Dubai says 88 property projects launched in the first half

The boom in Dubai’s real estate market has been boosted by big-ticket projects, Sultan Butti bin Mejren, the director-general of DLD, said. Above, the Burj Khalifa. (Reuters)
Updated 12 August 2017
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Dubai says 88 property projects launched in the first half

UBAI: The Dubai Land Department (DLD) on Saturday said that a total of 88 property projects were launched during the first six months of the year.
The agency also said that 68 real estate projects were registered with the government, amounting to an investment value worth Dh21 billion (SR21.44 billion).
“Dubai is currently witnessing increasing interest from international investors, which has reinforced confidence in our real estate sector and its future prospects,” Sultan Butti bin Mejren, the director-general of DLD, said in a statement.
Bin Mejren also said that 713 developers are registered in agency’s database, alongside a total of 483 projects.
DLD earlier reported that property transactions in Dubai rose by 16.8 percent in the first half to Dh132 billion from Dh113 billion a year ago, with Dubai Marina the top choice in terms of number of transactions, followed by Business Bay, Al Barsha South 4 and Jebel Ali.
The number of total transactions also rose to 35,571 or 25.9 percent higher than 28,251 sales recorded in the year-earlier period.
The first half also saw the completion of 24 projects that had been initiated in previous years, bin Mejren said.
“The figures reaffirm the momentum and sustainability of Dubai’s real estate market, which is following an upward growth trajectory,” he said, aided by the development of big-ticket infrastructure projects and the positive investment climate.


Tesla secures land in Shanghai for first factory outside US

Updated 14 min 13 sec ago
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Tesla secures land in Shanghai for first factory outside US

BEIJING: Electric auto brand Tesla Inc. said it signed an agreement Wednesday to secure land in Shanghai for its first factory outside the United States, pushing ahead with development despite mounting US-Chinese trade tensions.
Tesla, based on Palo Alto, California, announced plans for the Shanghai factory in July after the Chinese government said it would end restrictions on full foreign ownership of electric vehicle makers to speed up industry development.
Those plans have gone ahead despite tariff hikes by Washington and Beijing on billions of dollars of each other’s goods in a dispute over Chinese technology policy. US imports targeted by Beijing’s penalties include electric cars.
China is the biggest global electric vehicle market and Tesla’s second-largest after the United States.
Tesla joins global automakers including General Motors Co., Volkswagen AG and Nissan Motor Corp. that are pouring billions of dollars into manufacturing electric vehicles in China.
Local production would eliminate risks from tariffs and other import controls. It would help Tesla develop parts suppliers to support after service and make its vehicles more appealing to mainstream Chinese buyers.
Tesla said it signed a “land transfer agreement” on a 210-acre (84-hectare) site in the Lingang district in southeastern Shanghai.
That is “an important milestone for what will be our next advanced, sustainably developed manufacturing site,” Tesla’s vice president of worldwide sales, Robin Ren, said in a statement.
Shanghai is a center of China’s auto industry and home to state-owned Shanghai Automotive Industries, the main local manufacturer for GM and VW.
Tesla said earlier that production in Shanghai would begin two to three years after construction of the factory begins and eventually increase to 500,000 vehicles annually.
Tesla has yet to give a price tag but the Shanghai government said it would be the biggest foreign investment there to date. The company said in its second-quarter investor letter that construction is expected to begin within the next few quarters, with significant investment coming next year. Much of the cost will be funded with “local debt” the letter said.
Tesla’s $5 billion Nevada battery factory was financed with help from a $1.6 billion investment by battery maker Panasonic Corp.
Analysts expect Tesla to report a loss of about $200 million for the three months ending Sept. 30 following the previous quarter’s $742.7 million loss. Its CEO Elon Musk said in a Sept. 30 letter to US securities regulators that the company is “very close to achieving profitability.”
Tesla’s estimated sales in China of under 15,000 vehicles in 2017 gave it a market share of less than 3 percent.
The company faces competition from Chinese brands including BYD Auto and BAIC Group that already sell tens of thousands of hybrid and pure-electric sedans and SUVs annually.
Until now, foreign automakers that wanted to manufacture in China were required to work through state-owned partners. Foreign brands balked at bringing electric vehicle technology into China to avoid having to share it with potential future competitors.
The first of the new electric models being developed by global automakers to hit the market, Nissan’s Sylphy Zero Emission, began rolling off a production line in southern China in August.
Lower-priced electric models from GM, Volkswagen and other global brands are due to hit the market starting this year, well before Tesla is up and running in Shanghai.