands that contribute to high levels
ownable, differentiating and lasting. We aim to unlock
of customer advocacy.
what customers desire.

1 2


2008 YEAR in
REviEw
cOnTinUinG nOTAbLES FROm 2007
This year has brought interesting events to the marketplace. Evidence of last year’s buzz of sustainability and green initiatives is still growing
global economic volatility, government intervention and category maturity strong, and customers are still struggling to get answers, information and
continues to be seen. New urbanism, the environment and ultimate living assurances.
are trends consistent with a growing industry that is looking ahead, though
corruption and increased regulation demonstrate the need for further While Dubai seemed a bit more subdued this year, Abu Dhabi continued to mORE GREEn THAn EvER RAmPAnT inFLATiOn SUPERSTAR bRAnDinG
oversight and cast a shadow over the category. initiate large-scale projects and garner considerable attention. Development Green fever is still in the air, and sustainability Inflation remains a challenge for many in One-upping starchitects, celebrities like Brad
in Bahrain slowed although the giant Diyar Al Muharraq was introduced. Oman and environmental awareness remain a top the Gulf. Oman saw it reach an 18-year high Pitt and Pamela Anderson are endorsing and
Real estate in the Gulf seemed to offer more of the same this year. Countless had a strong year despite some issues with the Blue City project. And Qatar focus for regional developers. Examples of 14%, and a similar rate is attributed to helping to design eco-friendly projects in
towers, smart office buildings, residential communities and retail malls remained one of the most steady real estate markets in the region. include Emaar’s Mishrif Heights and Qatar. Inflation in Saudi Arabia reached Dubai and Abu Dhabi.
have been created. Luxury continues to be a dominant theme, although Dubai Properties' Mohammed Bin Rashid 10.6%, a 30-year high, while some predict
Gardens. that inflation will soar to a record 12% in PRE-LAUncH TREnD cOnTinUES
the UAE. Most major developers continued to gauge
THE TOTAL vALUE OF REAL ESTATE PROjEcTS UnDER cOnSTRUcTiOn in A biRD, A PLAnE, A ROTATinG TOwER
The 420-m Dynamic Tower will feature 80 DUbAi GETS FinE DininG
market interest and reaction to pricing
through soft or pre-launch events.
THE Gcc iS mORE THAn US $2.39 TRiLLiOn1 apartments that spin, at voice command,
360 degrees around a central column
Top chefs continue to open restaurants in
Dubai. Michelin chef Guy Savoy is creating a DEvELOPER EXPAnSiOn

nEwS AnD nOTEwORTHY
by means of 79 power-generating wind restaurant at the Tiger Woods Dubai. Nobu is Last year’s trend has continued to progress,
turbines located between each floor. on its way, as are additional upscale offerings with major developers announcing expansion
It is slated to be operational in 2010. from Michelin chefs Michel Rostang and plans in the region and beyond. Emaar now
Santi Santamaria. features offerings in Pakistan, Damac in Iraq,
and Limitless in Jordan and Turkey.
The GCC retail real estate market is the fastest-growing in the world, Abu Dhabi’s share of the UAE mortgage market is forecasted
with more than 16.35 million sq m of gross leasable area (GLA) to increase to 22%, up from 5% in 2007. 10

nEw nOTAbLES
expected to be complete by 2010.2
The construction sector currently contributes 5% of Saudi Arabia’s
The UAE was recently ranked fourth overall in global land sales, US $278 billion GDP.11
jumping 23 spots since the same time last year. The UAE now
claims 5.8% of worldwide real estate sales, propelled by a whopping More than US $180 billion of investment is needed in Saudi Arabia’s
increase of 1,348% since 2007.3 real estate sector to meet expected demand for housing projected mORE bRAnDS…EvERYwHERE wHAT HAPPEnED TO EXcLUSivES? HOTEL EvEnT LAUncHES
for 2015.12 Developers seem to be going to market Exclusive partnerships and associations seem As space and construction costs in the region
Mortgage lending in the UAE, which opened its property sector to with a growing list of associated or partner to be a thing of the past. While Trump Tower continue to skyrocket, many developers
foreign investment in 2002, almost doubled in 2007.4 Real estate transaction volumes in Kuwait decreased by 65% in July brands. These range from amenities to is actively being promoted by Nakheel as the have begun to stage significant launch events
2008, marking the fourth consecutive month of decline following finance partners and can sometimes result most expensive property in Dubai, this does in five-star hotels to wait for the completion
Dubai’s land transactions totaled US $39.3 billion in just the first new regulation banning residential property trading. The total in customer confusion about which is the not seem to stop Donald Trump from being of – and in some cases, replace – sales
half of 2008, and are on the way to easily surpass the US $50 billion value of realty sales during May 2008, as compared to May 2007, lead brand. linked to Hydra Properties. centers.
mark – the total completed during all of 2007.5 declined by 36%.13
OTHER EmiRATES SHinE AUcTiOnS TRAnSPORT wiTHin DEvELOPmEnTS
Roughly 3,000 towers (both mid- and high-rise) will be in various The government of Qatar has allocated 10% (US $7.3 billion) of its Major developments are taking shape Auctions are becoming a more common Developers across the region are embracing
stages of planning, design, development and construction in Dubai projected expenditure for the year toward infrastructure investment outside the usual real estate hotspots in such way to sell. Jumeirah Golf Estates has long localized transport networks as a way to ease
between now and 2025.6 aimed at facilitating its burgeoning real estate growth.14 cities as Ajman and Ras Al Khaimah, which used them effectively to garner record-high the flow of traffic within their developments,
wisely promote themselves as weekend spots prices, and this year Nakheel held auctions leading to pedestrian-friendly areas.
Shanghai, with a population of 20 million, and Moscow, with a The Omani construction sector will grow at 8.7% per annum during or calmer respites. Ajman also recently with the Golden Mile and Canal District, as Examples include Downtown Burj Dubai,
population of 10.4 million, currently have approximately the same the period from 2008-2012, and is expected to reach a value of introduced a law allowing foreigners to did Emaar for villas in Arabian Canal and City of Arabia and The Palm.
amount of office space as Dubai, a city of 1.6 million.7 US $2.5 billion in 2012, which would contribute 4.7% to the own freehold land and gained notoriety plots in Emirates Hills.
Omani GDP.15 with Al Zorah. YOU bUY iT, YOU kEEP iT
Abu Dhabi’s real estate sector boasts total project values of more iPO FEvER Both Aldar and Nakheel are restricting
than US $460 billion.8 Considerable growth in the Omani real estate market is expected biG PLAYERS RE-bRAnD There has been talk of IPOs for major players “flipping” and placing limits on the resale of
to continue, with the value of demand exceeding US $20.8 billion Some major developers have re-branded this Damac and Nakheel as well as the property their properties in an effort to curb market
Abu Dhabi experienced a 200% increase in the commercial real by 2010.16 year, notably Deyyar, Damac and Al Burj. arm of investment bank Ithmaar. overheating.
estate rental sector, reportedly the highest in the world.9
3 4


EmERGinG TREnDS
THE PRAcTicAL THE FUn THE nOT-SO-FUn
EmERGEncE OF ASSET mAnAGEmEnT bRAnDS PRivATE PERFORmAncES nO mORE RESiDEncY viSAS DELAYS, cAncELLATiOnS AnD cOncERnS
As communities get completed and residents move in, the notions Developers are pulling out all the stops to attract buyers, especially Dubai has agitated many homebuyers by no longer guaranteeing Above and beyond the usual delays, several prominent developers
of community maintenance requirements and owners’ associations to high-end products. Dubai Pearl flew 150 potential investors to residency visas for property purchasers. It has been reported that have canceled (or tried to cancel) projects due to unanticipated
have begun to gain momentum. Special groups have been created Paris for a private Elton John concert, while Desert Dream brought some master developers have recently removed this clause from upsurges in building material and labor costs and overly ambitious
by many developers (Nakheel Asset Management, Emrill, Wasl), but recording artists Enrique Iglesias, Elissa and Raghav to Dubai for a their contracts.18 designs. Others have felt the sting of unhappy investors and
this still appears to be an area that most do not spend time or money private concert hosted by ex-footballer Ian Wright. Nurai’s launch customers who have taken their complaints public. In Dubai,
on. As a result, critical customer communications are often handled in Abu Dhabi included helicopter flights and a Lionel Ritchie FOREiGn PROPERTY invESTORS LOOkinG ELSEwHERE intervention is likely the reason that more developers have not
with black-and-white photocopies attached to a blackboard. performance. Gulf domestic investors appear to be top players in the regional abandoned projects. Notable projects experiencing issues this year:
market after current economic conditions and Gulf prices have Damac’s Palm Springs project, Dubailand’s Plantation Equestrian
EnTERTAinmEnT LURE caused many foreign investors to look for cheaper opportunities. and Polo Club, Blue City in Oman, Sokook’s Ivory Towers and
Entertainment-based developments continue to be on the rise. Legislative measures to combat property price inflation – such as Schön’s Dubai Lagoons. Interestingly, some developments have also
Boasting sporting venues and theme parks as central attractions, rental caps, trading restrictions and possible capital gains taxes – have been delayed or canceled due to fears about adequate infrastructure
developments like Dubailand and Yas Island look to attract tourists, made Gulf property less appealing for some foreign investors. and utilities. These include Al Salam City in Umm al Quwain and
while also being home to residential communities. Four years from Kuwaiti authorities have banned residential property trading in Al Ameera Village in Ajman.
now, the UAE will have almost 30 theme parks. Kuwait is also an effort to curb inflation, while similar restrictions have been
experiencing an amusement park boom, with recent announcements announced in Dubai.
of a Cartoon Network–branded theme park and an Islamic-inspired
heroes entertainment park called 99 Village.17

5 6


wHY bELiEvE?
is the industry at a crossroads? will recent rapid growth serve as the foundation of continued success?
wHY nOT?
Or have higher costs, corruption and bureaucracy triggered a downward spiral?

• EXPAnDinG POPULATiOnS AnD GDP GROwTH • CORRUPTION

• GOVERNMENT INVESTMENT AND SPENDING • DELAYS

• GENERAL GROWTH OF SOVEREIGN STATES • LACK OF TRANSPARENCY

• GLOBAL PLAYERS AND BRANDS INVOLVED • INFLATION

• VISIONARY RULERS • SATURATION

• YOUNG, GROWING POPULATION • BUREAUCRATIC REGULATIONS

• THE PAST EIGHT YEARS OF SUCCESS • ANTI-SPECULATOR/FLIPPING MEASURES

• GLOBAL RECESSION
7 8


cORRUPTiOn in Dubai, 2008 proved to be a year of shocking corruption
REGULATiOnS ...and increased government measures in response

major developers and related companies have February 2008 saw a new law issued by the government of Dubai in order to regulate
the management of shared facilities in buildings to remove ambiguity about
whether the developer or owner is responsible for such matters.
fallen under scrutiny for alleged backhanded A new mortgage law was created to increase transparency to further protect
the rights of buyers and lenders. The law stipulates that mortgage contracts

deals, kickbacks, embezzlement and a slew of must be registered with the Dubai Land Department and provide all the details of
the specific loan.

A new Dubai property court was established to deal with civil cases related to real
other charges. The government suggests that even estate. The new court will initially have 10 judges, who are currently undergoing
training with the Real Estate Regulatory Authority (RERA) regarding the specifics
of the Dubai marketplace.
more charges and related regulations to prevent
A property rental index that provides pricing recommendations for rental homes in
Dubai will launch in early 2009, with the hope of preventing landlords from
corruption are underway. exaggerating annual rent prices.

Dubai’s Land Department passed a law making it compulsory for off-plan property
sales to be registered with them. The law also bars developers from charging
transfer fees for such sales.

9 10


THE REGiOn AT A GLAncE mUScAT, OmAn
The Gulf is continuing to show growth, with both Abu Dhabi and Dubai focusing on infrastructure to meet Ranked as one of the top 10 places to visit by
the related needs of their developments. Overall, prices are climbing with middle-income end users Condé Nast Traveler, Oman is becoming the
DUbAi, UAE destination of choice in the region.34 With
often priced out of the majority of new offerings. Dubai is enjoying continued and unprecedented real estate major developments taking shape across the
growth, with property prices rising by approximately 40% since country and numerous golf resorts already
last year.30 The government is investing heavily in infrastructure, attracting international attention, Oman is set
such as the light rail network set to open in 2009, as well as roads to increase its real estate sector considerably,
and public spaces. Amid constant attention on the world stage, despite some well-publicized missteps with
mAnAmA, bAHRAin Dubai continues to thrive. Approximately 25,000 people per Blue City. In fact, the volume of real estate
Recently ranked as the best-positioned economy in the GCC, Bahrain is continuing month take up residence in Dubai: that’s 33 new people per hour deals in Oman has risen by nearly 50% in the
development of its collection of projects, notably Diyar Al Muharraq. choosing to make the city their home.31 past two years.35

2008 Updates & milestones 2008 Updates & milestones 2008 Updates & milestones
• Bahrain’s real estate market faces a record year in 2008, with an estimated turnover • Corruption charges were brought against staff members • The average price per sq m for residential land in
of US $5.7 billion. This number represents a 58% increase in market transactions from of Deyaar, nakheel and Sama Dubai in cases unrelated to Oman increased by 253%, reaching US $135 per
2007, based on the first quarter’s results of US $1.4 billion.19 each other. sq m in 2007, compared to US $38 in 2005.16
• The government is delaying projects in order to curb inflation and attract investors.20 • Dubai Metro conducted limited trial runs of Dubai’s first-ever • The government introduced a 7% cap on
• Diyar Al Muharraq, a US $3.2 billion mixed-use urban development that will be one of rail network, set to launch in September 2009. annual rent increases to protect tenants
bahrain’s largest, was recently launched and is slated to break ground in early 2009.21 • Emaar plans low- and middle-income housing developments against record inflation.36
• Reef Island is expected to complete its first phase of construction in early 2009. in the UAE and abroad.32 • The government recently disallowed property
• Bahrain Bay construction is well underway and plots have been sold to a variety of • Dubai Properties unveiled the US $60 billion, eco-friendly owners from issuing eviction notices to
global developers. mohammed bin Rashid Gardens project masterplan.33 defaulting tenants.36
• Construction of Bahrain’s biggest mall, Bahrain City Centre, is now complete. By next • Nakheel launched the Veneto and Badrah districts of the newly • Old Town, a 36,000 sq m residential and
year, its two hotels and an indoor/outdoor water park will open.22 re-branded waterfront, along with Dubai Promenade and commercial project in Ruwi, was launched; it
• Marina West, Bahrain’s first gated beachfront high-rise residential and lifestyle The Lake District. features apartments and a bazaar.
community, announced that the sub-structure work for all of its residential towers • Trump Tower launched as the centerpiece on Palm Jumeirah • Foreign ownership rights have been extended
is complete and distinctly visible.23 with events in new York and california. to include non-Gcc nationals, but only in
• 1000 villas from Durrat Al Bahrain, a US $3 billion mixed-use island development, • Burj Dubai, standing 900 m high, became the tallest structure certain designated areas.37
will be delivered in november 2008.24 in the world. • The US $1.6 billion Omagine resort received
government approval.
• The Blue City project failed to sell units and
missed quarterly targets.38
• 85% of the advanced earthworks has been
completed for Salam Yiti – Oman’s premier
lifestyle resort project.39
• The Wave, Muscat will deliver 120 villas and
DOHA, QATAR townhouses by the end of 2008, with residents
Buoyed by rapid development of infrastructure projects and increasing incomes, Qatar’s development market moving in shortly thereafter.40
is looking strong. The country has been named as the world’s second-fastest growing economy in the property
sector in 2008.25

2008 Updates & milestones
• Qatar has agreed to freeze all rents signed since 2005 for the next two years. Prior to this law, Qatari landlords could
raise rents between 5% and 20% on rental contracts signed before 2005, depending on the rental price.26
• The Qatar Real Estate Investment Company plans investment of US $2.75 billion in housing projects over the next
five years.27
• Qatar’s biggest project, the Lusail development, which is organized into 17 districts and estimated to house 200,000
residents, has completed its conception stage. The infrastructure, including roads and an underground train network,
is slated to be completed within the next three years.28
• Damac launched two residential towers at the Lusail development: Garden Heights and The Terrace at Fox Hills.
• A total of 93,000 residential units are planned to be delivered by 2010.29

11 12


THE REGiOn AT A GLAncE

jEDDAH, SAUDi ARAbiA kUwAiT ciTY, kUwAiT
Saudi Arabia made a splash in the region’s real estate sector with announcements of mega-projects Kuwait offers some interesting development opportunities despite
that will become cornerstones of the country's future. Total real estate investments in government restrictions on property trading. Kuwait is expected to have
Saudi Arabia, which is the largest construction market in the Middle East, are estimated at the third-largest supply of retail space in the Gulf, with an expected
US $270 billion, and the total value of new projects is likely to reach US $410 billion this year.41 growth of 10% by 2010. 46

2008 Updates & milestones 2008 Updates & milestones
• It has been reported that Saudi Arabia’s Shura Council has approved a draft of a long-awaited • Kuwait will build the world’s first sculptured skyscraper, Al Hamra,
mortgage law. The law, which has been in the works for almost a decade, allows much wider access a commercial tower with two tilting walls.
to property ownership in a country where only one out of five people own homes.42 • Silk City, a 250 sq km US $132 billion development, launched this year.
• The construction sector currently contributes approximately 5% to the overall GDP.11 When complete, it will create 430,000 jobs and homes for 750,000 people.47
• Jeddah Gate, Emaar’s flagship KSA project, is said to be on schedule with its infrastructure work.43 • The Avenues, a shopping, leisure and business destination, is set to open in
• Dar Al-Arkan was awarded a contract by the local authorities for the development of the Khozam 2010. The development will offer 140,000 sq m of retail space, including 10
Palace project. This multiyear initiative, to be executed through a joint venture with the cinemas, an entertainment complex, 39 restaurants, four-star hotels and a
local authorities, is aimed at rejuvenating the area surrounding the historical khozam Palace, convention center.17
located in the center of jeddah.44 • Al Aqeeq Marina was soft launched by Hydra Properties at Cityscape USA.
• Despite problems with excess water and coral reefs, the Lamar Towers project, slated to be the
tallest building in jeddah, is on schedule.45
• Despite reports of being scaled back, designs for the Mile High Tower, slated to be 1,600 m tall
and twice the height of burj Dubai, will be publicly unveiled in October 2008.

AbU DHAbi, UAE
Abu Dhabi has built its reputation from the ground up over the last few
years. It is now moving aggressively to expand and has recently been
ranked by Jones Lang LaSalle as a “power city” on its way to becoming
a world-renowned “urban star.”48

2008 Updates & milestones
• Expected to be operational by 2030, the new capital of Khalifa City will
house all federal ministries in a 49 million sq m area. Project costs are
estimated at US $40 billion.49
• Work has started on Yas Island developments. With a cumulative value of
US $39 billion, the island will be a mixed-use development featuring golf
courses, a Formula One circuit and a Ferrari theme park.49
• Nurai by Zaya, a community of limited edition resort beachfront estates and
waterfront villas, was launched with a slick campaign and high prices.50
• Preliminary details have been released on a light rail project, currently in its
study phase, which will span 350 km.51

13 14


THIS YEAR’S BUZZ: THIS YEAR’S BUZZ:
nEw URbAniSm
Related to last year’s focus on the environment and sustainability,
DESTinATiOnS On THE RiSE
this year’s buzz has a slight nuance: the shift from theory to practice.
Another buzzworthy feature this year was the rise of many
New Urbanism has been behind some of the region’s major Gulf locations as destinations. not only promoting major
developments. While the term varies in how publicly it is being
used, some of the core practices should sound familiar to anyone
developments and attractions, several cities and countries
with real estate experience in the region. in the region have re-branded themselves or launched new
Developed in the 1980s, New Urbanism is an American design
trade and/or tourism-related campaigns.
philosophy. Its purpose is to create sustainable neighborhoods
that contain diverse housing and jobs, are walkable and encourage
social interaction. Examples include Seaside and Celebration, both
in Florida.41

bASic TEnETS
• Neighborhoods have discernable centers, which could be
a square or park
• A variety of home types are featured
• Shops and offices are nearby and satisfy the essential
needs of the community
• Streets within the neighborhood form a connected network
• Developments are on a human scale
• Access to, from and around the community is easy
• Walkability is a major requirement

There are many new projects in the Gulf using
New Urbanism as part of their core message:
“The population of city of Silk will live within 30 communities made up of “Designed around the needs of individuals, veneto is the waterfront district
five to seven villages, with each community served by its own schools, where the most innovative principles of community design produce
healthcare facilities and employment. weaving the fabric of these different a thoroughly comfortable and sophisticated environment…veneto is
areas together will be a network of parks and lakes, with the designers divided into small walkable neighbourhoods where every amenity and
promising that everyone living within the development will be no more convenience is only a short stroll from home, giving it a feel of comfort
than three blocks away from open space.” and charm.”35
— "City of Silk," Arabian Business, 21 August 2008 — Veneto website

“The mohammed bin Rashid Gardens represent the most innovative “Al Zorah…will be designed in accordance with the principles of
approach to urban form to be found anywhere in the middle East… liveability and sustainability…This mixed-use development will establish
Its 56 million square feet of verdant parks and gardens divide an 880 neighborhood communities, create synergy between activities and reduce
million square foot city into a network of sustainable neighbourhoods, car dependence…The city center contains urban forms of five distinct
each containing the molecule of daily life. Scaled around walkable types, with a mixed land use, predominantly residential above-ground
distances that provide easy access to food, healthcare and education, floor retail, underground parking, pedestrian walkways, squares including
this enlightened model of urban planning will help reverse the Gulf’s a major public square where large events can take place.”
existing commuter culture that has eroded both communities and the — Al Zorah brochure
environment.”
— Civic Arts “The master plan for our canalside development bears all the hallmarks of a
classic Limitless project. balanced, sustainable and planned around people,
“conserving energy, using natural cooling and light, employing efficient it includes green, open spaces and distinctive residential, commercial,
infrastructure, protecting water quality and ecologies, and creating retail and recreational components.”
comfortable, walkable places are all part of [Palm Deira’s] design — Limitless press release on Arabian Canal
vision.”
— Calthorpe

15 16


HYPERbOLE cOnTinUES TO
REiGn SUPREmE
“ULTimATE LUXURY”
“imAGinE LUXURY LivinG TAkEn TO THE nEXT LEvEL. A PLAcE OF EXTRAORDinARY bEAUTY wHERE YOU cAn EnjOY THE bEST OF wHAT LiFE HAS TO OFFER.”

“An ever lasting dream”“WheRe Life is PLayeD out to PeRfection”
“youR oWn Piece of PaRaDise” “There is only one masterpiece”
“THE mOST PRESTiGiOUS “Make this dream“Living “cREATED FOR A SELEcT FEw”
“Be in the center of luxury, with a new lifestyle”

ADDRESS... BIZ BAY” inTO YOUR your permanent ReinventeD”
“mAjESTic LivinG AmiDST inSPiRED viLLAS”
“mOvinG
DREAm
“Unbound luxury, bound by community” HOmE” address”
“The benchmark of corporate luxury” “Quality par excellence”
“ULTimATE PRivAcY AcHiEvED AmiD ELEGAnT SOPHiSTicATiOn”

“a commitment to perfection”
"a PLace to buiLD youR DReams"

“FOR SOmE PARADiSE iS
jUST A DREAm, FOR OTHERS
DEFininGfocused on the proliferation of luxury, this year
While last year we
A UniQUE vOicE TOP FIVE OVERUSED ExAGGERATED WORDS:
iT’S“WheRe LuxuRy meets PeRfection”
THEiR ADDRESS”
1. Luxury
we looked at extravagant claims a bit more broadly. Luxury is going “wHERE LUXURY iS EFFORTLESS”
strong, with more and more entrants jumping on this bandwagon. 2. Dream
“Paradise,” “masterpiece,” “dream” and “perfection” are other lofty 3. Paradise
claims developers make, suggesting that modesty is not a virtue when
it comes to real estate. In their efforts to top one another, more and 4. Live/Living
more projects are parroting the same tired phrases. All this adds up to 5. Reinvented
missed opportunity. Although it's a considerable challenge, in a sea of
overstatements, nothing is as memorable as a new message.

17 18


ARABICIZATION
EmERGES

ALDAR’S cOmPELLinG HOYAmAL cAmPAiGn SiGnALED A nEw ERA in REGiOnAL
REAL ESTATE ADvERTiSinG.

THE past year or two, there has been a definite increase in the use of
SEARcH FOR AUTHEnTiciTY PROjEcT nAmES
Over the AL FURjAn bAwAbAT AL SHARQ
Arabic, exemplified by the powerful “Hoyamal” campaign by Aldar. This
AL GHARbiA DiYAR AL mUHARRAQ
includes the names of developments as well as in mandated contracts,
signage and wayfinding. Where once English names seemed preferred AQEEQ AL mARinA LiwAn
(The Meadows, The Lakes), now Burj Dubai and Madinat Jumeirah ARjAn mAjAn
are standard and growing more common every day. This is especially ARZANAH MIZIN
evident with developers linked to the government.
ASmARAn nOOR AL Ain
The use of Arabic is a greater indication of the region’s growing AL ZEINA nUR
confidence in its own history and authenticity. No longer required to AL ZORAH OmRAn
look abroad for information and inspiration, many are now looking bAb AL bAHR REmRAAm
for unique brand voices from within.
bADRAH RUwAYA
19 bURj AL FARA’A SALAm RESORT 20


THE DiFFicULTiES
OF POSiTiOninG A REAL ESTATE bRAnD
With the explosion of development and the brands that have been created, most real estate postionings are already ULTimATE SOPHiSTicATED
vALUE AFFORDAbLE
in use in the Gulf marketplace, particularly those that center on luxury. For a new brand entering the playing field, in ELEGAncE LiFESTYLE
what unique opportunities are left?

THE bEST SELF-
LivinG in THE PLAcE in THE cOnTAinED FAmiLY THE LURE
OF ALL HAvEn
HARmOnY TO bE cEnTER AnD FiRST OF wATER
wORLDS
SUSTAinAbLE

ciTY nEw EXPAnD mODERn AnD
wiTHin HEiGHTS OF GREEn cOnnEcTED YOUR FiRST-TimE ULTimATE
ORiEnTED HOmEOwnERS in LUXURY TEcHnOLOGY
A ciTY LUXURY TO EvERYTHinG HORIZONS FOcUSED

FOR LivE ScEnic
HEARTbEAT nEXT REDEFininG SPA DESERT
THE SELEcT YOUR AnD
OF THE ciTY GEnERATiOn LUXURY LivinG PARADiSE
FEw vAcATiOn TRAnQUiL

wATERFROnT A bRiGHT ADDRESS THE SOciAL micRO-
EScAPE PROXimiTY
LUXURY FUTURE OF cHOicE cEnTER SEGmEnTS

21 22


US$400
biLLiOn
on infrastructure over the next three years
53

China and the GCC, each with enormous cash reserves from trade
surpluses, will be the two leading infrastructure investors of the future. 53
OTHER NOTABLE INITIATIVES:
ABU DHABI KUWAIT • A US $248 million iconic bridge • Saudi Arabia has envisaged an • Mubadala and GE recently entered a
Planning to spend upwards of US $15 billion by 2012 on Projections indicate the government will invest US $3 billion in connecting Abu Dhabi and Dubai is investment of US $8 billion to joint venture together. Over the next
infrastructure projects including road networks, bridges, the construction industry over the next five years57 nearing completion. It will be the third modernize and equip its ports.62 18 months, the companies plan to
public transport and a significant airport expansion54 bridge connecting the two cities and is invest US $40 billion in commercial
DUBAI designed to symbolize sand dunes.60 • Sharjah is constructing a US $45 and infrastructure projects in the
QATAR Spending more than 33% of its budget on infrastructure, million, 32-km road network across region, GE’s fastest-growing market.64
Allocated US $8.4 billion for spending on infrastructure approximately US $12 billion58 • A 13.7 km, four-lane tunnel is being new residential neighborhoods.
projects, notably the country's road network55 constructed in Abu Dhabi to help ease The plan includes a storm-water • Qatar has recently spent US $5.7
SAUDI ARABIA traffic congestion at a total cost of system, a sewage system and million on wastewater treatment
AJMAN Major project underway upgrading 866 km of roadways leading US $1.25 billion.61 auxiliary roads.63 projects.65
Spending US $2.4 billion in infrastructure, including a to Makkah, Madinah, Riyadh, Al Qassim, Jouf, Jizan, Tabuk and
coal-driven power plant56 Asir from all corners of the Kingdom59

23 24


AIRPORTS: DEVELOPMENT
ECONOMIC
ENGINES OF
Gulf countries are aggressively building and
increasing the size, capacity and stature of
AnD THE nEw PUbLic REALm their airports, often positioned as gateways
to the region and beyond. Airports are
US $23 US $11 US $9 US $2 US $1
UAE SAUDI QATAR KUWAIT BAHRAIN becoming more than transit centers; they are
ARABIA
valuable real estate, economic catalysts and
biLLiOnS SPEnT destinations in and of themselves.

DXb + jXb AUH bAH DOH
Dubai International Dubai, uae Abu Dhabi International / abu Dhabi, uae Bahrain International / manama, bahrain New Doha International / Doha, Qatar
Al Maktoum International
Already award-winning and well established, Dubai International Currently undergoing a major US $6.8 billion expansion, the Bahrain announced plans for a major expansion of its With a US $9 billion budget, the New Doha International
Airport is expanding to more than double its current passenger Abu Dhabi International Airport will add a new terminal and international airport that will have a price tag of nearly a billion Airport will replace the existing airport in 2010. The hub will
capacity. In addition, the emirate is also spending US $10 billion runway, state-of-the-art air traffic control tower and expansive dollars. The plan will concentrate on expanding the terminal have a 4.2 km runway and a 4.8 km runway – one of the longest
on Al Maktoum International, which will become the world’s cargo facility. The new Midfield Terminal Complex will include capacity to meet the country’s air transportation requirements in the world – designed to accommodate the A380. Built over
largest airport with the capacity to serve up to 120 million additional immigration and handling facilities, and provide for the next two decades. The airport’s existing terminal has 22 sq km, half of which is reclaimed land, the airport will
passengers per year. It will feature six parallel runways, 4.5 km in thousands of square meters of extra retail space, which will been handling more than seven million passengers a year feature some 40 contact gates, 22 remote gates, 62 parking
length, each separated by a distance of 800 m. The airport will also exclusively offer premium brands unavailable in other duty at an average annual passenger growth rate of 9% positions, a 750,000 ton-per-year cargo facility, a cargo aircraft
have three passenger terminals: one dedicated to airlines of the free outlets in the region. Collectively, the current development and an average annual cargo growth rate of 7%. maintenance center and various other maintenance centers.
Emirates Group, the second to other carriers and the third efforts will double the existing airport land area and raise the
to low-cost carriers. Sixteen cargo terminals with a combined airport’s annual passenger capacity to 20-40 million passengers
12-million-ton capacity will also be constructed. by 2010, with further expansion initiatives to follow thereafter.

25 26


LUXURY URbAn cOnDOS
GLObAL SAmPLE

NAME NAME

DUBAI PEARL K RESIDENCE MANDARIN ORIENTAL THE LANDMARK LIVING SHANGRI-LA LUMIÈRE RESIDENCES W NY DOWNTOWN

DEVELOPER DEVELOPER

Pearl Dubai FZ LLC / KL Landmark Sdn Bhd Palladian Development Chalegrove Properties Peterson Investment Group / Frasers Property Group The Moinian Group
Al Fahim Group Westbank Projects Corp.
LOCATION LOCATION

Dubai, UAE Kuala Lumpur, Malaysia Chicago, USA London, England Vancouver, Canada Sydney, Australia New York, USA
ARCHITECT ARCHITECT

Schweger Association Architects dcmstudios Solomon Cordwell Buenz Squire and Partners James K.M. Cheng Architects Inc. Foster + Partners Gwathmey Siegel & Associates

LIVING SHANGRI-LA
YEAR COMPLETED YEAR COMPLETED

2010 2009 2009 West Tower: 2006 / East Tower: 2010 2008 2008 2009
FLOORS FLOORS

67 in each of four towers 50 74 West Tower: 31 / East Tower: 45 61 56 57
UNITS UNITS

2,000 180 150 662 227 456 223
BUILDING AMENITIES BUILDING AMENITIES
DUBAI PEARL
spa & gym, wellness clinic, private spa & fitness center, children’s pool spa & gym, 24-hour room service, landscaped piazza, restaurants & spa & fitness center, juice bar, glass atrium lobby w/glass- bottom spa & fitness center, roof terrace
lobbies, viewing decks, water & playground, bar, café & lounge, full-service pet spa, five-star boutiques, high-speed elevator, specialty grocery store, exhibition pool above, Club Lumière Spa, w/cabanas, rooftop lounge & café,
features on each floor, performing library & business center, restaurant, childcare services, underground secure car parking, space curated by Vancouver Art multi-purpose event room, landscaped plaza, luxury hotel on
arts theater, jogging track, high-end mini-market, clubhouse, tailoring, personal shopping fitness center, environmentally friendly Gallery, library & game room, underground car park, movie lower floors, media screening room
shopping mall, six luxury hotels, link barbecue area, screening room, biomass heating system, boutiques limousine service, media screening screening room
to public transport butler service room, LEED Silver certification
UNIT DETAILS UNIT DETAILS

rainfall showerhead, oval-shaped jet city center & mountain views, 14-ft ceilings, full-length windows, floor-to-ceiling windows, balcony, Coal Harbour, English Bay & Stanley kitchens & bathrooms designed by customizable interiors, optional Graft
baths, luxury countertops & floors, balcony, built-in wardrobes, interior Miele dishwasher, Sub-Zero built-in double wardrobes, Siemens Park views, kitchen appliances Foster, laundry room, full-height furniture, concealed flat-screen TV,
designer cabinetry design & lifestyle options from refrigerator, Wolf cooktop, acoustical kitchen appliances, Villeroy & Boch by Boffi & Miele, Kallista cast-iron doors, tinted windows, color kitchen appliances by Miele and Asko,
Christian Liagre, Yasumichi Morita, treatment between floors & bathroom fixtures, oversized showers, bathtub, bathroom fixtures by A/V intercom, home automation bathroom fixtures by Dornbract, Grohe,
Minotti, Bulthaup, Gaggenau demising walls underfloor comfort heating Hansgrohe Axor & Philippe Starck systems Jeeves and Duravit
and ULTI

STARTING PRICE (USD) STARTING PRICE (USD)
THE LANDMARK
$2,573,000 $1,792,200 $3,357,000 $1,476,000 $2,573,000 $993,000 $1,476,000

PRICE PER SQ FT (USD) PRICE PER SQ FT (USD)

$900 $586 $1,536 $1,638 $900 $972 $1,638
KEY MESSAGING KEY MESSAGING

“24-hour living city” “Style has a new address” “Prepare to be delighted” “Own property in the heart of the “The best of cosmopolitan West “There can be no other choice: “Own it”
world’s fastest-growing financial Coast living” welcome to Lumière Residences”
district”

27 28


LUXURY GOLF viLLAS
GLObAL SAmPLE

NAME NAME

JUMEIRAH GOLF ESTATES PUNTA MITA TRUMP INTERNATIONAL GOLF TUCKER’S POINT CLUB TEMENOS ANGUILLA THE TIGER WOODS MISSION HILLS GOLF CLUB
CLUB & RESIDENCES
DEVELOPER DEVELOPER
Leisurecorp Cantiles de Mita, S.A. de C.V. The Trump Organization / Castle Harbour Ltd. Flag Luxury Properties Tatweer Mission Hills Group
Empresas Diaz Inc.

LOCATION LOCATION

Dubai, UAE Punta Mita, Mexico North Coast, Puerto Rico Tucker’s Town, Bermuda British West Indies, Anguilla Dubai, UAE Guanlan, China

COURSE DESIGNER COURSE DESIGNER
Greg Norman, Vijay Singh, Jack Nicklaus Tom Kite Roger Rulewich Greg Norman Tiger Woods *Please see below JUMEIRAH GOLF ESTATES
Pete Dye, Sergio Garcia
COURSES COURSES

4 2 2 1 1 1 12
YEAR COMPLETED YEAR COMPLETED

Phase A: 2009 Phases I–IV: 2006 Phase I: 2008 2008 2008 2009 2005
Phase V: 2008 Full Completion: 2010 THE TIGER WOODS

VILLAS VILLAS
900+ 60+ 500 14 37 100 1200+
BEDROOMS BEDROOMS

2–6 4 2–3 2–4 3 custom up to 12
COMMUNITY AMENITIES COMMUNITY AMENITIES

tennis facilities, 9.5 miles of beach, clubhouse, restaurant & lounge, 1,000 tennis center, clubhouse, spa & golf academy, clubhouse, atrium, spa, kids' club, gym, hotels, TUCKER’S POINT CLUB
golf & tennis academies, clubhouses, golf & tennis club, sailing & catamaran
jogging & cycling tracks, fitness & spa spa & fitness center, laundry & dry acres of oceanfront, Trump Tranquility Spa, fitness center, beach & sailing club, tours, hiking & bike trails, horseback luxury boutique hotel, spa & fitness dining options, banquet hall, clubhouse,
center, parks & lakes, GPS tracking cleaning, pet care, multiple dining 10-acre beach club w/spa & fitness center, water sport center, pre-arrival grocery riding, water sports center, 4,400 ft of center, gourmet dining (including six driving ranges, tennis, country club
systems, restaurants, retail galleries, options, pre-arrival grocery shopping nursery & kids club, tennis facilities, shopping, luxury hotel & resort, beach, fitness center, St. Regis Resort, Gus Savoy signature restaurant),
post offices, organic market, hotels, Trump Founder Club (includes use of restaurants Remòde spa, David Bouley restaurant, retail boutiques, beauty salon
metro access a private jet, helicopter & limousine) kids & junior club, car rental

VILLA DETAILS VILLA DETAILS

furnishings by Poggenpohl, B&B Italia, courtyard entry w/water fountain, hurricane-resistant windows & doors, 500 sq ft veranda, private pool, Mediterranean architecture, white landscaped gardens, pools, private gardens, pool, arches,
Miele and Bang & Olufsen, courtyard heated infinity plunge pool w/ Venetian electronic concierge, Sub-Zero oversized showers & whirlpool tubs, stucco exteriors, landscaped garden, smart home technology, in-home columns, balconies, home theater,
& pool, landscaped gardens, double tile, terraces w/ocean views, exposed appliances, wine cooler, 10-ft oversized garages to courtyard ringed w/palms, infinity pool, security linked directly to community private elevator
garage, maid’s room, fireplaces, hardwood beams, floor-to-ceiling ceilings & floor-to-ceiling windows accommodate golf carts Jacuzzi, floor-to-ceiling windows security center and local police,
walk-in wardrobes windows, full wet bar, Viking fire & medical services
appliances
TRUMP INTERNATIONAL GOLF
STARTING PRICE* (USD) STARTING PRICE* (USD) CLUB & RESIDENCES

$2,700,000 $3,600,000 $1,550,000 $2,500,000 $1,400,000 $17,700,000 $917,000
PRICE PER SQ FT* (USD) PRICE PER SQ FT* (USD)
*Jack nicklaus, greg norman,
$450 $498 $528 $1,351 $467 $1,473 $258 (original)
annika sorenstam, ernie els,
KEY MESSAGING KEY MESSAGING vijay singh, nick faldo, Jose
“Come home to a legend” “Live the dream” “Discover the luxury of Trump and the “The Bermuda of your “An oasis of tranquility and the “A golfing community that “216 holes, world’s #1” maria olazabal, David Duval,
beauty of the ‘enchanted island’” dreams awaits you” promise of exclusive luxury” perfectly embodies the style and Jumbo ozaki, David Leadbetter,
status of our namesake” Pete Dye, Zhang Lianwei
*Pricing comprises off-plan and resale figures
29 30

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FutureBrand's 2008 Gulf Real Estate Study

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FutureBrand's 2008 Gulf Real Estate Study