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COMMENT
Industry insight
DOUNIA FADI
BERKSHIRE HATHAWAY HOMESERVICES GULF PROPERTIES
Increasing demand in Dubai’s property market shines positive light on construction
T
he onset of COVID-19 caused industries across the globe to come to a standstill due to the several disruptions in economic activities. The construction sector was no exception. While several leading countries including the USA and India are still trying to recover from the effects of the pandemic, Dubai has steadfastly set a global benchmark for economic recovery with the recent pick up of the Emirate’s property market. Sales transactions in Dubai continue to rise as demand and prices increase hand in hand. In June 2021, over 6,388 sales transactions worth $4.05 billion were registered in Dubai, the highest recorded transactions in the last 8 years, according to the Dubai Land Department (DLD). Measures to curb excess supply have been showing effect as a result of major participants within the UAE collectively working together to address the issue of oversupply in Dubai's housing market. Dubai's pre-recession investment into developing major projects, combined with the country's healthy economic development has helped the country progress and become more enticing to international investors. There have certainly been parallels between
October 2021 | MEConstructionNews.com
how the UAE handled the global financial crisis of 2008 and how the country recently accelerated reforms to boost the economy as a whole. Proactive government incentives such as the introduction of a remote work visa, special investor and retirement visas, golden longterm visas, as well as the announcement of Operation 300bn are part of the government's long-term goal of diversifying UAE's economy and will help the development of UAE’s industrial base and generate local added value. UAE's economy is predicted to recover relatively quickly, with the IMF recently forecasting a 3.1% GDP growth for 2021 as compared to the 1.2% forecasted in October last year. UAE’s real estate market has already seen a healthy growth in 2021 so far, with a move from a domestically driven over the past few years, to one that is attracting and influencing more foreign and institutional capital. The economy is further supported by a revitalised growth in the UAE and Dubai’s non-oil foreign trade in 2020 which touched $321 billion. Investment prospects associated with Expo 2020 and introduction of regulatory reforms aimed at attracting foreign investors have helped to further stabilise the market and provide an optimistic outlook of the future for developers. With Expo 2020 expecting to attract more than 25 million visitors from all over the world, Dubai property prices after the event are expected to stabilize as potential short-term visitors for the event can turn into residents in the long run. The opening of branded new hotels in Dubai is also set to peak in the fourth quarter of 2021 during Expo 2020 with the expectations of rise in demand from a large influx of foreign visitors. The completion of ongoing infrastructure projects in the UAE along with various regulatory measures launched by the government will have a positive impact on the property market going forward and will only further continue to motivate developers to invest heavily in the market. As sales prices and rents proceed on an upward trajectory, a check on supply will ensure price resilience and developers with strong fundamentals and renewed business resilience need to be cautiously optimistic for a stronger 2022. Dounia Fadi, Chief Operating Officer of Berkshire Hathaway HomeServices Gulf Properties.
PAUL WALLETT TRIMBLE SOLUTIONS
How automation and digitalisation are reshaping construction
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odern construction projects today continue to take the spotlight as they exceed the industry's greatest achievements from the last decade, equipped with a new set of engineering and architectural tools and software. Industry leaders are starting to grasp the potential of these digital innovations and are integrating them to the latest projects at a pace never seen before. To sustain this momentum, many construction solution providers have taken steps to support and establish enhanced future collaborations and coordination with architects, project managers and engineers. They aim to help connect stakeholders to ensure that everyone is on the same page all throughout the construction process to fast-track success. The arrival of new technologies and construction processes such as 3D Constructible Building Information Modelling (BIM), 4D and 5D Construction Management, Mixed reality, Robotics, Cloud computing, and Internet of Things (IoT) help experts design and create structural marvels. By applying these technologies in construction, we can tangibly experience the seamless convergence of the physical and digital worlds. Through these technological developments across the world, particularly in the Middle East and North Africa, countries are starting to mobilise multibillion dollar projects in line with various country-specific initiatives.
