Gulf Business REAL ESTATE - July 2024

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PROPERTY

PULSE: GCC's real estate sector is riding the wave

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ABU DHABI, RAK GAIN

GROUND: Why global HNWIs are queuing up to live here

ROOTED IN NATURE

ONA ROLL

Performance highlights of Dubai and Abu Dhabi’s residential and commercial property sector in the first quarter

DUBAI’S NEW FOREST PARADISE

“Ghaf Woods is more than just a new community – it’s the beginning of a new chapter in premium developments with creative and sustainable community design at its core,” says Ahmed El Shamy, CEO, Majid Al Futtaim Properties

Nanotechnology in building materials is pushing the boundaries of durability and efficiency. Nanomaterials enhance the strength, flexibility, and resilience of construction materials, leading to longer lasting and more sustainable buildings.”

GAURAV AIDASANI Founder and MD, Union Square House Real Estate

WATERFRONT PROPERTIES

Combining luxury, sustainability and scenic views, these seven upcoming developments promise to redefine luxury living in the UAE’s capital

MARKET BUZZ

From luxury amenities to sustainable living solutions, discover how industry leaders are redefining urban living in Dubai

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Cover: Freddie N Colinares

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Editor-in-chief

Obaid Humaid Al Tayer

Managing partner and group editor Ian Fairservice

Chief commercial officer

Anthony Milne anthony@motivate.ae

Publisher Manish Chopra manish.chopra@motivate.ae

EDITORIAL

Group editor

Gareth van Zyl Gareth.Vanzyl@motivate.ae

Editor

Neesha Salian neesha@motivate.ae

Digital editor Marisha Singh marisha.singh@motivate.ae

Senior feature writer Kudakwashe Muzoriwa Kudakwashe.Muzoriwa@motivate.ae

Senior art director

Freddie N. Colinares freddie@motivate.ae

PRODUCTION

General manager – production S Sunil Kumar

Production manager Binu Purandaran

Production supervisor Venita Pinto

SALES &

MARKETING

Senior sales manager Sangeetha J S Sangeetha.js@motivate.ae

Digital Sales Director

Mario Saaiby mario.saaiby@motivate.ae

Group marketing manager

Joelle AlBeaino joelle.albeaino@motivate.ae

ON A ‘GROWTH’ ROLL

BASED ON THE Q1 NUMBERS, THE RESIDENTIAL AND OFFICE MARKETS IN DUBAI AND ABU DHABI CONTINUE TO EXHIBIT ROBUST PERFORMANCE, DRIVEN BY RISING PROPERTY VALUES, STRONG DEMAND, AND STRATEGIC DEVELOPMENTS

WORDS PRATHYUSHA GURRAPU

The residential market in Dubai continued its robust performance into Q1 2024, characterised by rising property values and strong demand across various segments. Over 8,351 units were handed over in Q1 2024 while an additional 29,690 units are expected to be handed over between Q2 to Q4 2024, bringing the yearly forecast for 2024 to nearly 38,000 units – albeit broadly in line with 2023 handover figures.

Overall residential supply delivery figures remain in line with our forecasts with no major headwinds of oversupply in the near term. However, significant project launch volumes may impact the supply-demand equilibrium after two to four years when most of these projects are scheduled for delivery, provided they are delivered on time.

Having said that, as Dubai’s population continues to increase at a steady pace, we expect the upcoming supply (that is already being sold in the off-plan market) to see sustained rental and secondary sales demand upon handover.

Dubai residential project launches

Apartment project volumes in Q1 2024 saw a 22 per cent increase compared to Q1 2023. Villa project launches, on the contrary, saw a sharp decline of 30 per cent during the same period. Despite the sustained demand for villas, developers remain slower to respond to this surge, largely because of limited land acquisition opportunities.

Stabilisation in the secondary sales market

Secondary market transaction volumes have stabilised over the last three quarters indicating sustained levels of end-user demand, whereas off-plan launch volumes have shown large variances based on prominent project launches – albeit with an overall upward trajectory.

The off-plan market saw a 22 per cent year-on-year increase while the secondary market saw a 16 per cent increase. The signs of moderation in transaction volumes are likely to have a softening effect on sales prices, especially within the affordable and mainstream market segments. This is due to the widening gap between bid and ask prices, fuelled by growing concerns regarding affordability.

Dubai residential sales prices

While transaction volumes are starting to show moderation, there are no signs of capital values slowing down yet, with city-wide sales prices rising for the 15th consecutive quarter. City-wide sales prices are up by 20 per cent year-on-year and 66 per cent higher than Q1 2020 (pre-Covid19).

The majority of villa districts we track have experienced a year-on-year increase in sale prices of above 20 per cent. One contributing factor to this surge in villa sales prices, especially in older areas like The Lakes and Jumeirah Park, is the trend of renovating and reselling units at notably higher prices, thereby elevating the average price in the area.

While villa prices surged, apartment price increases moderated in prime sub-markets such as Palm Jumeirah, City Walk, Downtown Dubai, and Dubai Marina, with sub-20 per cent yearon-year increases.

In contrast, affordable and mid-market apartment communities including Discovery Gardens, Dubai Sports City, and Dubai Land, owing to a lower base sale price, saw sharper increases of 30 per cent and above.

Dubai residential rental market

Rental prices also increased for the 13th consecutive quarter, with a city-wide rise of 20 per cent year-on-year, translating to a 72 per cent increase compared to Q1 2020 (pre-Covid19). Household incomes are not increasing in line with the rising rents, further contracting disposable incomes.

The RERA calculator, which was recalibrated on March 1 this year to be better aligned with open-market pricing, is expected to help reduce the disparity between renewals and new rents. This is expected to cause inconvenience to tenants as they face higher rents during renewals, and potentially lead to more movement in the rental market as tenants look to relocate due to no savings achieved during renewals. That said, the calibration of the calculator is expected to result in a sharp slowdown in disputes over rental increases.

The trend of rising rents is increasing affordability challenges for tenants, prompting many to seek more affordable housing options while many prefer to buy homes rather than rent to avoid rental escalations and relocations.

RESIDENTIAL DELIVERIES IN DUBAI 2011 - 2024

Soaring ultra-prime market in Dubai

A record 402 residential properties were sold above Dhs20m in Dubai in Q1 2024, displaying a 40 per cent year-on-year increase. With growing demand for luxury properties (from ultra-high net worth individuals), particularly waterfront properties and branded residences, we foresee this segment to remain strong as global wealth continues to gravitate to Dubai.

Dubai office market supply

In Q1 2024, no new office supply was handed over. However, throughout the year, we anticipate over 1.85 million square feet of gross leasing area to be delivered. There are many major landlords and freezones activating projects now to address the growing demand. Immersive Tower in DIFC is the first of multiple developments within DIFC expected to begin construction along with DMCC and TECOM set to launch their next phases.

However, no relief is expected until 2026 due to a minimum of a two to three year construction lifecycle. Furthermore, as most of the upcoming Grade A supply is highly likely to be preleased, limited substantial new supply is expected to be brought to market in the foreseeable future, deepening the supply crunch.

High occupancy levels and continued supply crunch underpin office rental increases

Driven by record absorption, Dubai’s Grade A office occupancy currently stands at 93

per cent. If this trend continues, the city could face a shortage of Grade A office space by Q4 2025, with pressure gradually easing from 2027. Contrary to other global markets which are at much lower office occupancy levels, Dubai’s office demand remains robust, leading to sustained upward pressures on occupancy levels.

To give perspective on the scale of office demand, over 14 million square feet of office space was absorbed in the last three years whereas only three million square feet of new stock was brought to market (although most of it was pre-leased)

As office demand intensifies and outstrips supply, citywide office rents spiked by 25 per cent year-on-year. This is a record rise in office rents, particularly in single-owned Grade A assets, as landlords capitalise on high demand levels and diminishing vacancy levels. Interest from new market entrants remains high and we have also seen a shift in inquiries, with many more large spatial footprint requirements emerging over Q1 2024, compared to relatively smaller requirements of previous quarters.

We are witnessing an acute shortage of large office spaces in centrally located Grade A districts, particularly in DIFC, Downtown Dubai, Sheikh Zayed Road and Business Bay. As tenants struggle to expand, we are seeing many continue a hybrid

workplace strategy and hot-desking to accommodate the growing headcount in their existing footprint - albeit where visa allocations permit.

The rising supply crunch and high rents are increasingly impacting new market entrants and incumbents, and are expected to sustain upward pressure on occupancy levels and rents.

ABU DHABI MARKET TRENDS

Abu Dhabi residential market

The market saw a handover of 124 units including apartments and villas in Q1 2024, with a total of 6,641 residential units expected to be delivered by the end of the year. Major upcoming handovers are concentrated in Yas Island and Al Maryah Island, accounting for over two-thirds of the new units.

While transaction activity continues to be dominated by off-plan sales, we have seen a

TO GIVE PERSPECTIVE ON THE SCALE OF OFFICE DEMAND, OVER 14 MILLION SQUARE FEET OF OFFICE SPACE WAS ABSORBED IN THE LAST THREE YEARS WHEREAS ONLY 3 MILLION SQUARE FEET OF NEW STOCK WAS BROUGHT TO MARKET (ALTHOUGH MOST OF IT WAS PRE-LEASED).

YAS ISLAND SAW THE LARGEST RENTAL PRICE SURGE AT 17 PER CENT, WHILE SAADIYAT ISLAND RECORDED A 9 PER CENT DECREASE . OVERALL, THE MARKET TRENDS REFLECT STRONG DEMAND AND STEADY GROWTH IN BOTH THE SALES AND RENTAL SECTORS ACROSS ABU DHABI .

sharper growth in secondary market transactions. Transactions for secondary properties increased by 34 per cent, while o -plan sales transaction volumes grew by 18 per cent.

Sales prices for villas outperformed apartments, with a 13 per cent year-on-year increase in villa prices, compared to a 6 per cent rise in apartment prices. Significant villa price increases were seen in Khalifa City (28 per cent), Yas Island (8 per cent), and Saadiyat Island (7 per cent), while moderate increases were observed in Al Reef Villas and Al Raha Gardens (both 4 per cent). For apartments, Saadiyat Island experienced a notable 16 per cent increase, with Reem Island and Yas Island also seeing significant rises of 9 per cent and 8 per cent respectively.

The rental market showed continued growth, with city-wide villa rents increasing by 5 per cent and apartment rents by 8 per cent.

Yas Island saw the largest rental price surge at 17 per cent, while Saadiyat Island recorded a 9 per cent decrease. Overall, the market trends reflect strong demand and steady growth in both the sales and rental sectors across Abu Dhabi.

Abu Dhabi Office Market

The demand for prime and Grade A o ces in Abu Dhabi continues to outstrip supply. Prime office stock consistently outperforms the market due to its limited availability, with occupancy levels hovering around 95 per cent. Average leasing rates for prime o ce buildings range between Dhs1,950 and Dhs2,800 per square meter per year, depending on the building’s size and location.

Prime and Grade A o ce are expected to experience sustained upward pressure on rental rates and occupancy levels. The scarcity of these premium spaces will intensify competition among tenants, driving rental prices upward.

Within the financial sector, demand for o ce space remains robust, with banking and finance sectors constituting nearly 30 per cent of all o ce enquires. There is also significant interest from the oil and gas, healthcare, and security sectors.

Tenants prefer Grade A and fitted spaces, and there is increasing demand for serviced o ces. Reem Island has emerged as a key area due to its lower rental rates compared to Al Maryah Island.

The extension of Abu Dhabi Global Market’s jurisdiction to Al Reem Island o ers a solution to the supply-starved market. This expansion aligns with the Growth Strategy 2023-2027, aiming to position Abu Dhabi as a prominent global city with a flourishing financial sector contributing significantly to its GDP.

In summary, the Abu Dhabi o ce space market faces a persistent gap between supply and demand, which is expected to continue. Prime and Grade A o ce spaces will likely experience increased demand, driving rental rates and occupancy levels upward. Tenants may consider Grade B/C options in peripheral locations due to limited prime space availability in 2024, potentially leading to higher rental rates in this segment. We anticipate this supplydemand disparity to persist for the next 2-3 years until subsequent phases of o ce supply projects are completed.

The writer is director and head of Research and Consultancy at Cushman & Wakefield Core.

REDEFINING COMMUNITY LIVING

AHMED EL SHAMY, THE CEO OF MAJID AL FUTTAIM – PROPERTIES, SAYS GHAF WOODS EMBODIES THE GROUP’S PIONEERING SPIRIT, AND IT IS THE FIRST DEVELOPMENT IN DUBAI TO OFFER FOREST LIVING

WORDS: KUDAKWASHE MUZORIWA PHOTOS: AHMED ABDELWAHAB

COVER STORY GHAF WOODS

Dubai’s property market, a testament to the city’s resilience, expanded by 39 per cent on average in Q1 2024 compared to the corresponding period in 2021 just a ter the pandemic. While a probable correction is expected in the next few years, Ahmed El Shamy, the CEO of Majid Al Futtaim – Properties, reassures that the real estate industry regularly goes through multi-year cycles of boom and bust periods.

This usually leads to a bit of a plateauing, probably some minimal corrections in the city’s prime residential market, but the market remains robust, he says.

El Shamy extols the growth in Dubai’s real estate sector as the city has risen into the upper echelons of the luxury end of the market, going toe-to-toe with long-established hubs as a magnet for high-net-worth individuals (HNWIs), a segment that is expected to spend as much as $4.4bn in the emirate’s luxury segment in 2024.

Dubai’s prime residential market entered an uncertain 2024 on a solid footing, with capital values increasing 17.4 per cent

in 2023 and a more modest 5.6 per cent in the second half of the year. The city’s luxury property market continues to be a global outlier, having grown by 26.3 per cent over the past 12 months, 16.3 per cent in 2023, following a record 44.4 per cent increase in 2022, according to Knight Frank.

Real estate investors buy properties in Dubai for investment, capital gains, second homes, holiday homes, or rental income. They also invest as part of a strategy to diversify their investment portfolio.

Dubai broke a decade-long record for real estate property sales in 2023 and saw rents jump to unprecedented levels, bucking the trend in much of the world, where values have largely dropped amid high interest rates and a slowing global economy.

Savills said, in a February report, that the [Dubai] market is still relatively

competitively priced by global standards at $850 per square foot. The real estate advisory firm said the Middle East tourism and business hub offers a comparatively low cost of living, a relatively easy visa process, and a warmer climate, which continues to attract international and domestic buyers.

Sustainability and community living have emerged as fundamental drivers in Dubai’s evolving residential property market, influencing investors and occupiers alike. El Shamy emphasises that sustainability in luxury real estate is not just a trend but a strategic move towards a more prosperous, appealing, and responsible future.

“Dubai has established itself as a global hub attracting families and working professionals. Developers need to differentiate themselves, and we focus on building strong communities through our unique ecosystem of retail, entertainment, and lifestyle offerings,” he adds.

NURTURING SUSTAINABLE LIVING

Dubai’s skyline incorporates sustainability initiatives into every aspect of real estate development, creating a dynamic and ecofriendly urban landscape.

The demand for environmentally conscious and socially responsible living options continues to grow in the city, a trend that is being driven by several factors that are revolutionising the real estate landscape across the UAE.

El Shamy stresses that sustainability sits at the core of Majid Al Futtaim. “Sustainability is central to our growth strategy, and we are lucky to be in the UAE, a country on a mission to achieve carbon neutrality by 2050. We play right into that strategy, and for us, sustainability is no longer an option but an imperative, an enabler and the best way to do business,” he says, adding that sustainable living is ingrained in the developer’s DNA.

Majid Al Futtaim launched its newest development, Ghaf Woods, Dubai’s first forest living community, in June. The property development is poised to redefine indoor-outdoor living, anchoring world-class design and architecture in the surrounding natural environment.

“Ghaf Woods is more than just a new community – it’s the beginning of a new chapter in premium developments with creative and sustainable community design at its core, and we are confident that its appeal will extend far beyond the UAE,” notes El Shamy.

Dubai has established itself as a global hub attracting families and working professionals. Developers need to differentiate themselves, and we focus on building strong communities through our unique ecosystem of retail, entertainment, and lifestyle offerings.”

Trees are a significant feature of Ghaf Woods. They help reduce soil erosion, conserve water, and provide shade, keeping the community’s average temperatures around five degrees Celsius cooler than other parts of the city. The development will be home to 35,000 trees suitable to the local climate, including the Ghaf, and the forest will outnumber the number of residents.

These features are not differentiators for Majid Al Futtaim but align with Dubai’s quality-of-life strategy and the company’s sustainability goals.

El Shamy stresses that Ghaf Woods is more than just a new community. The development aligns with the company’s overall focus in the GCC and North Africa regions, with a particular emphasis on the UAE, Saudi Arabia, and Egypt.

“It embodies our pioneering spirit – just as we introduced snow into the desert with Ski Dubai, waterfront living in Tilal Al Ghaf, Ghaf Woods will be the first development in Dubai to offer “forest living,” he adds.

El Shamy underscores that 72 per cent of the gross sales value (GSV) in the Dubai residential property market is in the apartment business, an essential segment that Majid Al Futtaim had previously not considered. Ghaf Woods is the developer’s entry into that market. The company started with townhouses/villas and is venturing into the more substantial bulk of the market: the apartments.

“We are positioning Ghaf Woods within the upper middle entry of the residential property market, so not only are we in the right market segment, but we are in the middle price range o ering within the a ordable luxury property sector,” adds El Shamy.

“We will introduce a high-end premium product for that price range, and we will o er something unique through customisation upgrade packages – an uncommon o ering in this market.”

Ghaf Woods embraces a harmonious living experience marked by thriving greenery, enhanced connectivity, and unrivalled sustainability. “We set clear science-based targets for sustainability, and we are embedding innovative technologies for power generation, water consumption, and recycling,” El Shamy unpacks, noting that the company utilises water from humidity and air conditioning condensation.

“We mandate the use of sustainable materials and special living arrangements in our developments. We are constantly looking for ways to minimise water usage and ensure optimal water supply for the trees.”

Majid Al Futtaim plans to release the development in eight phases over the next seven years. Ghaf Woods, which covers 738,000 square metres of land o the Sheikh Mohamed bin Zayed Highway, o ers residents more than 7,000 premium units, including one-, two-, and three-bedroom apartments and penthouses.

The development dovetails with the Dubai 2040 Urban Master Plan, an initiative to expand green cover by 100 per cent.

GHAF WOODS , WHICH COVERS 738,000 SQUARE METRES OF LAND,

IS LOCATED OFF THE SHEIKH MOHAMED BIN ZAYED HIGHWAY, OFFERS RESIDENTS MORE THAN 7,000 PREMIUM UNITS

STRONG FOUNDATIONS

Dubai’s residential real estate landscape is undergoing a significant transformation amid growing demand for community living as savvy and aspirational home-seekers increasingly value social connections and a sense of belonging. “We go beyond just selling apartments – we provide customisation packages that allow residents to personalise their living spaces. This, combined with the sense of community and the indooroutdoor fusion o ered by Ghaf Woods, creates an exceptional living environment,” says El Shamy.

A Property Finder survey published in May revealed that residential property buyers in Dubai are seeking communities that align with their desired lifestyles. The draw of community living lies in its ability to enhance residents’ overall quality of life. Ghaf Woods aligns with the property developer’s focus on building mixed-use communities. “Our ecosystem is unmatched. We o er a place where people can live, work, shop, and play in the same community,” El Shamy shares.

In 2018, Majid Al Futtaim unveiled its landmark destination, Tilal Al Ghaf. The development epitomises how community-living residential developments meet the growing demand arising from the collective consciousness of a new segment of home-seekers

Sustainability is central to our growth strategy, and we are lucky to be in the UAE, a country on a mission to achieve carbon neutrality by 2050. We play right into that strategy, and for us, sustainability is no longer an option but an imperative, an enabler and the best way to do business.”

who are reframing how we live in the postpandemic future.

“Tilal Al Ghaf is di erent from the master plan we launched a few years ago because we realised that home-seekers were clamouring for a sense of belonging and bigger as well as more luxurious units,” adds El Shamy.

“There was a demand for community living while still having privacy – that’s when we introduced the islands, which o ered customers both.”

El Shamy says Majid Al Futtaim is leveraging its design studio to cater to its sustainability targets and the home-seekers living in the company’s communities. “We want people to view our communities as a destination, a lifestyle proposition they would enjoy living there.”

Earlier in 2024, the property developer broke ground for Alaya and Elysian by awarding contracts worth Dhs3bn for two residential projects that will be handed over by mid-2026. With more than three million square meters of walkable neighbourhoods connected by forest pathways, cycling tracks, jogging trails, and green spaces, the mixeduse community o ers a modern resort-style living experience in the heart of Dubai.Tilal Al Ghaf is a community o ering a luxurious and sustainable lifestyle with amenities such as open spaces and outdoor recreational facilities providing residents with everything they need for a comfortable and convenient lifestyle. Over the years, Majid Al Futtaim has become a name that people trust for innovative, customer-focused solutions, and Ghaf Woods marks the start of an exciting new chapter in premium developments with creative and sustainable community design at its core. El Shamy closes out by saying that the development’s allure will resonate well beyond the borders of the UAE.

MAJID AL FUTTAIM GO BEYOND JUST SELLING APARTMENTS – WE PROVIDE CUSTOMISATION PACKAGES THAT ALLOW RESIDENTS TO PERSONALISE THEIR LIVING SPACES

BRINGING TOGETHER TECH AND REAL ESTATE

GULF BUSINESS BREAKFAST SERIES DEBUTS WITH INSIGHTFUL DISCUSSIONS ON REAL ESTATE AND TECHNOLOGY IN DUBAI

G

ulf Business launched its ‘Business Breakfast’ series on June 12, with an event spotlighting the latest trends in technology and their impact on business and industry.

The gathering, held at the Grand Plaza Movenpick Media City, drew nearly 100 industry professionals and featured keynote speeches, panel discussions and networking opportunities.

The event also celebrated Gulf Business’ 28th anniversary and Motivate Media Group’s (MMG) 45-year journey under the visionary leadership of Ian Fairservice, MMG managing partner and group editor.

The morning commenced with opening speeches from Gareth van Zyl, group editor, and Manish Chopra, publisher at Gulf Business

The keynote address was delivered by Atif Rahman, founder and chairman of ORO24 Developments, who highlighted Dubai’s extraordinary real estate growth. Rahman noted an 875 per cent rise in transaction value and a 576 per cent increase in volume from 2017-2020 compared to recent years, attributing this to the visionary leadership of Dubai’s rulers.

“Dubai’s unique story is characterised by the government’s proactive role in driving progress,” Rahman said. “As we look to the future, the real estate and construction industries must now harness AI, proptech, and building information modelling to drive progress.”

PANEL DISCUSSIONS

The proptech panel discussion, moderated by Rahman, included insights from Fibha Ahmed, vice president of Property Sales, Bayut & dubizzle, Louai Abou Khzam, co-founder of Prosper Real Estate, and as Al Msaddi and Zagrebelny. They discussed the role of proptech in reshaping the built environment and the outlook for Dubai’s real estate market.

The event’s tech panel, moderated by van Zyl, delved into the transformative impact of AI, 5G, cloud adoption, and cybersecurity. Panelists included Mohamed Taha Benssiba, head of AI for Europe South, Middle East and Africa at Oracle; Vishal Kapil, CIO of GMG; John Casey, MD at TaxReady.ae (Virtuzone); Sunil Kumar Peer, director of Industry Sections at Huawei, and Mohit Pandey, head of Sales, META region at Seagate Technology.

The real estate sector took center stage in the second panel discussion, which was preceded by keynote addresses from Firas Al Msaddi, CEO of äm Properties, and Alex Zagrebelny, founder of R.Evolution Group. Al Msaddi highlighted Dubai’s record-breaking transaction volumes and values, while Zagrebelny emphasised sustainability in construction.

MORE TO COME

The event concluded with van Zyl expressing gratitude to all participants and sponsors, including Oracle, ORO24 Developments, GMG, TaxReady.ae, Huawei, Seagate Technology, äm Properties, R.Evolution Group, Bayut & dubizzle, and Prosper Real Estate.

“This event was just the beginning,” van Zyl said. “We have a series of panels and business breakfasts planned, culminating in the Gulf Business Awards in September, which promises to be our biggest awards event yet.”

GCC’S REAL ESTATE BOOM IN THE SPOTLIGHT

ANSHUMAN MAGAZINE OF CBRE SHARES INSIGHTS INTO THE DYNAMIC REAL ESTATE LANDSCAPE OF THE GCC REGION

WORDS MARISHA SINGH

he GCC is making significant strides in reducing its dependency on oil, setting it apart from many other resource-rich regions, and “this shift is the catalyst for the current growth, driving demand for a range of new property types”, says Anshuman Magazine, the chairman and CEO for India, Southeast Asia, the Middle East, and Africa of Dallas-based real estate services giant CBRE.

THe further elaborates, “The pivot away from oil dependency towards sectors such as tourism, logistics, and real estate has been transformative. This diversification has spurred massive construction across the GCC, including sports stadiums, hotels, and extensive road networks. The scale of infrastructure development, the concrete being poured daily, particularly in Saudi Arabia, the UAE, and other GCC countries, is unprecedented,” highlights Magazine. These evolving trends are also influencing CBRE’s operational strategies and growth trajectory in the region. Magazine shared, “In Saudi Arabia, we have tripled our manpower in the past year, and we continue to expand our teams in UAE cities like Abu Dhabi and Dubai. The regional growth has

significantly impacted our headcount and overall organisational expansion.”

REAL ESTATE BOOM IN SAUDI ARABIA AND THE UAE

Saudi Arabia, the largest economy in the GCC, is undergoing rapid real estate development under its Vision 2030 programme. The kingdom’s initiatives to position Riyadh as a major commercial hub have consequently intensified real estate activities. Currently, the GCC’s real estate projects are valued at approximately $1.68tn, with Saudi Arabia contributing 63.1 per cent of this total.

The UAE follows with $409bn, making up 24.4 per cent of the total, as per CBRE’s Middle East Real Estate 2024 Outlook report.

“Since the announcement of the Vision 2030 programme, Saudi Arabia has seen rapid growth. The mandate for companies to establish their headquarters in Riyadh has supercharged the commercial real estate sector,” he acknowledges.

“From commercial space occupancy levels to the traffic on the streets of the capital city, there is a lot of business activity in the country.”

PROJECTIONS AND TRENDS

Hence, Magazine’s short-term outlook for Saudi Arabia’s real estate market is highly optimistic. Government investments in infrastructure and the initiation of giga and mega-projects in tourism and logistics are already yielding positive results. “This will increase the demand for various property types, including office spaces, industrial facilities, and hospitality accommodations,” he predicts.

In the longer term, spanning over five years, economic diversification and technological advancements will further shape the market, establishing Saudi Arabia as a regional hub. “As the kingdom moves beyond its oil-reliant economy, the real estate market will mirror this shift. We anticipate greater integration of technology within the sector, enhancing property management, transactions, and overall market efficiency,” he added.

CROSS-BORDER INVESTMENTS AND REGIONAL INTEGRATION

The GCC’s strategic location is fostering a rise in cross-border investments, particularly between the Middle East and India, and increasingly with Southeast Asia. “India is a significant market for the GCC, with notable investments from UAE and Saudi sovereign funds in areas like affordable housing,” notes Magazine.

This investment trend is reciprocated with capital flows from India into the GCC, particularly in the residential sector of cities like Dubai. These mutual interests are laying the groundwork for substantial future growth. “In the coming years, I expect an increase in trade and investments between Asia and the Middle East, surpassing past levels,” he said.

THE MATURING UAE REAL ESTATE MARKET

THE PIVOT AWAY FROM OIL DEPENDENCY TOWARDS SECTORS SUCH AS TOURISM, LOGISTICS, AND REAL ESTATE HAS BEEN TRANSFORMATIVE. THIS DIVERSIFICATION HAS SPURRED MASSIVE CONSTRUCTION ACROSS THE GCC, INCLUDING SPORTS STADIUMS, HOTELS, AND EXTENSIVE ROAD NETWORKS.”

The UAE, especially Dubai, continues to outpace itself, with substantial new developments in other emirates such as Ras Al Khaimah and Abu Dhabi. “The UAE is not nearing saturation but maturing. Continued investments in infrastructure, technology, and sustainability will sustain growth in the UAE and the broader Middle East,” Magazine pointed out.

He emphasised that while prime areas in Dubai may stabilise, there remains significant growth potential in emerging sectors like logistics and technology. The market’s emphasis on innovation and sustainable development is a crucial driver.

GOVERNMENT INVESTMENT AND TECHNOLOGICAL ADOPTION

Governments across the GCC are reshaping the real estate market through extensive investments in infrastructure and Proptech solutions. This aggressive push is crafting a tech-enabled real estate environment, distinguishing it from more traditional markets worldwide.

“GCC governments are investing heavily in infrastructure and Proptech, accelerating real estate development and fostering a market that is more tech-enabled compared to traditional ones,” noted Magazine.

This real estate boom is accompanied by a transition to sustainability, which is “increasingly” becoming a cornerstone of

real estate development in the GCC. The focus on energy-efficient buildings and green development practices is evident in both new and existing projects, aligning the region with global environmental standards and setting a precedent for future developments, he highlighted. “Sustainability is a priority in the GCC, with a keen focus on energy-efficient buildings and green practices, which might not be as prevalent in all global regions,” he emphasised.

FUTURE TRAJECTORIES AND OPPORTUNITIES

Magazine remains confident that the UAE has not reached its peak, citing ongoing investments in infrastructure and technology that support long-term growth. “We have not peaked yet. We will continue to see investments flowing in and growth occurring,” he affirmed.

Additionally, the GCC’s strategic position makes it a gateway to Africa, presenting new opportunities as African economies expand and integrate more with global markets. “Africa’s population will significantly contribute to the global population. Economies like South Africa, Nigeria, and Egypt will play major roles,” he observed. As the region evolves, the interplay between cross-border investments and strategic development will shape the future of real estate in the GCC and beyond. With strategic investments and a focus on sustainability, the GCC is setting new benchmarks for real estate development globally, concludes Magazine.

ABU DHABI, RAS AL KHAIMAH ARE EMERGING

AS RESIDENTIAL HOTSPOTS

INTERNATIONAL BUYER ACTIVITY HAS SKYROCKETED IN ABU DHABI, WITH SALES TO NON-RESIDENT INVESTORS JUMPING FROM 3 PER CENT IN 2021 TO 28 PER CENT IN 2023, REVEALS A RECENT KNIGHT FRANK REPORT

bu Dhabi is giving Dubai a run for its money as it emerges as the new playground for highnet-worth individuals (HNWIs), reveals the latest report from real estate consultancy Knight Frank.

According to the consultancy’s second annual 2024 Destination Dubai report, HNWIs around the world are prepared to spend $408.3m on residential real estate in Abu Dhabi and a further $388.5m in Ras Al Khaimah (RAK).

Knight Frank surveyed 317 HNWIs – 217 around the world and 100 GCC-based HNWI expats – to explore their appetite and aspirations concerning investing in real estate in Dubai, Abu Dhabi and Ras Al Khaimah (RAK).

These HNWIs have a net worth of $ 5.4bn and own 1,149 homes around the world between them.

In the report, Knight Frank said that while Dubai was still at the top of the list (67 per cent), there was a shot in the arm for Abu Dhabi too: 23 per cent of HNWIs worldwide would now like

to invest in property in the UAE capital. For those whose wealth is in seven decimal figures (over $15m), the figure jumps to 57 per cent.

FACTORS DRIVING ABU DHABI’S GROWING POPULARITY

A steady market, exclusive yacht clubs and vibrant beaches are some of the reasons why Abu Dhabi is fast becoming a sought-after turf among these discerning industrialists, bankers and aristocrats.

Stability is the big selling point in Abu Dhabi’s residential market. The capital’s property prices have held steady, with no wild swings for the past four years.

DURING 2023, ABU DHABI REGISTERED A RECORD

15,653 PROPERTY DEALS

(UP 73.7 PER CENT IN 2022) TOTALLING DHS87.1BN IN PROPERTY DEALS

Pics: Getty Images

Shehzad Jamal, partner – Strategy & Consultancy, MEA, Knight Frank, shared: “Residential values in Abu Dhabi have remained relatively stable for the last four years, which has played a significant role in encouraging domestic buyers to transition from renting to owning. And with homes in Abu Dhabi trading for around Dhs1,000 per square foot, they remain about onethird cheaper than Dubai, which is further adding to the appeal of home ownership in the city amongst domestic buyers. International buyers too have become increasingly active, contributing to the rising deal volumes now being recorded in the emirate.”

This creates stability, combined with very successful tourism campaigns, which are starting to attract international attention. For example, 50 per cent of expat HNWIs based in the GCC and 67 per cent of global HNWIs worth more than $20m were inspired to come to Abu Dhabi by its tourism campaigns.

The report highlights a watershed moment for Abu Dhabi. While traditionally trailing Dubai in luxury real estate, the capital is now attracting investors seeking not just returns, but also a primary residence or a second home.

WITH HOMES IN ABU DHABI TRADING FOR AROUND

DHS1,000 PER SQUARE FOOT,

THEY REMAIN ABOUT ONE-THIRD CHEAPER THAN DUBAI, WHICH IS FURTHER ADDING TO THE APPEAL OF HOME OWNERSHIP IN THE CITY AMONGST DOMESTIC BUYERS

A recent record-breaking sale of a Nobubranded penthouse further underscores this shift. The property not only fetched the highest price ever for an Abu Dhabi property but also signifies the city’s emergence as a magnet for global capital.

Additionally, international buyer activity has skyrocketed, with sales to non-resident investors jumping from 3 per cent in 2021 to 28 per cent in 2023.

During 2023, Abu Dhabi registered a record 15,653 property deals (up 73.7 per cent in 2022) totalling Dhs87.1bn in property deals, across all sectors, up on the Dhs61bn figure reached in 2022. Notably, the capital welcomed 1,098 non-resident investors in 2023, which represents a 175 per cent increase over 2022.

Abu Dhabi Island reigns supreme as the most desired location for property acquisition among HNWIs (21 per cent), despite not being designated as an investment zone for international buyers.

Saadiyat Island, home to the F1 Grand Prix, Louvre Abu Dhabi, and Guggenheim Abu Dhabi, follows closely as the secondfavourite target neighbourhood.

With villa prices on Saadiyat Island hovering around $1,500 per square foot – a far cry from Dubai’s Palm Jumeirah’s $7,000 per square foot mark – it’s no wonder this location is a hot commodity.

THE RISE OF RAK

The report also unveiled an interesting trend: the emergence of

FEATURES TRENDS

RAK as a serious contender in the UAE’s luxury real estate market. With nearly $388.5m in private capital poised to enter RAK, the emirate is rapidly closing the gap with Abu Dhabi and establishing itself as a global destination for both tourism and property investment.

Ras Al Khaimah, known for its rugged landscapes and adventurous activities, has captured the attention of 2 per cent of global HNWIs as a potential investment destination.

The planned arrival of the Wynn Resort, including its integrated casino, is seen as a game-changer for RAK, transforming its fortunes and attracting a new breed of tourists. Interestingly, 46 per cent of global HNWIs view RAK more favourably due to its economic transformation and growing tourism infrastructure.

While investment budgets for RAK properties are lower than Abu Dhabi ($3.4m), they cater to a broader range of investors. Additionally, 37 per cent of HNWIs exceeding $15m in net worth are willing to invest $2-4.9m in RAK real estate, and a further 21 per cent are prepared to spend over $5m. East Asian HNWIs appear most enthusiastic, with 28 per cent willing to commit $2-4.9m for property in RAK – the highest across all regions.

Faisal Durrani, partner – head of research for Knight Frank MENA, said: “What’s fascinating is that not only have we managed to unearth $388.5m in private capital that is poised to move into the RAK property market, but that this figure is just 4.8 per cent lower than we’ve uncovered for Abu Dhabi, highlighting how quickly RAK’s appeal has grown globally both as a tourist destination and a property investment location.”

STABILITY IS THE BIG SELLING POINT IN ABU DHABI’S RESIDENTIAL MARKET. THE CAPITAL’S PROPERTY PRICES HAVE HELD STEADY, WITH NO WILD SWINGS FOR THE PAST FOUR YEARS.

WHERE LAND MEETS LUXURY

ABU DHABI’S UPCOMING WATERFRONT RESIDENCES

WE LOOK AT SEVEN UPCOMING DEVELOPMENTS ACROSS ABU DHABI THAT OFFER LUXURIOUS AMENITIES WITH A LIFESTYLE THAT BLENDS NATURE, CULTURE, AND EXCLUSIVITY

WORDS MARISHA SINGH

SHA RESIDENCES EMIRATES BY IMKAN, AL JURF

Scheduled for handover in 2026, SHA Residences combines luxury and wellness in a stunning seaside setting at Al Jurf. Prices range from Dhs4.6m for apartments to Dhs29.9m for villas, providing a variety of options from cosy apartments to expansive three-level villas. Each residence embodies elegance and environmental consciousness, featuring materials such as marble, stone, and local woods.

REEM HILLS, AL REEM ISLAND

Reem Hills, a gated community on Al Reem Island, is set to deliver its first phase of apartments by Q2 2027. This development includes both apartments and villas spread across six buildings unified by a shared podium. The design integrates lush greenery, offering a layered living experience.

MAYYAS AT THE BAY, YAS ISLAND

Slated for completion in Q4 2026, Mayyas at the Bay offers a range of living options in an eight-story apartment complex starting at Dhs846,000. The minimalist architecture features a multi-level façade resembling the silhouette of a ship.

RAMHAN ISLAND

Ramhan Island, a natural island development off the coast of Abu Dhabi, is scheduled for handover in Q4 2026, with prices starting at Dhs12.8m. This ambitious project involves a global consortium of builders and is divided into four luxurious sub-communities: Marine Island Villas, Breeze Island Villas, Cove Island Villas, and Views Island Villas. Amenities include a world-class marina, yacht club, luxury boutiques, and direct access to private beaches.

GARDENIA BAY, YAS ISLAND

Anticipated for completion by Q2 2027, Gardenia Bay offers a refreshing approach to urban living with low-rise buildings starting at Dhs910,000. Located on Yas Island, the development features sand-coloured facades that complement the natural coastline.

FEATURES ABU DHABI

OHANA BY THE SEA, GHADEER AL TAYR

Expected to be ready by Q2 2025, Ohana by the Sea is an exclusive community featuring luxury twostorey villas, strategically located between Abu Dhabi and Dubai, with prices starting at Dhs7.2m. Buyers can customise their villas, choosing from four to nine bedrooms.

THE SOURCE, SAADIYAT ISLAND

Set for handover in Q4 2026, The Source is a nine-story residential complex on Saadiyat Island, offering 200 apartments with prices starting from Dhs2.6m. Residents enjoy stunning views of the Zayed National Museum and the dancing fountains.

TOP SCORES

A MULTI-YEAR SPONSORSHIP DEAL WITH PREMIERSHIP LEAGUE TEAM ARSENAL HAS HELPED PUT SOBHA REALTY ON THE MAP WHEN IT COMES TO ITS GROWING REAL ESTATE FOOTPRINT

WORDS JUSTIN HARPER

Luxury property developer Sobha Realty is becoming a more prominent brand across the UAE as more of its new developments start to take shape. And a four-year sponsorship deal with Arsenal FC has projected it onto a global stage. The ‘home-grown’ developer likes to do things di erently and it shows. Recently, Sobha’s unique business model has even been covered by Harvard Business School. Founded by PNC Menon, Sobha has built a reputation for quality, detail and trustworthiness. It’s what Sobha calls “the art of the detail”. But what caught Harvard’s eye was its backward integration model. The property developer handles all design and engineering, contracting, manufacturing and property management. From start to finish, everything is in-house, without using any outsourced vendors which is typically the case with most real estate developers. By building this in-house infrastructure, Sobha hopes to ensure quality and timely finishing. Considering its properties were largely una ected by the recent floods, it looks to be on the right track.

NEW PLAYER

The Arsenal sponsorship deal highlighted Sobha’s lo ty ambitions. The North London football club is among the top 20 biggest in the world and it has a huge global following. As part of the deal, Arsenal’s training ground has been renamed Sobha Realty Training Centre a ter the Dubai-based real estate developer became the first training ground naming rights partner. Sobha’s brand and logo is prominently displayed across the vast facility and sta are familiar with the company’s history.

TAKING PRIDE OF PLACE IS SOBHA HARTLAND, A SPRAWLING 8 MILLION SQUARE FOOT WATERFRONT COMMUNITY OF LUXURIOUS APARTMENTS, VILLAS, AND TOWNHOUSES IN DUBAI

PNC Menon, founder and chairman, Sobha Realty

Sobha Realty is also a principal partner of Arsenal and the o cial training kit sleeve partner for the club’s men’s and women’s teams. And fans are beginning to know the brand too. As for buyers, it is too early to see a shi t in the breakdown of nationalities. But the hope is that more UK and international buyers will take notice of Sobha’s properties.

LUXURY

The upmarket feel is evident across the Sobha experience, culminating in its swanky Park Lane showroom, sitting prominently opposite London’s Green Park. GulfBusinesswas invited on a familiarisation trip to London to see the Sobha experience first-hand.

Inside you will find 3D models of Sobha developments, both built and upcoming. Taking pride of place is Sobha Hartland, a sprawling 8 million square foot waterfront community of luxurious apartments, villas, and townhouses in Dubai. Alongside Sobha Hartland are equally impressive looking developments including Sea Haven, Waves Opulence and Verde.

While it may not be the biggest developer in the UAE, Sobha Realty is the second most recalled brand amongst premium real estate intenders in the UAE market, according to an independent survey.

EXPANSION PLANS

There seems to be no limit to Sobha’s ambitions and identifying key metropolitan regions with high demand for luxury properties as well as substantial investment potential is crucial to

THE PROPERTY DEVELOPER HANDLES ALL DESIGN AND ENGINEERING, CONTRACTING, MANUFACTURING AND PROPERTY MANAGEMENT. FROM START TO FINISH, EVERYTHING IS INHOUSE, WITHOUT USING ANY OUTSOURCED VENDORS WHICH IS TYPICALLY THE CASE WITH MOST REAL ESTATE DEVELOPERS.

its success. Expansion into the US market is also on the cards and will be “a pivotal milestone for Sobha Realty and a vital part of our strategy to consolidate our presence in one of the world’s largest real estate markets,” a spokesman said.

UNLOCKING DUBAI’S REAL ESTATE POTENTIAL

MICHAEL LAHYANI, THE FOUNDER AND CEO OF PROPERTY FINDER, BELIEVES THAT DUBAI’S LONG-TERM RESIDENCY VISA SCHEME IS FUELLING THE GROWTH OF THE REAL ESTATE MARKET AS MORE PEOPLE ARE INTERESTED IN OWNING PROPERTY IN THE CITY

WORDS KUDAKWASHE MUZORIWA

The rally in the UAE property market in 2023, particularly in Dubai, broke a decade-long record for home sales in 2023, while rental rates soared to unprecedented levels driven by an influx of wealthy investors, new long-term visa schemes and the introduction of permits for job seekers and freelancers.

The property boom in the UAE stands in marked contrast with markets worldwide, where high interest rates dampen transactions. Growth extends beyond Dubai to other emirates, including Ras Al Khaimah and Abu Dhabi.

.“The UAE’s long-term visa initiatives are driving growth in the country’s property market, particularly in Dubai,” says Michael Lahyani, the founder and CEO of Property Finder.

“The introduction of the 10-year Golden Visa and now the Blue Visa gives assurance to individuals considering investing in the real estate sector, as the extended visa tenure o ers potential investors a different perspective.”

Lahyani further notes that Dubai has historically been a city where many people prefer renting. Still, with the introduction of the Golden visa, there has been a shi t towards home ownership in the city. “This has led to a noticeable change, with a growing number of buyers now being end users rather than just investors,” he explains.

A RECORD

40,000 HOMES ARE EXPECTED TO BE DELIVERED BY DUBAI PROPERTY DEVELOPERS THIS YEAR

DUBAI’S PROPERTY BOOM

Dubai’s real estate market has performed robustly across all sectors over the years, fuelled by tourism and the business hub’s preferred safe haven status amidst geopolitical and economic headwinds in other global investment markets.

The city’s real estate sector saw a 53 per cent year-on-year increase in transaction volume and a 38 per cent growth in transaction value to 17,713 and Dhs46.5bn, respectively, according to a report by Property Finder.

A record 40,000 homes are expected to be delivered by Dubai property developers this year and a similar number in 2025, according to S&P Global. That’s high compared to historic levels at 15,000 to 30,000 homes.

Though the city’s red-hot property market broke a decadelong record for total home sales in 2023, Lahyani projects “some kind of normalisation” in 2024 as growth is expected to hover around sustained levels in the future.

“So what level will the growth stabilise at? We will start seeing that in the second half of the year. Will it be in the mid-20 per cent or 10 per cent? I don’t have a crystal ball, but I can say that demand continues to be strong on Property Finder websites in terms of visits and leads converting to sales,” shares Lahyani. He emphasises that there is no evidence of things changing fundamentally.

FEELING AT HOME

Dubai’s property market has undergone a remarkable transformation as the concept of community living is gaining significant traction. National urbanisation plans are enhancing community living by accounting for the daily movement of people from housing to workspaces, creating connections and mobility pathways to improve the quality of life.

Property Finder’s debut white paper, published in May, highlights that communities that offer a blend of residential, commercial, lifestyle, and cultural uses in a locality are preferred options for home seekers and investors, by extension, developers. The paper sheds light on the significance of integrated communities where people feel a sense of belonging. Supplied

“IN THE FUTURE, COMMUNITIES NEED TO BE MORE THAN THEMEBASED; THEY SHOULD BE CURATED, WITH MEMBERSHIP INVOLVING A VETTING

“People seek a sense of belonging, which means being part of a community with likeminded individuals. For this to happen, there needs to be a clear positioning of the community, such as identifying it as a family community, an athletic community, a wellbeing community, etc.,” explains Lahyani.

Lahyani says that in the future, communities need to be more than theme-based; they should be curated, with membership involving a vetting and approval process similar to a private club. “This ensures that community members are compatible and share common values,” he adds.

The charm of community living is in how it boosts the quality of life. These communities promote social cohesion and reduce feelings of isolation by cultivating a sense of belonging and camaraderie.

RIDING THE GROWTH WAVE

Property Finder raised $90m in debt from Francisco Partners in May to help finance the buyout of its first institutional investor, BECO Capital, signalling continued foreign interest in the UAE’s thriving real estate market.

“When we say we are optimistic about the future of Dubai’s real estate market and how technology will help people find their homes, it’s not just words. We are putting our money where our mouth is by buying more shares,” Lahyani shares.

Lahyani says that Property Finder is a profitable company, and even with 50 per cent growth, the online real estate platform can be free of external capital to fund its growth. “We do not sell physical goods; we sell services with excellent margins, and we do not require significant investment for growth,” he adds, noting that the company decided to use excess capital to buy back shares rather than distribute dividends.

To advance trust and transparency, Property Finder launched PF Academy in May. This initiative leverages the platform’s innovative technology to empower real estate industry professionals and is backed by the Dubai Land Department.

Founded in 2007, Property Finder has grown exponentially over the years. It has operations across the Middle East, including Qatar, Bahrain, and Egypt. Going forward, the company plans to increase its market share in Saudi Arabia and Türkiye.

THE CITY’S REAL ESTATE SECTOR SAW A 53 PER CENT YEAR-ON-YEAR INCREASE IN TRANSACTION VOLUME

Owning UAE real estate through a corporate vehicle

REAL ESTATE OWNERSHIP THROUGH A CORPORATE ENTITY OFFERS SEVERAL IMPORTANT BENEFITS OVER PURCHASING AS AN INDIVIDUAL, ESPECIALLY WHEN IT COMES TO FINANCIAL EFFICIENCY AND LEGAL PROTECTION

The UAE real estate market is among the most dynamic and lucrative in the world. At a time when other markets around the world are experiencing downturns due to economic uncertainties, property demand in the UAE continues to rise.

With an influx of new residents and businesses along with policy reforms and infrastructure developments, the market has gone from strength to strength.

In fact, in 2023 alone, Dubai recorded an impressive 56 per cent rise in real estate sales transactions, for a total value of Dhs411.74bn.

Similarly, Abu Dhabi saw a 75 per cent increase in transactions over the same period.

While many of these investors purchase privately as individuals, few are aware of the option to own real estate through a corporate vehicle and the benefits it brings.

Why purchase UAE real estate through a company?

Real estate ownership through a corporate entity offers several important benefits over purchasing as an individual, especially when it comes to financial efficiency and legal protection.

Tax is a good example. While there’s no personal income tax in the UAE, VAT does apply in certain real estate transactions, so using a company as the purchasing vehicle means you can manage VAT more effectively, reclaiming VAT paid on business-related expenses like professional fees for real estate agents and legal advisors, marketing expenses, and maintenance costs.

Using a corporate structure also allows you to pool expenses related to property management, maintenance and utilities.

These can be treated as business expenses, offering financial efficiencies in terms of cash flow management within the company.

But, perhaps the biggest benefit of property ownership as a company is in asset management and liability protection. Any real estate assets owned by a corporation are legally separated from the personal assets of the owners which means an extra layer of protection against personal financial risk if the owner is involved in any legal disputes or has financial difficulties.

This legal separation isn’t only useful for protecting personal wealth, it also helps with investment scaling. For investors looking to expand their operations and buy multiple properties, holding them all under a corporate umbrella may make it easier to manage and can reduce operational costs through bulk handling and efficiencies: a big help when handling a growing real estate portfolio.

What types of companies can hold properties in the UAE?

In Dubai, the ability of a company to own property is closely tied to its ownership structure and whether it is locally or foreign-owned.

Companies entirely owned by UAE or GCC nationals are more flexible in that they can acquire property anywhere in Dubai, holding it through freehold, long lease, or usufruct rights for up to 99 years. On the other hand, foreign-owned companies face more restrictions and can only purchase property in specific areas approved by the Dubai Land Department (DLD).

The list of approved areas for foreign investment in Dubai is regularly updated to reflect changing regulations and market trends. While not extensive, it includes some

of the most desirable locations such as Dubai Marina, Downtown Dubai, Palm Jumeirah, Jumeirah Lakes Towers (JLT), and Jumeirah Beach Residence (JBR), among others.

The updates also aim to expand the options available and make the market more inclusive for foreign investors.

Typically, in free zones, companies are allowed to own property within their designated zones and certain areas authorised by local real estate authorities.

Onshore companies registered as LLCs, on the other hand, have broader options and can purchase real estate in many designated areas across the Emirates, provided they comply with local laws.

This does, however, mean that companies registered onshore in foreign jurisdictions must first establish a UAE presence through a branch or rep office to get the necessary licences and permits.

SPECIALISED STRUCTURES

Other specialised entities such as real estate investment trusts (REITs) and holding companies can also be used for property ownership and investment and offer operational efficiencies that individual or non-specialised company structures can’t.

For example, a holding company registered in one of the three approved jurisdictions: Dubai International Financial Centre (DIFC), Jebel Ali Free Zone (JAFZA), or Ras Al Khaimah International Corporate Centre (RAKICC) offers benefits like tax exemptions and privacy and also asset protection for estate and inheritance planning.

As the two main offshore jurisdictions, RAKICC and JAFZA are effective ways to manage international real estate holdings. However, Before incorporating, it’s important to verify with potential banks whether they will accept your chosen corporate structure.

Some banks have issues with offshore companies, so it’s important to check before you incorporate. This will help prevent roadblocks in accessing banking services later on.

DIFC is also often favoured for investments for its common law legislation and the allowance for different share classes.

FOUNDATIONS IN DUBAI ARE A UNIQUE LEGAL STRUCTURE MAINLY USED BY WEALTHY INDIVIDUALS AND FAMILIES TO MANAGE AND PROTECT BOTH THEIR PERSONAL AND BUSINESS ASSETS

Holding companies can also be used with other estate planning structures like trusts and foundations either in the UAE or abroad.

Foundations in Dubai are a unique legal structure mainly used by wealthy individuals and families to manage and protect both their personal and business assets. They’re typically used for philanthropy but can be equally effective for non-charitable uses like wealth management, asset protection, and succession planning.

Functionally, a foundation operates similarly to both a corporation and a trust. It’s a distinct legal entity, separate from its founder, giving it a degree of independence. Uniquely, however, they’re often known as ‘orphan’ entities, meaning they lack shareholders or members and don’t distribute shares or other ownership titles. Instead, they’re governed by specific charters and by-laws, and managed by a council dedicated to carrying out the founder’s directives.

In the UAE, particularly within the Abu Dhabi Global Market and Dubai International Financial Centre, foundations can own property in designated zones.

This arrangement not only facilitates asset management but also protects against legal claims such as forced heirship so that the assets are preserved according to the founder’s intentions.

MATCHING BUSINESS STRUCTURES WITH OPPORTUNITIES

Ultimately, if you’re planning to invest in UAE real estate through a corporate entity, making sure that your business structure aligns with your investment goals and compliance needs is essential.

Each type of company brings its unique considerations, including tax implications, legal liabilities, and management flexibility, so understanding the UAE’s specific regulatory environment and market dynamics is vital.

By carefully choosing the right type of corporate entity and being informed about regional norms and requirements, you can maximise your real estate investment and avoid potential risks and complexities. This not only ensures compliance with local laws but also positions your investment for success.

The writer is the director, Legal and Compliance at the Knightsbridge Group.

Kim Medina

How pre-construction tech is transforming the property sector

BUILDING INFORMATION MODELLING MINIMISES WASTE, CONTROLS COSTS, COORDINATES WORKFLOWS AND OPTIMISES LABOUR NEEDS FOR FUTURE CONSTRUCTION

The integration of advanced technology has brought a transformative change in the ever-evolving landscape of real estate, construction and architecture. Bringing the element of innovation into the picture, pre-construction technologies are reshaping the future of construction properties and changing the face of the real estate sector, drastically changing how the real estate industry operates and how future construction projects will be completed.

Property pre-sales in the construction and real estate industry involve a combination of architectural drawings, scale models, and artistic renderings during the planning process. While these tools offer glimpses into a client’s

future project, they often do not provide potential buyers with a comprehensive understanding of the final project.

Since some of these traditional methods have limitations in terms of realism and cannot convey the look and feel of the property, potential buyers not only faced challenges in envisioning their future homes but also faced obstacles such as unnecessary building variation expenses during post-construction due to inaccuracy and errors in the planning stage.

PRE-CONSTRUCTION TECHNOLOGY IS TRANSFORMING THE SECTOR

The rapid advancement of technology over the last few decades has exceptionally revolutionised the construction and real estate industry.

Pre-construction technology in particular, has emerged as a game changer; and by leveraging this technology to assist future construction, it brings a wide range of benefits for architects, property developers, engineers,

Due to rapid technological advancement, the property purchasing process has also drastically changed. AR has turned out to be a game changer in the commercial real estate industry by enhancing property viewings with visual site experiences and offering visual solutions for changes in real estate development or renovation.

and interior designers including reduced time and avoiding future errors and costs in the building process.

Over recent years, people have increasingly used advanced and cutting-edge technologies to allow prospective homeowners, tenants, property developers, architects, etc., to visualise their properties on a di erent scale and model how the project might look and feel upon completion.

This advancement is making processes faster, smarter, and more sustainable.

One of the key drivers of the evolution in the real estate, architecture and construction industry is building information modelling (BIM), a digital representation of the physical and functional characteristics of a building or facility.

Serving as a collaborative knowledge platform for architects, engineers and contractors, BIM facilitates real-time decision-making during the construction project’s lifecycle. This technology minimises waste, controls costs, coordinates workflows and optimises labour needs for future construction.

3D RENDERING AND OTHER TECHNOLOGIES

The introduction of 3D rendering has played a transformative role in pre-construction sales. It assists in future construction, as it allows prospective homeowners, architects and other stakeholders to explore highly detailed, photorealistic representations of properties before they are built. Bridging the gap between innovation and reality eliminates uncertainties associated with traditional planning methods.

Integrated projection technologies have also created a significant impact in the real estate, architecture and construction industry by projecting enlarged building floorplans in a real-life 1:1 scale, allowing individuals to physically walk through their plans, providing a

realistic and immersive experience rather than relying on abstract floorplans.

The ability to make real-time adjustments to plans helps in assisting future construction by preventing unnecessary building variation costs, resource and time wastage, and enhances client satisfaction by fostering a sense of trust and confidence in the development of the project.

Augmented reality (AR) is yet another transformative technology that has taken pre-construction planning to the next level while making a mark in the realm of construction visualisation technologies, further amplifying the impact of pre-construction technologies. It e ciently assists future construction with precision and speed.

From colourless virtual experiences to coloured and photo-realistic virtual experiences, AR services provide an immersive and interactive for clients that transcend traditional design presentations, allowing them to visualise their dream homes and envision projects with unprecedented detail. Furthermore, it is a valuable, cost-e ective experience for property developers and real estate professionals looking to sell o -plan or unbuilt properties in the market as they can opt for preconstruction technology to sell the property rather than investing in constructing showcase villas, staged apartments and offices for this purpose as it is expensive, labour intensive and time-consuming.

Due to rapid technological advancement, the property purchasing process has also drastically changed. AR has turned out to be a game changer in the commercial real estate industry by enhancing property viewings with visual site experiences and o ering visual solutions for changes in real estate development or renovation. It encourages sales of properties that are under construction as it provides the imagery of how the apartment look like upon completion.

To conclude, disruptive technology is ever-evolving and as it continues to create an impact in the real estate and construction industry, it is also pivotal for those seeking e cient and elevated solutions in the field.

Incorporating pre-construction technologies during the planning process not only contributes to a decrease in post-construction corrections and future cost overruns but is also time e cient and improves communication among individuals involved in the process resulting in quick decision-making.

This, in turn, is reshaping the way we conceive and execute future construction projects.

The writer is the CEO of Lifesize Plans Dubai.

Georges Calas

Smart cities, biometrics, nanotech: Trends shaping the property sector

TECHNOLOGICAL ADVANCEMENTS IN THE REAL ESTATE SECTOR ARE DRIVING EFFICIENCY, ENHANCING USER EXPERIENCES, AND FOSTERING SUSTAINABLE PRACTICES

The real estate industry, traditionally reliant on brick and mortar, is undergoing a digital revolution. According to Precedence Research, the global proptech market size was valued at $30.16bn in 2022.It is estimated to reach about $133.05bn by 2032, growing at a CAGR of 16 per cent from 2023 to 2032.

The adoption of proptech solutions has surged, with the majority of real estate companies implementing at least one type of technology in their operations. These statistics highlight the profound impact of technological advancements on the real estate sector, driving efficiency, enhancing user experiences, and fostering sustainable practices.

AERIAL INNOVATION

Unmanned aerial vehicles (UAVs), commonly known as

drones, are making significant inroads into the real estate sector. Their capacity to capture aerial photography and videography has become a game-changer. The stunning visuals from above provide prospective buyers with unique perspectives that traditional methods cannot match, thereby elevating the marketing and showcasing of properties.

Drones excel in conducting land surveys and property inspections. Tasks that were once labour-intensive and time-consuming are now executed with greater precision and speed, streamlining processes and reducing costs.

AUTOMATED PROPERTY MANAGEMENT

The advent of automated property management systems is transforming operational efficiency in real estate. Advanced software solutions automate routine tasks, allowing property managers to focus on strategic

initiatives. These systems provide comprehensive tools that simplify tenant communication, lease tracking, and maintenance scheduling.

The integration of IoT devices has ushered in an era of predictive maintenance. Real-time monitoring of building systems facilitates early detection of potential issues, thereby preventing costly repairs and enhancing tenant satisfaction.

BIOMETRIC ACCESS CONTROL

Biometric access control systems are setting new standards in security and convenience.

By leveraging unique biological traits, these systems ensure only authorised individuals gain entry to residential and commercial properties. This technology not only enhances security but also o ers a seamless and personalised experience for residents and employees.

AUGMENTED REALITY FOR INTERIOR DESIGN

Augmented Reality (AR) is making waves in the realm of interior design. AR allows users to visualise and customise their living spaces before any physical changes occur. Through overlaying digital information onto the real world, AR provides an immersive experience that aids in decision-making and enhances customer satisfaction. Potential buyers and tenants can now virtually furnish and decorate their future homes, leading to more informed and confident choices.

NANOTECHNOLOGY IN BUILDING MATERIALS

in this field are paving the way for the development of smart materials that can self-repair, adapt to environmental changes, and improve energy e ciency.

QUANTUM COMPUTING

Quantum computing is poised to revolutionise real estate analysis by tackling complex data problems with unprecedented speed and accuracy. Through advanced data analysis, this cutting-edge technology can enable real estate professionals to make more informed decisions regarding property investments, market trends, and risk assessments.

The integration of IoT devices has ushered in an era of predictive maintenance. Realtime monitoring of building systems facilitates early detection of potential issues, thereby preventing costly repairs and enhancing tenant satisfaction.

The incorporation of nanotechnology in building materials is pushing the boundaries of durability and e ciency. Nanomaterials enhance the strength, flexibility, and resilience of construction materials, leading to longerlasting and more sustainable buildings. Innovations

The potential applications of quantum computing in real estate are vast, from optimising investment portfolios to enhancing predictive analytics.

SMART CITIES

Smart city initiatives are at the forefront of urban development, integrating advanced technologies to improve the quality of life for residents. Such initiatives encompass a wide range of applications, including intelligent transportation systems, energy-e cient buildings, and connected infrastructure.

Harnessing the power of IoT, AI, and other emerging technologies, smart cities aim to create more sustainable, e cient, and livable urban environments.

ADVANCED GEOSPATIAL TECHNOLOGY

Advanced geospatial technology is revolutionising land assessment and urban development. This technology o ers precise topographical surveys, aiding in accurate land assessment, planning, and development. High-resolution mapping and monitoring capabilities ensure that real estate professionals have the detailed information necessary for making informed decisions. Embracing these innovations enhances operational e ciency and security, and provides a competitive edge in an increasingly competitive market. As these trends continue to evolve, the real estate sector will undoubtedly witness further advancements, leading to a more innovative and sustainable future.

The writer is the founder and managing director, Union Square House Real Estate.

Gaurav Aidasani

Building a greener future

WHY SUSTAINABLE DEVELOPMENT IS THE RESPONSIBILITY OF REAL ESTATE DEVELOPERS

By 2050, it is projected that one in seven people globally – nearly 70 per cent of the world’s population - will live in urban areas.

As we move towards this forecast, several concerns must be addressed, including water scarcity and carbon emissions. The former is topical as over two billion people on the planet are predicted to live in areas facing severe water stress, while the latter is also of pressing importance as the building and construction sector must reduce its carbon emissions by 80 per cent to help realise the Paris Agreement. Such issues underscore the need for sustainable construction practices in today’s real estate landscape and developers must play their part accordingly. Unfortunately, the misconception surrounding sustainable residential development is that it is longer, tedious, and more expensive, but here’s the truth: the fastest, most convenient path isn’t always the best route.

For example, many developers tend to over order materials for their projects as a precaution against onsite mishaps, particularly when facing tight deadlines. Not only does this often result in wasted capital but it also translates to surplus items ending up as miscellaneous waste in landfills, which negatively impacts the environment. Essentially, precise and strategic planning can lead to higher return on investment and more streamlined construction processes, while also benefitting our planet. This is becoming increasingly essential in today’s world, especially in the UAE, where sustainability is taking centre stage.

GROWING INTEREST IN SUSTAINABILITY

There is a rising demand for sustainable products from consumers, investors, and businesses. This is evident in several industries, but in the UAE’s real estate landscape, it is especially apparent with investors

and end-users demonstrating a willingness to pay a premium for healthier indoor environments and reduced environmental impacts. In fact, last year, a UAE survey found that 70 per cent are willing to pay more for sustainable properties.

As a result, developers are increasingly incorporating elements into their projects that meet such needs. Projects that prioritise sustainability and wellbeing, will be instrumental to the country’s overall development while aligning with key governmental initiatives. Our project, ZāZEN Gardens in Al Furjan is an example of this.

The UAE’s National Program for Happiness and Wellbeing is an initiative that encourages businesses to adopt practices that contribute to societal wellbeing. However, real estate developers can also align with it by prioritising the integration of features such as EV charging to help facilitate the country’s long-term vision of futureproofing its infrastructure and simultaneously meeting the needs of residents. Constructing energy-efficient buildings can result in lower operating costs and project value appreciation over time - appealing to developers, investors, and the government.

Similarly, the Dubai Clean Energy Strategy 2050 will help attract environmentally conscious buyers who will play an integral role in shaping the UAE’s real estate future.

TAKING ACTION

In an era where the effects of climate change are becoming increasingly evident, there are heightened risks and escalating costs if all industries don’t play their part. In real estate, buildings must accordingly be designed with sustainability in mind to help mitigate the risk of extreme weather events, resource scarcity, and ever-evolving regulatory landscapes – otherwise, it becomes that much more challenging to usher in a sustainable era that the world is collectively working towards.

70 PER CENT OF UAE BUYERS ARE WILLING TO PAY MORE FOR SUSTAINABLE PROPERTIES

The Dubai Clean Energy Strategy 2050 will help attract environmentally conscious buyers who will play an integral role in shaping the UAE’s real estate future

2030 that aims to reduce the country’s emissions to less than 100 kilowatt-hours by the end of this decade. This ambitious goal is part of a broader strategy that includes green building certifications, energy efficiency codes, and waste management protocols to ensure that new developments contribute positively to the environment and society.

The UAE, being the pioneer that it is, has acknowledged the importance of a sustainable future through several initiatives that reinforce its commitment to sustainable development; namely the UAE Green Agenda

In essence, the path to a sustainable future is paved with responsible, forwardthinking development. By embracing sustainable practices, we are not just contributing to global sustainability goals but also safeguarding our collective future, one building at a time.

Just as success is built with a solid foundation, creating a sustainable future requires careful planning, dedication, and a commitment to long-term benefits over short-term gains. By embracing these practices, developers can shape cities that thrive for generations, but they must be willing to invest upfront as the wellbeing of our future hinges on the lasting economic, environmental, and social practices we build now.

The writer is the COO and founding member of ZāZEN Properties.

The UAE’s National Program for Happiness and Wellbeing is an initiative that encourages businesses to adopt practices that contribute to societal wellbeing. However, real estate developers can also align with it by prioritising the integration of features such as EV charging to help facilitate the country’s long-term vision of future-proofing its infrastructure and simultaneously meeting the needs of residents. Pic: Supplied

Madhav Dhar

Empowering local talent

Dubai’s ascent as a global metropolis is undeniable. Its iconic skyline, a testament to ambition and engineering prowess, continues to captivate the world. As the city looks towards the future, a critical question emerges: how can Dubai ensure its economic and aesthetic development remains not just impressive, but culturally relevant too?

The answer lies in a strategic shift towards a future where domestic craftsmanship and innovation go hand in hand. This is not a call to abandon Dubai’s bold spirit; it’s a call to refine it. The aim is to foster a future where the emirate’s architectural identity is not just globally inspired, but also deeply rooted in local talent and innovation.

EMPOWERING LOCAL CRAFTSMANSHIP

Dubai’s architectural landscape is dominated by glass, steel, and record-breaking heights. While these structures have placed the city on the map, a focus solely on grandeur risks overlooking the importance of fostering a distinct architectural identity.

One way forward is to support local architects through grants and competitions. Nurturing homegrown talent will lead to designs that are more attuned to the region’s cultural heritage and climatic conditions. Imagine iconic structures that seamlessly blend the innovative spirit of Dubai with traditional elements like the windcatcher, or Malqaf, for natural ventilation. A fusion of this nature would not only

Nurturing

homegrown talent will

lead

to designs that are more attuned to the region’s cultural heritage and climatic conditions. Imagine iconic structures that seamlessly blend the innovative spirit of Dubai with traditional elements like the windcatcher, or Malqaf, for natural ventilation.

create a more unique aesthetic, but also demonstrate a commitment to environmental responsibility.

ENHANCING EDUCATIONAL AND RESEARCH INITIATIVES IN ARCHITECTURE AND URBAN DEVELOPMENT

As Dubai evolves, investing in educational and research initiatives in architecture and urban development can play a pivotal role in shaping its future. Establishing specialised programmes and research centres dedicated to sustainable design, innovative construction techniques, and urban planning will equip future generations with the knowledge and skills needed to drive progress. Collaboration between universities, research institutions, and industry professionals can foster a culture of continuous learning and innovation, ensuring that new ideas and solutions tailored to Dubai’s unique environment are constantly explored. Moreover, creating partnerships with international institutions can facilitate the exchange of knowledge and best practices, positioning Dubai as a global leader in architectural education and research. O ering scholarships and grants to Emirati students and researchers focusing on sustainable architecture and urban development will encourage the exploration of new ideas.

FOSTERING A CULTURE OF DISRUPTION

Dubai has established itself as a hub for business and

tourism. The next step is to create an ecosystem that nurtures innovation within the real estate sector itself. This can be achieved by establishing dedicated innovation hubs for local startups and tech entrepreneurs focused on propelling the sector forward.

These hubs could provide co-working spaces, access to venture capital, and mentorship from industry leaders. Imagine a space where architects collaborate with engineers on using AI for building optimization, or where designers explore integrating virtual reality experiences into real estate projects.

INTEGRATING DIGITAL CREATIVITY WITH PHYSICAL SPACES

The burgeoning art scene in Dubai is evident. The city can further bridge the gap between the physical and digital realms by integrating digital art installations into real estate developments. Picture interactive murals that respond to their surroundings, or the incorporation of augmented reality experiences that enhance the user experience within buildings. Such an approach creates a more dynamic and stimulating urban environment, positioning Dubai as a leader in the convergence of art, technology, and real estate.

A CITY SHAPED BY VISION

Dubai’s future holds immense potential. Through elevating local cra tsmanship and innovation, the city ensures its economic success goes hand in hand with a thriving cultural identity.

Achieving such a transformation requires a collaborative e ort from architects, engineers, policymakers, artists, and entrepreneurs. By working together, Dubai can redefine its own cityscape and leverage its strengths to build a future that’s not just awe-inspiring, but also fosters a rich cultural heritage.

The writer is the founder and CEO of AMIS Properties.

THE BURGEONING ART SCENE IN DUBAI IS EVIDENT. THE CITY CAN FURTHER BRIDGE THE GAP BETWEEN THE PHYSICAL AND DIGITAL REALMS BY INTEGRATING DIGITAL ART INSTALLATIONSINTO REAL ESTATE DEVELOPMENTS

IMAGINE A SPACE WHERE ARCHITECTS COLLABORATE WITH ENGINEERS ON USING AI FOR BUILDING OPTIMIZATION, OR WHERE DESIGNERS EXPLORE INTEGRATING VIRTUAL REALITY EXPERIENCES INTO REAL ESTATE PROJECTS

Neeraj Mishra

BIG AMBITIONS

EMAD SALEH , FOUNDER AND CHAIRMAN OF AMWAJ DEVELOPMENT, SHARES HIS INSIGHTS ON THE FACTORS DRIVING THE RAPID GROWTH OF DUBAI’S REAL ESTATE MARKET AND SHOWCASES THE COMPANY OFFERINGS IN THE LUXURY MID-MARKET SEGMENT

With over 1.5 million square feet in planned developments, AMWAJ is looking to to redefine Dubai’s mid-market residential segment with its ecofriendly communities.

Here, Emad Saleh, founder and chairman of AMWAJ Development, discusses Dubai’s real estate sector, the importance of family-centric amenities, strategic location choices, and the company’s commitment to after-sales services.

Dubai’s real estate market has been experiencing rapid growth in recent years. What factors do you see driving this growth, and how is AMWAJ Development positioned to capitalise on this trend?

Dubai’s real estate market has seen meteoric growth since early 2021, continuously setting new sales and volume records as the city remains a top location for new residents. For instance, in

May alone, sales transactions reached Dhs46.5bn, with the volume soaring to 17,713 units. These record-breaking numbers highlight the sector’s resilience and the ever-increasing demand.

This growth is driven by Dubai’s appeal as a safe, happy, and thriving destination offering a better quality of life, its status as a global trade hub with business-friendly regulations, and its myriad lifestyle attractions. Many new residents are moving from countries affected by inflation, rising living costs, excessive taxation, and concerns over personal safety and happiness. These are the main drivers of demand in Dubai.

We are positioning ourselves in the mid-market prime sector, where we see the highest demand. We deliver highquality residences that exceed buyers’ expectations, developing outstanding premium residential communities with competitive pricing in prime locations. Our communities are designed with tenants’ comfort and convenience in mind, offering excellent amenities that cater to the whole family.

EMAD SALEH

FOUNDER AND CHAIRMAN

AMWAJ DEVELOPMENT

Your project, Starlight Park, offers many amenities, including rooftop pools, fitness studios, and children’s play areas. How important are these amenities for today’s real estate buyers in Dubai, particularly families?

Amenities in a residential community are crucial to the happiness and wellbeing of its tenants. Most home buyers seek conveniences and comforts within walking distance of their homes, making it essential for developers to create a range of amenities that cater to the entire family. Tenants prefer not to drive for fitness, entertainment, or relaxation; they want these comforts within their living premises.

At Starlight Park, we’ve aimed to create an environment where tenants can enjoy the best of everything within their building. Although it’s a four-building community, each building has its own set of dedicated amenities, ensuring availability without overcrowding the facilities.

Each building features its own roo top pool, gym, roo top cinema, indoor/outdoor kids play areas, yoga and boxing studios, padel tennis, and a resident’s lounge. This not only ensures that amenities are available to all family members but also promotes peace of mind and tranquility, which are fundamental for families.

AMWAJ Development aims to have over 1.5 million square feet in planned developments in 2024. Tell us about your future projects.

We are expanding in Dubai, the UAE and other regional markets. Dubai, in particular, o ers prime investment opportunities. We already maintain a land bank in prime areas and are continuously acquiring new plots that reflect our vision for better living.

Our expertise, drawn from our development experience in the region and Europe, uniquely positions us. This year, we are positioning ourselves as a luxury mid-market developer, specifically in the Meydan area, where we own several plots.

Our development pipeline includes over 1.5 million square feet of new residential projects in 2024 and over two million square feet in construction next year. We are on a mission to redefine the luxury mid-market segment.

Beyond amenities, how is AMWAJ Development redefining the midmarket residential segment in Dubai? What sets your developments apart from existing offerings?

We are creating innovative and ecofriendly communities that set new standards in delivering affordable living spaces with high-quality finishes and materials, o ering a high level of comfort and style.

As a developer, our journey with the home buyer starts when the unit is purchased and continues throughout the building’s lifecycle. This demonstrates our long-term commitment to the home buyer’s comfort and peace of mind.

A ter the handover of the unit, we remain at the disposal of tenants for maintenance requirements and for personalised design services to upgrade the interiors. Our facilities management team will maintain the building facilities and management, take care of the hygiene and landscaping as well as manage building security and tenant safety.

AMWAJ Development offers aftersales services such as maintenance and interior design. How will these services enhance the resident experience at Starlight Park?

Our journey with the home buyer goes beyond the delivery of the unit and extends through the experience of living at Starlight Park.

A ter handover services enhance the quality of the units and the building as a whole, which protects and increases the property’s value. Our facilities management team will maintain the building facilities and management, take care of the hygiene and landscaping as well as manage building security and tenant safety. This provides a high level of confidence that the work is being carried out by professionals who were behind the building’s development, ensuring the highest standards and continuity in quality.

SOLID FOUNDATION

WELL-KNOWN DUBAI-BASED DEVELOPERS SHARE INSIGHTS INTO KEY TRENDS SHAPING THE OFFERINGS OF DUBAI’ S REAL ESTATE SECTOR

Q& FACTORS DRIVING A SHIFT IN CONSUMER PREFERENCE BETWEEN OFF-PLAN

APROJECTS

AND READY-TOMOVE-IN PROPERTIES

In recent years, we’ve observed a notable shift in con sumer preference towards off-plan projects within the UAE real estate market. Several factors are driv ing this trend. Off-plan properties offer buyers the opportunity to purchase at lower initial prices compared to ready-to-move-in properties, making them attractive for investment purposes. Additionally, off-plan projects provide flexibility in terms of payment plans, often allowing buyers to spread payments over the construction period.

CHAIRMAN AND CEO

GULF LAND PROPERTY

As Gulf Land Property Developers, we strategically focus on launching off-plan projects for their diverse advantages. Off-plan projects offer significant flexibility

Hin design and customisation, allowing buyers to customise finishes and fixtures to their specific tastes and preferences where applicable. They also provide valuable market insights into consumer demands, enabling us to refine our offerings to better meet market expectations. This early engagement not only strengthens our market position but also enhances return on investment for our customers, particularly investors seeking financial gains. The extended timeframe for marketing and brand development associated with off-plan projects further reinforces our commitment to delivering exceptional value and meeting the evolving needs of our clientele in the Gulf region.

RAMJEE IYER

CHAIRMAN AND MD

ACUBE DEVELOPMENTS

ome buyers are looking for several factors when purchasing a new home. Location and accessibility to various parts of the city are fundamental.  Another key factor is the size of the spaces of the unit with most buyers looking for well-designed, spacious homes that they can grow in with their families.

Amenities are also an important factor as buyers want to have all the facilities for exercise, health and wellbeing conveniently available within their community.  We are responding to this need by offering over 50 unique

KEY TRENDS SEEN AMONG BUYERS AND INVESTORS

amenities at our latest development, Electra.  We see this trend continuing for the foreseeable future and have even appointed an international theme park consultancy to help create and design exciting amenities that cater to the needs of the entire family.

Other important factors include sustainable features like smart lighting and water-saving fixtures which have a positive environmental impact but also reduce utility costs for residents. Smart Home technology is also key as it creates convenience for the tenant and adds a touch of luxury to any home.

SHAHER MOUSLI

Q&

AKEY TRENDS SEEN AMONG BUYERS AND INVESTORS

The modern real estate customer has become very discerning. They now expect spacious layouts with well-designed living areas, including open floor plans, ample storage and functional spaces.

A very recent trend has been the demand for home office areas, with so many people working at least partly remotely.

Eco-friendly features such as energy-efficient appliances, green building materials, and water-saving fixtures are also increasingly important in this era of sustainability – while smart homes with integrated automation, such as smart lighting, security

The coming two or three years hold great promise for developers in Dubai and the UAE. This growth is not sudden but the culmination of years of dedicated efforts by the UAE government and society. They have successfully created a welcoming international environment, fostering open competition, security, and a tax-friendly landscape. These factors have collectively propelled economic growth, particularly in the real estate market. We are proud to contribute to and participate in this development journey for the nation and its society.

For medium-sized developers, there are abundant opportunities. The development process is multifaceted and creative, with no singular approach to success. Just as Gaudi’s unique buildings in Barcelona are not

YOGESH BULCHANDANI

FOUNDER AND CEO

SUNRISE CAPITAL

systems, and climate control, are also in demand for added convenience.

As ever, proximity to schools, hospitals, shopping malls, and parks, along with access to amenities like gyms, pools, and community spaces, are prized.

I would also say consumers have become more savvy about quality construction and are doing their research on a developer’s reputation.

At Sunrise, we adopt a truly holistic approach to project development and take pride in delivering homes that appeal to all the above concerns – especially when it comes to eliciting a sense of seamless community and individual wellbeing.

OUTLOOK FOR THE REAL ESTATE MARKET OVER THE NEXT TWO TO THREE YEARS

the most efficient but highly successful, we view building development as creating art. There are countless styles and approaches, each with its potential for success. Medium-sized developers must find their unique style, niche, and clientele.

Following trends, such as developing communities rather than individual buildings and branded residencies, can provide initial advantages. However, to achieve long-term success, all project details must be meticulously implemented. Peak Summit’s strategy involves launching new projects in the central parts of welldeveloped districts and acquiring large plots to control the quality and design of the community. This approach ensures additional benefits for our residents.

SERGI VORONOVYCH CEO

PEAK SUMMIT

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