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DOUNIA FADI

BERKSHIRE HATHAWAY HOMESERVICES GULF PROPERTIES

Increasing demand in Dubai’s property market shines positive light on construction

The 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 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.

Industry insight

PAUL WALLETT

TRIMBLE SOLUTIONS

How automation and digitalisation are reshaping construction

Modern 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.

Recent data shows that the value of the newly initiated projects in the GCC, reached $35.6 billion during the first quarter of 2021. At least $19 billion, or 54%, of these projects are in Saudi Arabia, as the country ramps up efforts to achieve the goals set within the Saudi Vision 2030. Meanwhile, the upcoming Dubai Expo 2020 has been leading new tourism and hospitality projects, while public spending on infrastructure continues to contribute to the growth of the UAE’s construction market.

With the huge demand of these projects, construction companies are keen to implement ground-breaking innovations, which amongst others include digital document management systems and GPS tracking of manpower and materials to enhance project delivery.

In terms of data and design, many are now harnessing the power of augmented reality (AR) to automate measurements, modify visuals, and extract safety information provisions. Others use virtual design and construction (VDC) services offered by many leading construction solution providers in the region. These digital solutions play a fundamental role in reducing risks while optimising schedules and budgets.

We can also expect more automation and digitalisation to aid the more mechanical aspects of the construction operation in the following years. Major firms and contractors are already starting to acknowledge the efficiency of these new solutions and the additional safety that these provide to site operations.

For instance, on-site crews are being harnessed with sensor-equipped smart boots to warn in case of a possible collision with a construction vehicle. Others also use construction exoskeletons to provide additional power and support during routine movements like bending and lifting.

Furthermore, as sustainability gains traction in the construction industry, the need for the rollout of relevant technologies has grown. In the Middle East, green technology is seeing mass adoption. Companies that are using 3D modeling computer programs are well-positioned to design better performing buildings while organisations utilising software programs for accurate analysis and communication can achieve efficient waste management including reduced waste in design and production, better on-site collaboration and new opportunities to improve sustainability.

PRABHU RAMACHANDRAN

FACILIO INC

FM needs integrated data-led operations

The real estate industry has been extremely proactive, in adopting innovative and disruptive solutions, in recent years. This appetite for breakthrough enhancements is particularly apparent in the Facility Management (FM) function. Now, in the aftermath of the global pandemic, even bigger changes are underway in FM.

The crisis exposed issues that were lying dormant in FM operations - without warning, and during an intensely testing period. In the new normal, the challenges have escalated further; with added financial pressures due to the long lockdowns; redefined tenant expectations; limitations on the number of onsite personnel; and an urgent need to optimize processes and results.

As if such issues weren’t enough, the industry has also had to adapt to enhanced regulations and protocols, globally. The silver-lining is that, historically, such disruption has led to positive changes, and the unlocking of a new level of performance and profits. To achieve this, the industry is turning to technology; with the FM function being particularly suited to leading the charge. However, making the most of a new generation of tech successfully will depend on backing the right approach, strategies, and solutions. These are decisions that must factor in business bottom-lines, integration, end-user experiences, and scalability, at the same time.

No matter the potential of technology, it needs to be deployed in the context of the infrastructure and systems, which the industry already has in place; as well as to meet the needs of the diverse stakeholders, in the industry. For real estate Operations and Management to be optimised, portfolio-scale granular transparency is critical – both during implementation, and as a part of ongoing management. And making a building portfolio an IoT-enabled ecosystem – with AI and Machine Learning leveraging real-time data from all assets - is the most effective way to achieve this. In fact, such a system can only create the desired optimisation, if it can seamlessly access data related to aspects as diverse as workforce, resource, and systemrelated processes, concurrently. Creating such a comprehensive and real-time transparency has clear functional benefits, including: • Preventive maintenance • Optimal work order processing • Off-the-rack templates and schedules • A centralized and global asset, space, and inventory repository • API-led integrations with financials and transactions • Third-party contractor tracking and vendor management, and much more

Not only does this Integrated and Datadriven model of FM result in enhanced business bottom lines, for building owners and operators, it also transforms the function’s scope from asset management, to experience management, and beyond.

A centralised command and control centre, which enables portfolio-wide operational integration, gives FM teams real-time access to data that traditional CaFM solutions could not. It empowers FM workforces to be proactively service-focused and take ownership of the end-user experience, safety, and wellbeing.

A real-world example of the advantages to a real estate business would be that such an IoT and AI-enabled O&M approach allows FM teams to create detailed plans to unlock value-centric services and upgrades, with the capability to present very specific CAPEX and ROI figures to the rest of the management team. Every stakeholder in the real estate ecosystem is able to access similar multifaceted value in this model; by enhancing efficiencies for all assets and processes, enabling data-driven decision making and enhanced services.