For the British company The First Group, which has been operating on the international market for more than 20 years and has rightfully earned itself the title of leader in the premium segment, 2012 was truly a landmark. In Dubai, the developer opened two hotel-type apartment complexes in the prestigious TECOM area - Metro Central and First Central, and also began construction of a new project in the Dubai Marina area - TFG Marina Hotel. We met again with Rob Burns, chief executive officer of The First Group, who told us in detail about the trends in the real estate market in the United Arab Emirates, as well as the successes and achievements of the company.
Rob, the effects of the global financial crisis are less felt in Dubai. Many experts argue that the market is once again entering the stage of recovery, as evidenced by real estate prices, which persistently creep up. Please tell us what changes have occurred in the industry over the past year, and what is the picture of today from a professional point of view?
First of all, I would like to congratulate all readers of Russian Emirates on the upcoming 2013 and wish them success and prosperity in the new year. I must say that 2012 was extremely successful for all the Emirates and Dubai in particular - mainly due to the excellent performance of the hotel and tourism sectors, as well as the emirate's real estate market.
According to recently published data, the economy of the United Arab Emirates is developing at an accelerated pace: trade in the first quarter of 2012 grew by 6.7% compared to the same period last year. The Federal Customs Administration published data according to which the volume of imports amounted to 219.9 billion dirhams (US $ 59.9 billion), and the volume of exports and re-exports amounted to 38 billion (US $ 10.3 billion) and 88.3 billion dirhams (US $ 25.1 billion), respectively. Such indicators make it perfectly clear why the Emirates were recognized as the second country in the Middle East with the best conditions for organizing their own business.
Regarding the Dubai real estate market, recent studies have shown how much this sector has grown in the emirate over the past year. According to the Dubai Land Department, the total amount of real estate transactions in the first nine months of 2012 amounted to a record 83 billion dirhams (US $ 22.6 billion). Investors again reached out to the emirate, triggering an increase in the popularity of housing in prestigious areas such as Dubai Marina. One of the apartments in an elite residential complex in the area, where our new TFG Marina Hotel will be built soon, was sold for 34.7 million dirhams (US $ 9.4 million). The apartment is 1355 square meters. m in a skyscraper Le Reve was acquired by an investor from Russia, who paid four times the starting price. Real estate agency Cluttons and consulting company Jones Lang Lasalle also noted an increase in prices for residential real estate in Dubai: the cost of apartments in the first quarter of 2012 increased by 5%.
Why, from your point of view, is Dubai becoming more attractive for real estate investors and tourists?
More recently, new visa regulations have been adopted to enter the United Arab Emirates. Now, property owners and their families, as well as businessmen who do business with Emirate companies, can receive multiple-entry visas for up to 6 months, which will allow them to stay in the country for up to 30 days at a time. Tourist visas were also extended to three months, and the period of permanent residence - up to 14 days. Thus, the metropolis that never sleeps has become even closer and more accessible for residents of many countries of the world, including Russians.
People are attracted here by the prosperity and well-being of the state, its political stability. The latest World Bank rating showed that the United Arab Emirates rose from 33rd to 26th place in the ranking of countries favorable for doing business in 2013.
The UAE has become one of three countries in the Middle East and North Africa that have been able to improve their position. The country also became the second Arab state in the simplicity of opening its own business, letting Saudi Arabia forward. Given the unstable political situation in several regions of the world and the manifestations of economic stagnation in Western Europe, people began to think more often about changing their place of residence and buying apartments by the sea, or rather, on the shores of the Persian Gulf. And this cannot but please us.
You, of course, follow the construction sites in Dubai. Which ones do you recommend paying attention to today?
Dubai Sports City will always remain a special area for our company, where our first facilities were built: The Matrix, The Spirit, The Bridge and The Diamond. Thanks to its well-developed infrastructure, Dubai Sports City has quickly turned into a sports center of international importance, where international competitions are held - from cricket and golf to football and tennis.
The international cricket stadium has helped Dubai Sports City become a significant venue for the global sports community. It also houses the head office of the International Cricket Council and the Sports Academy, which trains young players.
Not far from the stadium is Ernie Els Golf Club with a modern club locker room and an 18-hole field designed by the legendary South African player Ernie Els.
A new football academy has also opened in Dubai Sports City, where children of different ages and with different levels of training can study. The complex has two football fields. This is one of the multi-functional sports facilities, which proves that Dubai is able to host any event during the hot summer months, from concerts to football matches.
Let’s talk now about the First Group’s own successes - in Dubai and in the international arena.
Over the past year, our market presence has grown at a phenomenal pace: we were able to open promotional stands in many cities around the world, including Dubai, the cities of Nigeria (including Abujda) and Moscow.
In December, we opened two more points in Dubai: in the luxury hotel Rixos, The Palm on the man-made island The Palm Jumeirah, as well as in the Metro Central complex in the TECOM area. This complex of hotel-type apartments is very popular and is currently 100% populated! Thanks to its convenient location near the metro station, Metro Central has quickly turned into a convenient place to stay for tourists and business people.
Please tell us about the development of affiliate programs. What is new? Surely it will be interesting to investors.
We are proud to conclude a partnership agreement with one of the largest international airlines Etihad Airways, which operates more than 1300 flights a week in 85 destinations and every day helps thousands of passengers discover something new in different parts of the world, guaranteeing safety and comfort in flight. Our partnership gives another privilege to our customers: those who purchase property from The First Group automatically become a member of an exclusive club and receive a unique Etihad Guest Gold Card, which offers a lot of advantages: a pass to VIP waiting rooms, priority check-in and boarding , permission to carry extra baggage and much more. We are confident that this union will bring many positive aspects to both us and all our investors.
I cannot but ask about the landmark project of the company - the TFG Marina Hotel, which we have talked about more than once from the pages of our magazine. What stage is the construction today? What is going on at the construction site?
At present, laying and retaining soil works have been completed. Pile foundation stress testing is underway. The main contractor of the project, appointed in December, took over the control and management of the construction process of the building itself and began active construction work. In addition, the asset management department is working to ensure that the unique TFG Marina Hotel project becomes a worthy addition to the portfolio of one of the world's largest hotel brands. At this stage, we are at the final stage of negotiations and will proudly announce the name of the hotel brand in the near future.
You know how proud we are of our special position in the real estate market, offering our clients innovative approaches to investments in the most popular places in the world, as well as convenience and comfort when managing real estate.
For all readers, I would like to remind you that investing in the TFG Marina Hotel project is not only an opportunity to acquire real estate in one of the most amazing corners of the world, but also materialize for yourself the success potential of the hotel market in one of the most popular cities in the world. Dubai, tax-free in 2012, attracted about 9 million tourists, and the average hotel occupancy rate was 85%. In terms of the latest indicator, Dubai was ahead of Hong Kong, London, Paris and New York.
You will not find a better time to invest in hotel real estate in Dubai than now. Believe me, this sector will continue to grow at a significant pace, attracting more and more competent investors.
Rob, thanks for the conversation and good luck to you.
Thank. Follow the news of the first The First Group team.
