A report from global real estate consultancy Knight Frank shows that the housing market in Qatar faces challenges, as a fall in demand for residential properties is coupled with a rise in supply following the construction boom linked to the FIFA World Cup 2022.

‘The Qatar Real Estate Market Review for Spring-Summer 2023’ showed that rents are dropping in the majority of districts, with Lusail’s Waterfront and Fox Hills districts experiencing the highest quarterly depreciation of 23% and 18% respectively.

The municipalities of the capital Doha and Al Rayyan recorded the highest volume of residential transactions during the second quarter, it added.

Faisal Durrani, Partner, the Head of Research, Middle East and North Africa, Knight Frank said, “The supply-demand imbalance, rising interest rates, and affordability challenges are contributing to a shrinking mortgage market and impacting the volume of home sales, while also undermining residential values. Indeed, the total number of residential sales transactions has fallen by 36% over the last 12-months. Simultaneously, the total value of residential transactions has declined by 24%.”

Durrani pointed out that the sharp decline in rents would undoubtedly put landlords under pressure to remain competitive, particularly as the Knight Frank’s 2023 Destination Qatar report shows that Qatari high net worth individuals most prefer Lusail for a residential acquisition, with an average budget of $1.8mn.

“Among the HNWI we spoke to, 71% already own a home in Lusail. Additionally, Lusail Marina and Lusail Waterfront were identified as the two most favoured locations for residential real estate acquisition. Moving on to rental yields, during Q2 2023, the gross single-let rental yield for residential properties in Qatar averaged 6%. Apartments had a higher yield of 6.4%, while villas yielded slightly lower at 4%,” he added.

On its office market, Knight Frank said there were challenges in this sector too, which is experiencing a widespread drop in average rental rates.

Adam Stewart, the Partner and Head of Qatar, Knight Frank explained, “Despite strong demand from the public sector and oil and gas industries, the Qatari office market’s biggest challenge is an oversupply of office space, which is undermining rents, leaving occupiers firmly in the driving seat. Notably, the public sector is driving most of the activity in Qatar, particularly in Lusail.”

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Source: ME Construction News

Oman property developer Alargan is set to break ground this month on a new low-water bridge – technically known as an ‘Irish’ bridge – within its Telal Al Qurm development in Muscat.

Telal Al Qurm is a signature project by Alargan, providing a lifestyle-themed community in the heart of the city. The mixed-use development includes over 1,500 apartments and 46 townhouses, as well as 190 serviced apartments. The picturesque setting is complemented by two four-star hotels with a total of 370 keys, an aqua park, cinema complex and commercial spaces.

Breaking ground on August 20, the four-month ‘transformative’ Irish bridge project will adhere to the strict Oman Highway Design Standards 2017.

The approval was granted following a comprehensive hydrology study, which will ensure structural stability and efficient water flow during rainy seasons and all year round. The implementation of meticulous drainage measures will further optimise surface water drainage.

Alargan has gone beyond the development’s land boundary, showcasing its dedication to community development by solely funding the Irish bridge connection in the public domain.

The bridge, measuring 4x4m with 27 cells, will play a pivotal role in establishing an uninterrupted connection to Telal Al Qurm throughout the year, ensuring the safety and security of the residents in the new development as well as the neighbourhood and the general population.

Commenting on the milestone, Engineer Maher Joujou, Acting General Manager of Telal Al Qurm, said: “At Alargan, we consistently strive to enhance the living experience for our valued residents and investors. Safety remains a paramount concern, making it a top priority throughout the bridge’s development. The approval of the Irish bridge reflects our unwavering commitment to creating thriving communities with top-tier infrastructure and safety.”

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Source: ME Construction News

The Big Project Middle East (BPME) editorial team has announced a comprehensive revamp of its highly anticipated annual awards. The Big Project ME Awards 2023: Excellence in Construction Awards (BPME Awards) has been significantly expanded to place greater focus on construction professionals and teams, contracting companies, regional developers, a diverse array of projects, and sustainability achievements.

Scheduled to take place in Dubai on 18 January 2024, the BPME Awards now has several distinct groups of categories: Individual Awards (five awards); Sustainability Awards (four awards); Developer Awards (four awards); Contractor Awards (seven awards); Project Awards (11 awards).

For the first time in its over decade long history, the event will recognise developers from small- (project development values up to US $30mn) to giga-sized (projects exceeding $1bn in value) with individual categories. The team has also applied this distinction to the contractor awards, expanding the previous overall contractor category into three: small (turnover up to $25mn); mid-sized ($25mn to $900mn) and large (over $1bn in turnover). These categories are joined by specialist contractor categories such as MEP, infrastructure etc.

In addition, the project categories have been significantly expanded and now include: Project of the Year: 3D Printed; Project of the Year: Offsite Construction; Project of the Year: Fit-Out; Project of the Year: MEP; Project of the Year: Refurbishment & Retrofit; Project of the Year: Energy; Project of the Year: Water; Project of the Year: Infrastructure & Transport; Project of the Year: Leisure & Hospitality; Project of the Year: Commercial, and Project of the Year: Residential. Read more about the categories by clicking here.

“The BPME Awards has credibly recognised excellence in construction across the Middle East for well over a decade, and the time was right to relaunch the event with a significantly expanded focus, given how much the construction sector has grown in recent years. With the Big Project ME Awards 2023: Excellence in Construction Awards, we will now recognise excellence across 31 distinctive categories, which we think best represents the regional construction sector and what it is striving to achieve,” said Jason Saundalkar, Head of Content at Big Project Middle East.

Nominations for the BPME Awards are now open, and will close on 15 November 2023, with no possibility of extension. Read the nomination guidelines here.

As before, there is no cost to submit a nomination for the awards, however should you be shortlisted in a category, a member of the BPME commercial team will get in touch to discuss table costs for the gala dinner event on 18 January 2024, the editorial team confirmed. Sponsorship inquires can be addressed to Raz Islam (raz.islam@cpitrademedia.com) and Madeleine Martin (madeleine.martin@cpitrademedia.com).

To read more about the Big Project ME Awards 2023, click here.

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Source: ME Construction News

Saudi Arabia’s National Water Company (NWC) said it has awarded a Long-Term Operation and Maintenance (LTOM) contract worth over US $426mn to Alkhorayef Water and Power Technologies Company for the rehabilitation, operation and maintenance of sewage treatment plants (STPs) in Riyadh.

The 15-year-long deal will contribute to the objectives of the National Water Strategy, which is mainly aimed at achieving environmental sustainability, increasing investments in the water sector and opening up partnership opportunities for the private sector.

This is executed under an innovative agreements model that aims at engaging the private sector in investment opportunities involving the rehabilitation, operation and maintenance of NWC strategic assets.

The contract was signed by Engineer Nemer Mohammed Alshebl, the Chief Executive of NWC and CEO of Alkhorayef Water and Power Technologies Company, in the presence of Engineer Abdulrahman Abdulmohsen AlFadley, Minister of Environment, Water and Agriculture and Chairman of NWC.

Nemer Mohammed Alshebl said the contract signed with Alkhorayef is for a levelised tariff of about $11cu/m. The contract aims to cover the rehabilitation, operation, and maintenance of three STPs in Riyadh (Manfouha STPs complex) with a total treatment capacity of 700,000cu/m per day.

As part of the contract, AWPT will invest over $146.6mn in rehabilitation works, which will improve overall operational performance and environmental compliance. It is also the third LTOM contract being awarded by NWC in a bid to revamp the existing STPs.

This, however, is just the beginning of an extensive works and allocations campaign, as Nemer Mohammed Alshebi explained: “In addition, the NWC LTOM programme will continue, as NWC intends to tender 113 existing treatment plants with a total capacity of 2.4m cu/m per day starting in 2024.”

These contracts are investment opportunities open for local and international companies. The partnerships will attract important consortia, with the goal of rehabilitating existing assets for 15 years with capital investments at competitive prices.

Through these contracts, NWC aims to support the national economy by enabling expansion and growth in the water sector and creating opportunities and long-term partnerships with local and international private sector companies.

Another goal is to attract and localise new technologies and transfer knowledge to Saudi professionals, as well as attracting capital into Saudi Arabia. Hence, they are all offered as part of an innovative partnership model that interests water sector players locally and globally, the statement concluded.

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Source: ME Construction News

RAK Properties has recorded solid growth for the first half of the year with a 164% jump in its revenue, hitting $140mn, primarily propelled by robust demand for new project launches in both Abu Dhabi and Ras Al Khaimah. This is also combined with the successful handover of completed residential projects.

Announcing its financial results for the six-month period ended 30th June, 2023, RAK Properties said its net profit surged more than three-fold to hit $24.01mn from $6.96mn last year. Additionally, the company’s hospitality assets played a crucial role in enhancing revenue streams, fortifying the balance sheet, and elevating Mina Al Arab’s allure as a premier lifestyle destination in Ras Al Khaimah.

During the first half, RAK Properties said it had seen intensified demand for its projects in both Abu Dhabi and Ras Al Khaimah, underscoring the strong market interest in the company’s offerings.

For example, all the units that had been released at the Julphar Residence apartment building on Reem Island, Abu Dhabi, were sold out; and over 75% of sold units have been handed over, with the ongoing handover process continuing for the remainder.

According to RAK Properties, the beachfront residential buildings are experiencing strong demand, as demonstrated at Bay Residences, located on Hayat Island, Mina Al Arab. At Bay Residences Phase 1 all units are sold out and both towers are under construction, with development on track according to the plan, the developer said.

Meanwhile, Bay Residences Phase 2, comprising 324 apartments, proved hugely popular when sales were launched in Q1 2023, with all units fully sold out by H1 2023. Construction has commenced and is progressing as per the set timeline.

On the solid performance, CEO Sameh Al Muhtadi said: “These remarkable results mark the onset of an exciting phase of growth, fuelled by our re-imagined development pipeline and designs. We are witnessing enthusiastic demand from both local end-users and international investors driving our sales across the board. Looking ahead, we have an exhilarating period in store, with multiple launches to be announced in the coming months. Our primary focus remains on driving transformational projects within existing locations across Ras Al Khaimah, where we have further developments planned that align with our dedications to RAK’s Vision 2030. As we steadfastly pursue growth opportunities, we are committed to investing in strategic acquisitions and maintaining a robust liquidity position to support our long-term growth strategy.”

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Source: ME Construction News

Sharjah-based developer Arada has awarded a $108mn contract to Gulf Asia Contracting Company (GAC) for the construction of the Nasaq District, a cluster of six upscale apartment buildings located within its large mixed-use community, Aljada.

Nasaq District will boast 649 homes ranging from one- to three-bedroom apartments – all featuring contemporary architecture – while each block offers residents direct access to Aljada’s tree-lined East Boulevard with its wide variety of shopping and dining experiences. There is also an urban linear park, which includes extensive sporting facilities.

A Dubai-based contractor with extensive civil and industrial construction experience, GAC is already working elsewhere at the Aljada site, after winning a $129mn contract to build the Vida Aljada hotel complex in January.

Construction is set to begin soon on the Nasaq Distict and the entire work schedule is slated to be complete within two years.

Arada Group CEO, Ahmed Alkhoshaibi commented: “We’re determined to keep up the pace of work at Aljada, where 3,200 homes are now under construction, and look forward to working with our partner GAC to bring this vibrant new district to life. Elsewhere on the Aljada jobsite, our teams are now closing in on the completion of the second phase of Madar, the popular family entertainment district, and we look forward to opening new and exciting attractions to the public within the coming months.”

Spread over a 24m sqft, Aljada is Sharjah’s largest-ever project and a transformational destination for the emirate. Aljada contains numerous residential districts, as well as extensive retail, hospitality, entertainment, sporting, educational, healthcare components and a business park, all set within a green urban master plan.

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Source: ME Construction News

The Middle East is leading the charge in driving growth and adoption of the WELL Building Standard (WELL) globally, with a 24-fold increase in adoption over the last 19 months, a feat recently confirmed by the International WELL Building Institute (IWBI). As the global authority for driving market transformation toward healthy buildings, organisations and communities, IWBI is the leading force behind the WELL movement.

According to IWBI, WELL has been adopted throughout the Middle East by projects in sectors ranging from regional public sector, educational and governmental entities to real estate developers, financial institutions and management companies.

To date, more than 500m sqft of real estate  projects are enrolled in WELL programmes across 16 countries, including UAE, Afghanistan, Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Saudi Arabia, Syria, Turkey and Yemen – representing a doubling in the number of countries represented.

“Ever since the WELL Standard first took hold in the Middle East, we have seen incredible increases in demand year-over-year for WELL’s evidence-based strategies that support the physical and mental health of organisations’ most valuable asset – people. The commitments made by companies and public sector organisations across the region to prioritise the health, safety and well-being of their people is an inspiration to us all and demonstrates outstanding leadership, while proving that investments in health strategies can spark enhanced performance and increased financial returns,” said IWBI Founder Paul Scialla.

A WELL Core award sits on display on the 17th floor of the FMC Tower at Cira Centre South in Philadelphia, Pa. on February 17, 2021. The building has a WELL “healthy” building certification, which rates buildings on air, water, light, movement, thermal comfort, sounds, and materials.

The recent uptake in the Middle East has contributed to overall WELL adoption, which now stands at more than 42,000 projects, encompassing nearly 4.8b sqft of real estate in 127 countries.

In particular, the WELL Health-Safety Rating, a framework for driving resilience into the centre of business policies and operational plans through facility operations and management, has sparked considerable demand across the region – a demand being led by the UAE. For example, in a public sector-leading push, the UAE Prime Minister’s Office has achieved the WELL Health-Safety Rating for its Dubai office, according to IWBI.

This follows the office’s achievement of WELL Certification at the Platinum level, the first in the region to be certified through IWBI’s WELL v2 pilot and the first WELL Certified government ministry office in the world.

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Source: ME Construction News

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