Despite investment activity being dampened by the global pandemic, MENA investors continue to drive investment into UK’s hospitality sector, transacting on over GBP 1.25 billion of central London trophy hotel assets in 2020, according to real estate advisor Savills.

MENA INVESTORS DRIVE UK HOSPITALITY TRANSACTIONS

Driven by investors from Qatar and Israel, the overall UK transaction volumes reached GBP 2.3 billion in 2020, a decrease in 2019 volumes and the ten-year average, with key 2020 deals including the sales of The Ritz, Grosvenor House Suites and Sanderson & St Martins Lane hotels.

Historically, the UK hospitality market represented a safe haven for MENA investors, however with the economic disruption, travel restrictions, and temporary hotel closures, investment was curtailed. However, Qatari, Israeli, US, Singaporean, Thai and European investors accounted for 63% of total UK hotel investment.

Earlier last year, just before countries across the world entered a lockdown, Qatari investor purchased the iconic London Ritz for a reported GBP 800 million. London’s hospitality market remains a bright spot for MENA investors. Qatar Investment Authority already owns Harrods and Canary Wharf, while Qatari Diar owns London’s Olympic village.

UK HOSPITALITY OUTLOOK

Although, despite the short-term volatility in the hospitality sector, real estate advisory Knight Frank, maintains that the long-term fundamentals remain strong for the UK’s hotel sector.

“Similar to previous downturns, the UK hotel industry will adapt and survive. Not being a homogeneous sector and diversifying through investment in a varied portfolio is only set to increase in a post pandemic world. From the price-point and strong brand recognition of the budget sector, to the proven resilience of the serviced apartment sector, wide variation exists.

Furthermore, with the pandemic driving a flight to quality, leveraging well-established branding and future proofing hotels in strategic locations, can offer unique upside potential for investors,” says the advisory, following its Knight Frank’s Hotel Transaction Trends 2021,

Savills are equally optimistic; the advisory maintains that the UK continues to be attractive despite the economic downturn brought on by the pandemic.

“On the whole, UK real estate continues to be an attractive investment asset class given the relatively weak strength of the pound against other currencies, coupled with the widening spread between Gilts and equivalent yields,” said Rob Stapleton, Director, Savills Hotel Capital Markets in a recent blog post on the advisory’s website.

Fast-tracked by the pandemic, and likely to shape the real estate recovery in 2021, sustainability and tech adoption are two critical themes that will help drive the industry forward this year says JLL.

“While uncertainty will persist in the New Year and the recovery will vary across sectors and industries, accelerating digital capabilities and focusing on sustainable performance can redefine business success,” said Dana Salbak, Head of Research MENA at JLL.

Despite the year bringing setbacks because of the pandemic, the UAE continued to pave the way through a strategic overhaul of measures to promote business readiness and changes to social and personal legislation to promote citizens' and residents' welfare.

This was supported by the continued commitment to social development, including welfare, health and education, as outlined in the 2021 federal budget (AED 58.3 billion), according to JLL’s 2020 Year in Review report released today.

Although there was a slowdown in performance at the beginning of the year in the UAE, the second half saw a revival of activity as lockdown measures eased and pent-up demand filtered through the residential market in both Abu Dhabi and Dubai.

“While we are yet to claim we are out of the woods confidently, the UAE has once again proven its resilience, growth, competitiveness and liveability,” said Salbak.

OFFICE

Both office markets remain tenant-friendly as landlords continue to offer incentives and attractive lease terms. In some instances, tenants have expressed interest in relocating to quality space, particularly in Dubai, resulting in greater polarization across the market.

RESIDENTIAL

After various lockdown measures put construction activity on hold in the first half of the year, H2 2020 saw a rapid recovery in residential project handovers, with 39,000 and 4,000 units added to the market over the period in Dubai and Abu Dhabi, respectively.

RETAIL

With lockdown measures now eased across the country, pent-up demand has - and is expected - to drive sales further across retail centres.

In Dubai, 761,000 sq m is expected to handover in 2021, the majority of which are super-regional developments that have been previously delayed. Similarly, in Abu Dhabi, super-regional malls also form a majority of the 293,000 sq m expected to be delivered this year.

HOSPITALITY

Meanwhile, opportunities for the hotel market to recover from the pandemic include the introduction of co-working spaces, particularly in the small-to-mid scale hotels. As large corporate occupiers increase their demand for co-working spaces, hotels have the opportunity to redesign underutilized spaces including the conversion of meeting and event space.

Saudi Arabia’s crown prince unveiled plans to build a zero-carbon city at NEOM, the first major construction project for the USD 500 billion flagship business zone aimed at diversifying the economy of the world’s largest oil exporter.

The city, known as Neom city ‘The Line’, would extend over 170 km and be able to house a million people in carbon-positive urban developments powered by 100% clean energy.

Plans for the city include no cars or streets and ‘zero carbon emissions’, according to a televised appearance by Prince Mohammed.

The Line will fulfill the daily requirements within a five-minute walk and the city can be traveled end-to-end in 20 minutes.

“We need to transform the concept of a conventional city into that of a futuristic one,” Prince Mohammed said.

The neom city will be 100% powered by renewable energy and the cost of infrastructure would be 30% cheaper compared to more traditional cities.

Overseen by the Public Investment Fund, Neom city is the flagship project of Saudi Arabia's post-oil diversification plan known as Vision 2030 that seeks to reduce the country's reliance on hydrocarbons. The bulk of construction will take place over the next decade, with a target of hosting one million residents by 2030.

Saudi Arabia’s The Line is part of the government’s slew of giga projects and aims to create 380,000 jobs and add $48bn a year the kingdom's GDP.

 

While solar has traditionally been viewed through an environmental lens, it has become increasingly economically critical and essential for the long-term value of a property.

This is according to Canadian custom home builder, Deimira Paa Baidoo, who argues for the prioritisation of solar power as both an economic and environmental necessity for new homebuyers.

Deimira Baidoo is a sustainable home builder, who focuses on creating homes that are both built with sustainable materials and of low impact on the environment.

“Solar is traditionally viewed solely through an environmental lens, but it is increasingly becoming economically critical, both for the current costs of home ownership and for the long-term value of the property,” he says.

Baidoo makes the case for the necessity of prioritising the installation of solar panels, not only because of issues around sustainability but also because of the benefits it lends to the economy; monthly costs of solar panels are seen as a cost savings over other forms of electricity that tend to be far more expensive.

In addition, Baidoo argues that home values of properties without solar will decrease at a faster rate than properties that already have existing solar systems.

Governments across the world are looking at how solar will shape their green agenda and the property market. For example, the UAE will invest AED 600 billion until 2050 to meet the growing energy demand and ensure the sustainable growth of economy.

The Dubai Clean Energy Strategy 2050, which was launched by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, aims to provide 7% of Dubai’s total power output from clean energy by 2020. Plans are in place to increase it to 25% by 2030 and 75% by 2050. From initiatives to the Mohammad bin Rashid Al Maktoum Solar Park, which is the largest single-site solar power project in the world, to the UAE being committed to reducing its global solar power costs, the UAE’s agenda to promote clean energy is among its top priorities for 2021.

_{Photo Credit: Vivint Solar on Unsplash}

As travel begins to make a gradual comeback, a common trend amongst those who have resumed travel is vacations that incorporate authentic experiences respective and reflective of the natural environment. Situated by the lush Riviera Maya jungle, Hotel Xcaret Mexico invites travelers to reconnect with nature through its unique, eco-integrating architecture, combining natural elements with an unparalleled aesthetic. 

Equal parts style and substance, the eco-driven property features 900 spacious suites, multiple swimming pools, world-class spa, and 12 distinct dining destinations, including Ha’ Restaurant led by Michelin star Chef Carlos Gaytán, an adults-only restaurant with its own surcharge. Additionally, thanks to its All-Fun Inclusive® concept, guests to Hotel Xcaret Mexico have access to Grupo Xcaret’s nature parks and tours and are privy to airport transfers, concierge services, unlimited Wi-Fi, among other perks.

AN ECO-CONSCIOUS STAY

Additionally, the AAA Five-diamond resort features carefully curated architecture and decor in every corner of the property, aimed at greeting guests with an eco-paradise ideal for feeling harmonic with nature. Below are some ways guests at Hotel Xcaret Mexico can experience an eco-conscious stay once they’re ready to travel:

• Visit the beautiful cenotes, caves and playones incorporated throughout the property. Before entering the cenotes, guests must take part in a small ceremony where they ask the Aluxes (mischievous mythical creatures) for their blessing, offering guests a one-of-a-kind experience.
• Indulge in a treatment at the hotel’s Muluk Spa. Its extensive facilities include massage cabins nestled in stone caves of natural rock facing the river, sauna and steam rooms, hot and cold-water tubs and more. Guests staying at the property can choose from many options including the “Copal Purification” treatment, part of the spa’s many “Mayan Journey” offerings inspired in ancient techniques of the Mesoamerican natives and that use regional products such as honey and cocoa.
• Swing on Mayan inspired and made hammocks found in the balconies of every suite. Made of nylon or cotton, these carefully designed hammocks are made using wooden needles and frames, with each color representing a feeling based on Mexican folklore; while pink represents happiness, yellow represents hope.
• Stroll around Hotel Xcaret Mexico to appreciate the 120 one-of-a-kind whimsical soplones - or wind gods -  that grace the walls of the hotel, made from wood by local family artisans in Oaxaca and inspired by the region’s native huichol art. For those seeking to connect with nature through art, miniature versions are for sale at the hotel’s store.

At Hotel Xcaret Mexico, each design is strategically placed throughout the property which allows guests to connect with nature and appreciate the authentic culture of Mexico. In addition to its nature-centric offerings, Grupo Xcaret recently debuted its 360 Xafety protocol guide, which includes 1,300 actions that are being implemented to carefully disinfect the hotel, parks and tours to ensure the safety of visitors, guests, employees and collaborators. 

With the COVID-19 pandemic forcing millions of Americans to work from home, apartment renters are increasingly in need of printing services, and they're willing to pay for the convenience of having those capabilities in their communities, according to a recent survey of over 500 apartment renters.

The November 2020 survey conducted by Satisfacts, titled Working From Apartments: What Residents Say They Need, sought to gain a better understanding of renters' remote working and distance learning requirements and preferences. When asked which apartment amenities would best accommodate their current needs, 50% of respondents listed printing services - second only to faster internet options (54.5%). On an overall value scale, respondents rated faster internet service and printer/copier/scanner services almost equally. 

DRAMATIC SHIFT IN RESIDENT NEEDS AND PRIORITIES

"It is always important for apartment operators to stay up to date on resident sentiment, but especially when we see such a dramatic shift in resident needs and priorities, as we have during the pandemic," said Lia Nichole Smith, Vice President of Education and Performance at ApartmentRatings and SatisFacts. "Residents' needs aren't the same as they were 10 months ago, especially for those who are now working or schooling from home. It's vital for operators to reach out to learn what those current needs are, and reassess what they're doing to accommodate residents."

PrintWithMe Founder and CEO Jonathan Treble said renters are leaning heavily on their apartment communities to make working and schooling from home feasible.

"We're seeing a transition in renter preferences, away from design and space and toward function and convenience," Treble said. "Apartment residents who now find themselves working or studying from home still require the equipment and capabilities that were previously provided at their workplace or educational institution. It's not surprising to see internet strength and printing capabilities top their list of necessities because those are the technologies that employees and students utilize on a regular basis."

"The survey certainly reflects what we're seeing at the property level," said LuAnne Acton Ross, Partner and Executive Vice President for JMG Realty. "Residents feel better about working from the comfort and safety of their own homes, rather than in a shared amenity space. But they still have a need for a reliable printer, scanner, and copier. We have seen a dramatic increase in our printer usage since the start of the pandemic, and with more of our residents planning to continue working from home post-pandemic, we expect that the trend is here to stay."

Property management companies are quickly realizing that a paperless business model isn't feasible for either their teams or their residents. Fortunately for operators who are thinking long term, renters are also agreeable to paying for the amenities that allow them to work or conduct coursework from home. 

The company reviews the impact of the COVID-19 pandemic in the country's property sector and predicts the evolution in 2021 that will arise excellent opportunities to buy a property in Barcelona.

Despite the Spanish economic output fall, the real estate sector in Spain is supported by a much stronger foundation than during the previous crisis of 2008. Comparing average prices to November 2014, the year of the last property turnaround, prices are up by 13.5% but are still 9% below the average figures of November 2008, the year when prices peaked prior to the last crisis.

PRICES ADJUSTMENT

Prices will undergo an important adjustment because of the drop in demand. Some forecasters are predicting that by the end of 2021 they could be 16% below their pre-COVID level in some areas. Low interest rates are likely to continue, so this should help to find great opportunities when looking for properties for sale in Barcelona.

Cash buyers and investors should be able to see a return on their investment in a not too distant future by taking advantage of the drop in prices by 2021. According to Francisco Nathurmal, the CEO of Bcn Advisors: "2021 will see a market of necessities. There will be sellers who choose to wait but there will be other ones who will need to sell, providing an opportunity for buyers and investors. The 3Ds -Death, Debt and Divorce- will trigger these sales in many cases."

BUYER'S NEW TRENDS

The current pandemic has changed different aspects of our lives and also where we want to live. We've never spent so much time in our homes, so there will be greater demand for properties in city suburbs or close to green areas. In urban locations, apartments with terraces or courtyards will be very appreciated. More spacious and comfortable properties will also be highly sought-after. The home-office will become a standard feature in properties as more people continue to work remotely. As we move into a more sustainable era, the demand for self-sufficient, modern homes will increase.

 

"We must be able to turn the current challenges into opportunities but I firmly believe that Bricks and Mortar will continue to be regarded as one of the most stable investments in an unstable environment," concludes Francisco Nathurmal.

 

San Diego has undergone major changes at the city’s downtown glistening waterfront, with the vision and leadership of the Unified Port of San Diego. The new architecture and development of the San Diego iconic waterfront have been reimagined by Tucker Sadler Architect’s CEO, Greg Mueller. The growing list of waterfront development projects by designer Greg Mueller includes the iconic Portside Pier, The Shell for The San Diego Symphony Orchestra (formerly the Bayside Performance Venue) and the Costa Vista RV Resort and Park.

Tucker Sadler Architects has been in business for over 64 years and has imparted their modern yet timeless architectural designs throughout San Diego and the region. Greg Mueller, Tucker Sadler’s Design Principal, has created visions for San Diego’s waterfront that encompass a wide range of elements, each project marrying San Diego’s history and beauty with artful designs that are unique to San Diego. 

The newly completed multi-million dollar open air waterfront design of Portside Pier includes four eateries and stunning views of the San Diego Bay on the North Embarcadero waterfront. Mr. Mueller provided architectural services from entitlement processing through completion of the development. Mueller’s design concept is a nod to the local fisherman past and present, honoring the heritage with a design that symbolizes the casting of a fisherman’s net into the water, and incorporating an abstraction of old-world fish baskets into a modern expression, anchoring each of the entrances to the four different restaurants. 

A NEW DYNAMIC TO THE ICONIC WATERFRONT AND SKYLINE

The exterior design of Portside Pier will add a new dynamic to the iconic waterfront and skyline. The buildings operable windows and doors of the new restaurant will allow the cool ocean breeze to flow through and the soft glow of fire pits and movement of the activity within to surge onto the North Embarcadero. The center arching element of building design symbolizes casting of a fisherman’s net into a wave that will capture [similar movement to capturing fish and bringing them to shore] the attention of those on the water and on the embarcadero. The restaurants are introduced by an abstraction of old world fish baskets into an elegant and modern expression that establishes the entrances to the different restaurant concepts.

Interior elements of Portside Pier will further emphasize a chic California expression of waterfront dining. At the “Topsail” deck situated above the Brigantine restaurant will provide a casual setting around fire pits and delivering magnificent views of downtown, San Diego Bay and newly completed County Park. The interior design of the Portside Pier will depict clean line ceilings that float above the dining area and the carved Teak wood walls with stained glass purposely inserted will represent modern expression of the restaurants long standing influence in San Diego.

All this at the edge of a sparkling blue bay.

Photo credit Tuckersadler.com

 

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The United Arab Emirates, Saudi Arabia and Egypt have agreed to fully restore ties with neighbouring Qatar on Tuesday.

The three countries signed an accord with Qatar in the Saudi town of Al Ula during the 41st summit of Gulf Cooperation Council leaders.

According to Bloomberg, the states were able to find a resolution and agreed to a restoration of all diplomatic ties.

Saudi Crown Prince Mohammed bin Salman said Gulf leaders needed to unify efforts to advance region.

In early January, Saudi Arabia reopened its airspace and land and sea borders to Qatar marking a key breakthrough.

From Warsaw to Rome, research by letting management platform, Mashroom compared the renting rates of 18 countries in Europe, looking at what percentage are living in a rented property.

What are the top rental hotspots in Europe?

According to Mashroom’s survey, Germany takes the lead with the highest percentage of renters which make up over half of the country’s population. The country’s homeownership rate ranks among the lowest in the developed world as the rental market is more favourable, owing to the fact that rent is not allowed to rise more than 15% over a three-year period.

Denmark came in second place due to its pro-tenant laws, while Austria rounded off the top three.

Top 10 European rental hotspots, according to Mashroom:

1. Germany - 54.3% of renters
2. Denmark - 34.4%
3. Austria - 30.2%
4. Netherlands - 26.5%
5. France - 25.3%
6. Belgium - 24.4%
7. Ireland - 24.4%
8. UK - 24.1%
9. Czechia - 23.4%
10. Poland - 15.3%

European cities with the most and least expensive rent

According to the survey, the French capital, Paris, emerged as the most expensive city to rent averaging EUR 27.80 monthly per square meter, while Oslo followed with EUR 25.30, and London in third place with EUR 20.10.

Among the least expensive rental rates was Berlin averaging EUR 7.30 monthly per square meter, followed by Vienna with EUR 9.80, and Budapest with EUR 10.50.

Most expensive rental cities (average monthly rent per sqm), according to Mashroom

1. Paris (EUR 27.80)
2. Oslo (EUR 25.30)
3. London (EUR 20.10)
4. Copenhagen (EUR 19.00)
5. Amsterdam (EUR 18.70)
6. Madrid (EUR 18.10)
7. Manchester (EUR 14.80)
8. Warsaw (EUR 14.60)
9. Rome (EUR 13.40)
10. Prague (EUR 13.40)

_{Photo Credit: Martin Krchnacek on Unsplash}