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European buyers relocating families to Dubai spur realty rebound

 

 

 

 

 

 

European buyers, mostly end-users relocating their families to the relative safety of Dubai, have been driving a significant rebound in the emirate’s property sector as prices hit an eight-year high, recording a 10 per cent year-on-year jump in June.

 
 

A report by Property Monitor, a leading property portal, said European buyers emerged as “a key demographic recently, driving sales with most being end users.”

“Based on our conversations with brokers and industry experts, the motivation here is the relocation of entire families from Europe as opposed to the sole breadwinner living in Dubai. As further evidence of this trend, several schools have reported an uptick in enrolments of new residents,” said the report.

“What we’re seeing here is an evolution... where people are buying homes to live in after renting for a few years, then going on to sell those homes and upgrade to larger properties, creating a mature property cycle,” Lewis Allsopp, CEO of Allsopp & Allsopp, the estate agency, said.

In June, Dubai’s resilient property market maintained its resounding recovery, with a 2.1 per cent price spike, the eighth successive monthly surge as transaction numbers recorded their best performance since December 2013 with 6,389 deals recorded, said the portal.

Median prices in June were Dh928,848 for apartments, Dh1.7 million for townhouses and Dh3.4 million for villas.

“On a monthly basis, prices spiked 2.1 per cent and now stand at Dh924 per sq ft. They were last seen at these levels two years ago. Since bottoming out in November 2020, property prices have risen by 12.7 per cent,” said the report.

“The recovery still remains uneven between communities with the strongest price increases seen in the market for villas and traditionally sought-after communities. However, we expect the recovery to balance out over the rest of 2021 and switch to a more tenable pace across Dubai,” said the report.

According to Dubai Land Department data, the Dubai property market recorded Dh68 billion worth of deals) in the first 53 days of the year. For the full year, the projections are for Dh300 billion plus.

Demand continues to remain robust for properties at the top end of the market with transactions for properties valued over Dh10 million registering yet another strong month.

In all, 111 transactions were recorded for this segment in June, slightly lower than the 117 in May, but still indicative of a buoyant market.

On a monthly basis, sales jumped 43.7 per cent and climbed a massive 174 per cent from last June when buyers were first taking notice of attractive real estate deals amid easing movement restrictions.

“A block of delayed registrations in June for previous months was recorded from Azizi Developments, including off-plan and initial sales from the developer. While this was a notable contributor to the rise in sales volumes this month, even without these deals, June recorded one of its best performances for transactions since at least 2009,” said the report.

A total of 2,419 off-plan transactions were registered in June, up 43.3 per cent on a monthly basis. Completed properties took 62.1% market share in June 2021 versus 37.9 per cent for off-plan, continuing a year-long trend as new launches stalled, and buyers demonstrated a preference for ready-to-move properties.

However, completed property transactions may start to give up some of these market share gains as new project launches gather pace. Meanwhile, initial sales transactions—the first sale of a property from the developer for an off plan or completed project—jumped 51.2 per cent monthly to stand at 3,800 in June.

Mortgages for villas and townhouses increased month-on-month while loans for apartments declined, reflecting buyer preferences. Overall, at 2,135, new loans for June fell by 9.4 per cent over the previous month, driven by a decline in bulk mortgages, which are primarily taken out for apartment buildings. 

 
 

Source:www.khaleejtimes.com

 

10 good reasons for businesses to migrate to Dubai

 

 

 

 

 

 

One of the key takeaways from recent Ritossa Family Office Investment Summits in Dubai is the large number of entrepreneurs who have either moved their business and residence here or who plan to in the coming year. Interestingly, 50+ percent of the Summit attendees not currently based in Dubai indicated an interest in exploring relocation to Dubai in the next three years. This statistic is impressive considering the fact that the audience included business leaders, entrepreneurs, and private investors representing $4 trillion in wealth who are equipped to bring jobs and expertise to Dubai.

Despite the challenges the world faced in the past year, during which foreign direct investment declined globally by 42 per cent (from $1.5 trillion in 2019 to $859 billion in 2020), Dubai succeeded in attracting high volumes of FDI. This is a testament to our economy’s resilience and stability.

While it’s great news — and no secret — that Dubai’s economy is booming, start-up companies also cite Dubai’s reputation for safety, availability of quality education, ease of transportation, advanced healthcare systems evidenced by its ability to manage the coronavirus pandemic quickly and effectively, and tax structures as key reasons for their decision to relocate. CIO World Magazine reported in April that, “The UAE ranked first in the Arab world and the 31st in the world in the ranking of the most-friendly countries for emerging companies according to its annual assessment of the competitiveness of countries and their capabilities in an economy based on science and technology. The UAE scored 62 points on the general index, outperforming Greece, Norway, New Zealand and Indonesia.”

According to Fahad Al Gergawi of Dubai FDI, “Success is achieved when everyone is moving forward together with the understanding that ‘We are all responsible.’ Our leadership’s constant and proactive focus on FDI has ensured that Dubai and the UAE’s policies and regulations continue to be in line with international best practices that investors appreciate and expect. In turn, increasing FDI flows have improved prosperity and quality of life for all residents and is one of the cornerstones of the country’s economic development. Our policymakers recognized the need for quick action early on during the COVID-19 pandemic and ensured that the strategies implemented to deal with the situation took care of all aspects – from the well-being of our residents as well as the economy. Stimulus measures were identified and announced to enable sustainable business and economic growth. The Dubai Government alone announced stimulus measures worth Dh7.1 billion.”

 

Examples of companies relocating to Dubai include an impressive number of companies leading the way with sophisticated technology, artificial intelligence, biotech and medicine, solid waste solutions, safe and sustainable food, fintech, and more.

One high profile example is Icecap, which  involves the intersection of diamonds and blockchain. Founder Jacques Voorhees was impressed with Dubai during his early career visits but it was not until he visited in 2020 for a Ritossa Summit that he realised how Dubai had transformed into a true global capital.

“I had no plans to relocate Icecap to the UAE yet I was beginning to notice things. The Abraham Accords were allowing close interaction between Dubai and Tel Aviv, another center of the diamond trade. I learned that De Beers, the largest diamond mining company in the world, had recently relocated its every-five-week “Sights” (where they sell their rough diamonds) to Dubai, from Africa.  Over 90 per cent of the diamonds in the world are actually cut in India, which is a simple two hour flight from Dubai.  With De Beers here, all the primary diamond companies here, India right next door, and the world-class infrastructure needed to support the global diamond market already built, it was obvious that Dubai really had achieved its goal of becoming the center of the diamond industry.  When I returned a few months later for another Ritossa conference, I began to realise UAE was equally trying to become a leader in the blockchain space as well.  It even had a Minister of Blockchain.  It’s probably the only country in the world that has an entire ministry devoted to this technology,” Voorhees said.

Other businesses relocating to Dubai include: Cash Angel, a visionary investment company that re-located the CEO’s residence and the entire business from Paris to Dubai; The Tsangs Group, a leading family office based in Hong Kong; Platon Finance, a blockchain company; Cahero Holding, a real estate company; and The Bank of Nevis, to name just a few. Bitcoin Association, the global industry organization supporting the BSV blockchain, is even launching a Dubai-based hub for the Middle East and South Asia and views Dubai as an appealing business destination.

“The BSV blockchain is enterprise-class and meant for the large-scale applications, such as smart cities or delivering e-government services to an entire emirate or nation. Government ministries in Dubai and the UAE are serious about implementing blockchain applications at large scale, and we want to partner with them,” said Jimmy Nguyen, Founding President of Bitcoin Association.

“As an investor you look for the value-added of any proposition and with Dubai it’s the audacity of the proposition that energises you. Dubai is that unique global meeting point whose credentials continue to shine bright in this global pandemic. It’s safe and its first mover response to the pandemic has been some of the best in the world. It’s no longer the place just to buy an apartment for occasional use or as a modest protector of wealth but Dubai has evolved and the new narrative sees Dubai as being truly a global center for the incubation of ideas, access to liquidity, and a place that embraces new technology to underpin a holistic lifestyle. Create an environment where human capital can flourish and you build the sustainable life for the future. We travelled 7,000 plus miles to Dubai to establish our first international office because we understand the audacity of the proposition that is Dubai and see it as that unique confluence where all peoples of the world meet and where ideas and opportunity can readily percolate,” said Bank of Nevis Chief Executive Officer Michael J. Prest.

Booming Economy

The economy in the UAE remained strong despite the pandemic. Tourism, for example, was among the fastest in the world to recover.

“The UAE is envisioning the future beyond the Covid-19 crisis and we are working toward doubling our economy by 2030. Apart from benefitting from an array of incentives and latest law amendments related to full foreign ownership, bankruptcy, commercial companies and long-term residencies/citizenship, investors, entrepreneurs and creative minds can also capitalize on the country’s state-of-the-art infrastructure, superior connectivity and its highly evolved ecosystem of incubators, accelerators and investors. And yet, these are only few of the factors that make the UAE the bustling global trade and investment hub that it is today,” said Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.

Business Friendly Tax + Regulatory Structures

Interestingly, many of the entrepreneurs who select Dubai as home base are expats from the United States, United Kingdom, Switzerland, France, and other high-tax cities and countries. In Dubai, earnings are tax-free although it is essential to understand the tax requirements of every individual’s home country. Many also cite Dubai’s regulatory landscape as being desirable as they tend to prefer self-regulation. There are 38 free zones in the UAE that offer tax exemptions on withholdings, export, corporate and personal income as well as corporate tax exemption for 50 years from the date of the company’s formation.

“It was the tax and regulatory landscape that really made the decision to move to Dubai easy.  Our lawyers in the United States were very clear that not only were the tax issues problematic, but the regulatory landscape for NFTs and anything involving both blockchain and diamonds, was subject to change at most anytime.  That makes it very difficult to build a business.  You need a stable foundation.  You can’t build a new company on regulatory quicksand.  Meanwhile in Dubai, they’d already decided how NFTs were being handled and, with free zones like DMCC, all the tax problems went away, “ added Voorhees.

Gateway for innovation

As a gateway for innovation, Dubai meets the needs of aspiring startups, with impressive multinational design centers, high-tech startup hubs, and strategic partnerships. “We count on our private sector partners who continue to work with us on strengthening our economic model to achieve our goal. To make this journey as effortless as possible for them, we are constantly enhancing the openness of our economy and liberalising various sectors in line with the UAE’s strategic priorities and directions,” said Al Zeyoudie

Strong Leadership and government

Dubai’s current position as a global hub is due largely to strong leaders such whose vision led to Dubai’s rise. Today, international businesses are interested in Dubai due to strong government support of SMEs. Specifically, Dubai’s Smart City 2021 initiative is transforming the city, revolutionising the way government services are delivered, promoting private sector partnerships, increasing happiness, and attracting more interest in the region. Expo Dubai 2021 is another exciting milestone for the UAE that will draw worldwide acclaim as well as boost domestic travel which already expanded during Covid. With 180 nationalities in the UAE, its position as a global melting pot is admirable.

Ease of Residence Visas

To make it easier for businesses to relocate to the Emirates, the UAE announced in 2019 the availability of Golden Visas, long-term residence visas that allow business owners and their employees to live and work here without the historical requirement of having a sponsor. These visas are issued to qualified individuals and their families for 5 or 10 years, renew automatically, and offer 100 per cent ownership of one’s business, which differs from the historical requirement that a company outside the free trade zone have a local partner with at least 51 per cent ownership. The intent is to make the UAE more attractive to business professionals, especially start-ups and entrepreneurs.

Infrastructure and Transportation

Dubai boasts one of the best public transportation systems in the world, including excellent Metro and Bus options, and the Dubai International Airport (DXB) supports 100+ airlines and 260+ destinations worldwide. DXB is the world’s largest and fastest growing passenger and cargo hubs and the #1 airport for international passengers according to Airports Council International.6

Quality Educational Options

Dubai has 200+ private schools for ages 6-18 that provide a high quality of education for more than 300,000 students. Private schools serve 90 per cent of the population and include mixed gender classrooms while the public school classrooms are separate for boys and girls. University-level education is free for citizens and there are a number of training and vocational schools as well.

Healthcare That Leads the World

Dubai has a great health system that offers a high standard of care in top notch facilities under the supervision of The Ministry of Health and Prevention. Of note are the government’s four hospitals - Dubai, Rashid, Latifa and Hatta; however, there are a total of 40+ hospitals throughout Dubai. Dubai citizens have access to free healthcare and employers are required to provide insurance to their employees.

Healthy Lifestyle Options Abound

There is no shortage of ways to maintain a healthy lifestyle in Dubai. Picturesque beaches, fabulous cuisine, bustling streets ideal for walking, and a reputation as a sports mecca all combine to keep Dubai residents and guests fit and in shape. Skiing, polo, soccer, cricket, tennis, cycling golf, basketball, camel riding and football lead the list of popular sports options.

The Happiness Factor

An important goal of the Dubai government is to make Dubai the happiest city on earth, which is being accomplished via programmes and innovative intended to meet the needs of visitors and residents on an ongoing basis.

Dubai continues to launch new strategies and policies that further re-enforce investors’ confidence that tap into its unique value proposition as the City of the Future, the gateway to regional markets, and a global hub for trade and investment. It is the preferred location for the regional headquarters of multinational as well as regional corporations. Startups too find Dubai a dynamic and supportive environment in which to test, finance, and expand business models. They benefit from Dubai’s world-class physical, social, and business infrastructure to reach billions of consumers in the Middle East and North Africa, South Asia, and CIS regions.

In summary, Dubai’s prominence as a global powerhouse is strong and will continue to strengthen in the coming years. Stay tuned for more developments as its influence on the world stage expands.

Sir Anthony Ritossa is chairman of Ritossa Family Office. Views expressed are his own and do not reflect the newspaper’s policy.


Source:www.khaleejtimes.com

 

Dubai: A post-pandemic investment destination for Indians

 

 

 

 

 

 


Source:www.constructionweekonline.in

 

Consumer confidence in Dubai hits 10-year high

 

 

 

 

 

Consumer confidence in Dubai zoomed to its highest level in 10 years in the second quarter of 2021, underscoring the growing momentum of the emirate’s broader economic recovery on the back of buoyancy in tourism and real estate sectors as the vaccination drive made remarkable headway.

 
 
 

The second quarter saw consumer optimism in Dubai surging to 151 points, the highest level since 2011, from the 125 points recorded in the same 2020 period and 145 points in Q1 2021, according to the quarterly Consumer Confidence Index of Dubai Economy.

“The latest Consumer Confidence Index, which shows remarkable improvements in consumer perceptions in Dubai during the second quarter of this year, reflects the growing momentum of broader economic recovery,” said Mohammed Ali Rashid Lootah, CEO of the Commercial Compliance & Consumer Protection Sector atin Dubai Economy.

“For example, 75 per cent of consumers were positive on jobs, compared to 32 per cent in the same period in 2020. Besides, 91 per cent of consumers were also optimistic about finding a job in the next 12 months, compared to 75 per cent in the same period last year.

Among those confident of finding a job, 81 per cent fall in the 40-49 age group,” Lootah said.

Consumers were also positive about their current personal financial conditions as 81 per cent of them expressed confidence, compared to 57 per cent in the same period in 2020. Those looking forward to improvements in their personal finance over the next 12 months constituted 85 per cent in Q1 2021, compared to 73 per cent in Q1 2020. Consumers in the 50-59 age group make up 88 per cent of those optimistic of an improvement in their personal finance, Dubai Economy said in a statement.

Along with the soaring consumer confidence, Dubai has been recording a resounding jump in investor trust in the wake of a wave of reforms and stimulus measures rolled out during the pandemic. A 44.2 per cent foreign direct investment surge to Dh73 billion in 2020 year-on-year, is a testimony to the UAE’s growing appeal to global investors.

The recovery seen in tourism and commercial traffic as well as an increase in advertisements appeared to be the factors driving positive perceptions on the economy

 


Source:www.khaleejtimes.com

 

Finance & Capital Market Real estate 'driving Mideast economic recovery momentum'

 

 

 

 

 

Finance & Capital Market

Real estate 'driving Mideast economic recovery momentum'

The Middle East region's economy is recovering relatively well, but is slower than the global average, with hard hit sectors like tourism and aviation still under strain, while real estate recovery is accelerating, according to a new report by PwC, a leading assurance, advisory and tax services firm. 
 
With the pandemic continuing to challenge different economic sectors across the region, PwC in its latest edition of the Middle East Economy Watch, points to signs of building momentum in the recovery despite a third Covid-19 wave this spring. 
 
The pandemic caused the world's worst global recession since the second world war, with deep contractions across the region. This was partly because of sharp cuts in oil production as lockdowns caused demand to drop substantially. 
 
Even the non-oil sectors such as travel, tourism, real estate, retail, wholesale trade and manufacturing contracted by considerably more than the global average, due to the various lockdown measures across the region and the decline of global demand.
 
The region witnessed another wave of Covid-19 this spring. Nevertheless, there were signs of solid economic recoveries underway during this period, stated the report. 
 
Saudi Arabia is the first economy to release data showing a very strong rebound in non-oil GDP. Also, other indicators have shown a recovery in consumption across the region. 
 
Global recovery is shaping up to be even stronger than anticipated earlier in the year, and is now expected to reach pre-pandemic output levels by this autumn. Meanwhile, the slower regional growth is partly because OPEC+ is only tapering its cuts gradually and so, the oil sector growth is seen as lagging the non-oil rebound. 
 
Forecasts for the region expect a return to pre-Covid levels of output around the middle of 2022 and some GCC countries, such as Iraq and UAE, will not get there until 2023, said PwC in its report. 
 
However, oil demand has been beating expectations, causing a surge in prices, meaning that OPEC+ might increase production quotas earlier than initially anticipated which, if implemented, should accelerate the return to pre-Covid levels of economic activity, it added.
 
According to the report, some vulnerable sectors such as tourism and aviation suffered severely due to the lockdown measures. 
 
The World Travel and Tourism Council estimates that the sector’s overall contribution to global GDP nearly halved in 2020. Due to travel bans, In Lebanon, the visitors' numbers fell to nearly zero making the sector contracted by four-fifths in 2020. Other countries such as Saudi Arabia, Qatar, Kuwait and Libya witnessed proportionally a smaller decline.
 
Aside from tourism, GCC countries, particularly the UAE and Qatar, were significantly affected by the collapse in global aviation. Emirates airlines showed a major decline in passenger numbers, resulting in a $5.5 billion loss. 
 
While Qatar Airways retained the largest network of any airline during the pandemic, only reducing its weekly flights by just over a half. 
 
Meanwhile in the real estate sector, lockdowns also made the process of trading property more difficult due to oversupply with weaker demand across the GCC. However, Dubai has been posting a steady rebound this year and Qatar is starting to recover by seeing an uptick in March, stated the PwC report. 
 
Due to their upcoming events, Expo in Dubai starting in October and the World Cup a year later in Qatar, the chances of boosting the real estate sector are highly promising. 
 
Also, in Saudi Arabia, real estate was one of the strongest sectors during Q1 and in Kuwait, real estate has spotted significant growth due to approving a draft law for residential mortgages, it added.
 
Richard Boxshall, Partner, Chief Economist at PwC Middle East, said: "It’s been over a year since the start of the pandemic, and the “return to normal” always seems to be just a few months away, but keeps receding. However, leading economic indicators now provide a good reason to think that the destination will soon be reached."
 
"Saudi Arabian residents are now shopping more frequently than in February 2020. Also, real estate prices in Dubai are seeing the most sustained increases since 2014 which is considered one of the benchmarks of regional confidence," remarked Boxshall. 
 
"And the purchasing managers indices, reflecting private sector activity, in the GCC have all signalled expansion this year," he added.
 
While the GCC is still recovering from the pandemic contractions, the region might face other challenges in the future due to the OECD/G20’s Inclusive Framework on BEPS to reform the global corporate tax policy. 
 
This could have implications on the GCC countries, which have among the lowest corporate tax rates globally. 
 
Boxshall pointed out that the impact of new rules on the GCC will depend very much on the details agreed.
 
"If they remain limited to the largest multinationals, few changes may be needed. In fact, a limited policy could fit with efforts to boost non-oil revenue in the region,"

 


Source:www.khaleejtimes.com

 

Dubai property market continues to rebound in Q2 as villa values soar

 

 

 

 

Villas continued to drive the recovery in Dubai real estate prices during the second quarter of 2021, according to consultants ValuStrat.

Its ValuStrat Price Index, which has been expanded to cover more locations in the city, grew by 3.8 percent during the April to June period compared to the previous quarter.

This increase cancelled almost all the capital losses of the previous year, ValuStrat said in a statement on Saturday.

It added that in June the index registered 69 points compared to 69.4 points in the same period last year.

Despite the recent rebound, there is still a long way to reach 100 points registered as of January 2014, not to mention the peak of June 2014 which saw the citywide VPI achieve 112.9 points.

 

Villas, which represent 13 percent of the residential market in Dubai, spearheaded the Q2 growth with a quarterly growth of 7 percent and an annual growth of 6.3 percent.

ValuStrat said all villas monitored by the basket saw improvements not seen since 2014. The highest annual capital gains were found in The Meadows, Arabian Ranches, The Lakes, Jumeirah Islands, Dubai Hills Estate and Mudon.

Quarterly, the apartments VPI grew 1.7 percent but did not perform as well as villas on an annual basis, still declining 4.8 percent when compared to Q2 last year.

Jumeirah Beach Residence, Palm Jumeirah, Downtown Dubai and the Views where the best quarterly performers.

ValuStrat said that compared to last year apartments in International City, Palm Jumeirah, Jumeirah Beach Residence, Al Furjan and Al Quoz Forth have written off their capital losses of last year.

The VPI for Dubai residential capital values has expanded to cover 95 percent of the freehold market as the city has seen new locations become established and start to influence the overall real estate performance.

Three more villa areas and five more apartment locations have been added to the fixed basket of properties that its team of valuers appraise each month.

Villa locations are Dubai Hills Estate, Mudon and Green Community (DIP) have been added while, for apartments, Dubai Silicon Oasis, Al Furjan, Dubailand Residence Complex, Town Square and Al Quoz Fourth (Al Khail Heights) have been added.


Source:www.arabianbusiness.com

 

Dubai's villa market posts its best performance since 2014: ValuStrat

 

 

 

 

 

Dubai’s villa property market has posted its best performance in about seven years, as demand for residential space continues to drive sales prices. 

The citywide price index by consultancy ValuStrat, which tracks price movements of villas and apartments across the emirate, went up by 3.8 percent during the second quarter of 2021, writing off almost all the residential capital losses of the previous year. 

 

The growth was led by the villa segment, which showed an annual increase of 6.3 percent and a quarterly increase of 7 percent, the highest since 2014. The highest annual gains were recorded in The Meadows, Arabian Ranches, The Lakes, Jumeirah Islands, Dubai Hills Estate and Mudon, the report said. 

According to Haider Tuaima, head of real estate research at ValuStrat, increased demand for high-end villas within well-established and well-connected villa communities is driving prices higher. "These are in limited supply and at very attractive price points when compared to previous peaks. COVID-19 work-from-home lifestyles and attractive finance options fueled this demand even further. This has led to competitive bidding in some pockets," Tuaima told Zawya.

Demand for properties in Dubai has picked up since coronavirus restrictions eased last year, partly driven by record-low prices, interest rates and attractive loan-to-value ratios of up to 85 percent. 

During the month of May alone, a total of 4,429 property deals worth 11.11 billion dirhams ($3 billion) were made, the highest since March 2017. 

According to Dubai-based listings portal Property Finder, the total transaction value in Dubai’s real estate market has recovered by more than 324 percent since the COVID-19 lockdown last year, indicating that the market has rebounded. 

Apartment market 

Most of the buyers, however, prefer secondary homes and villa units. 

ValuStrat’s latest data showed that the apartment market in Dubai has remained subdued, posting only a 1.7 percent increase when compared to the previous quarter, and a 4.8 percent decline when compared to the same period in 2020. 

Among the locations monitored, Jumeirah Beach Residence, Palm Jumeirah, Downtown Dubai and the Views showed the best performance. 

“This is contrasted with Jumeirah Village, Dubai Marina, The Greens and Dubai Production City. However, compared to last year, apartments in International City, Palm Jumeirah, Jumeirah Beach Residence, Al Furjan, and Al Quoz Forth, have written off their capital losses of last year,” ValuStrat said. 

 

 


Source:www.zawya.com

 

Dubai property market flourishes, realty deals hit Dhs4.5b

 

 

 

 

The Dubai property market is gaining momentum as the City of Wonders emerges from a COVID-19 induced slowdown bucking the global trends.

A total of 2,020 real estate and properties transactions were valued at Dhs4.5 billion in total during the week, according to Dubai Land Department (DLD).

The DLD weekly report said 119 plots were sold for Dhs 845.1 million, 1,321 apartments and villas were sold for Dhs 2.25 billion.

It noted that the top three transactions were a land in Marsa Dubai sold for Dhs125 million, followed by a land that was sold for Dhs57 million in Al Thanayah Fourth, and a land sold for Dhs 125 million in Marsa Dubai in third place.

Al Hebiah Third recorded the most transactions for this week by 20 sales transactions worth Dhs 61.81 million, followed by Hadaeq Sheikh Mohammed Bin Rashid with 14 sales transactions worth Dhs 139.68 million, and Jumeirah First with 14 sales transactions worth Dhs 106 million in third place.

The top three transfers for apartments and villas were an apartment was sold for Dhs 298 million in Marsa Dubai, an apartment was second in the list sold for Dhs 264 million in Al Merkadh, and thirdly it was an apartment sold for Dhs 233 million in Palm Jumeirah.

The sum of the amount of mortgaged properties for the week was 1 billion, with the highest being a land in Al Goze Fourth, mortgaged for Dhs 139 million.

124 properties were granted between first-degree relatives worth Dhs 230 million.

In its latest forecast, rating agency S&P Global also shared positive remarks on Dubai real estate and forecast more than 30 per cent revenue growth in 2021 on supportive market trends for real estate and a gradual recovery in other business segments.

“We expect Dubai’s GDP to rebound about 3.5 per cent in 2021, followed by growth of 2.5 per cent in 2022,” S&P analysts said.

“While we think that structural oversupply in Dubai’s residential real estate sector will linger, we think that demand for good-quality, premium assets will support sales in 2021. We expect 30 per cent to 35 per cent revenue growth in 2021, from high demand for residential real estate in Dubai and recovery in other business segments, namely the retail and hospitality sectors,” they added.

Meanwhile, under the patronage of the Egyptian Ambassador to the UAE, Sherif Mohamed Fouad Al-Badawi, a UAE property developer is organising a special sales day at the Sofitel Abu Dhabi Corniche Hotel on Saturday.

The event includes the launch of “Reportage Properties” a special offer that includes a 10% discount on the company’s projects in the UAE, and 15% on the “Montenapoleone” project in Egypt, upon the buyer’s payment of a 10% as down payment.

Islam Ahmed Suleiman, CEO, Reportage Properties said that the economic and trade relations between the UAE and Egypt are a model to be followed for Arab and regional state relations, that is evident in the continuous increase in joint investments between the two countries.

Suleiman stressed that the recent launch of the “Montenapoleone” project, which is their first project outside the UAE, reflects the stability and strength of the company’s financial position, and its ability to develop more new projects inside and outside the UAE. He noted the strong demand on the residential units in the project from the majority of investors, especially in light of the positive developments witnessed by the Egyptian real estate sector in recent years.

Suleiman pointed to the fact that Reportage is interested in making many special offers, especially during sales events, which is well responded to by buyers, in light of the diversity of offers that suit large segments of customers.  

Reportage Properties is developing 11 projects , providing about 5,000 housing units in the UAE, in addition to the Montenapoleone project, which the company recently launched in Mustakbal City in New Cairo, Egypt, and will be developed in cooperation with Al Ahly Sabbour, the leading developer in Egypt.

The”Montenapoleone”,which  will be built on an area of 465,000 square meters, and include 5,500 housing units, is the first “Reportage Properties” project outside the UAE.

Source:www.khaleejtimes.com

 

Dubai real estate back in demand; prices to go up

 

 

 

The Dubai real estate market is gaining momentum as the emirate emerges from a Covid-19 induced slowdown and will stage a strong rebound in second half due to stimulus packages, visa reforms and strong demand from end-users and investors, experts say.

 
 

Leading developers, executives and analysts said residential segment has already bottomed out and offers good opportunities for developers on premium properties. They said prices for villa and townhouses have already registered an upward trend in past seven months and apartments prices are also expected to reflect the stable trend in second half.

“The outlook is bright. It’s not merely an assumption, but based out of rationales. In my opinion, the recovery was overdue, and it has only got boosted with how the Covid-19 crisis has been handled in Dubai,” Atif Rahman, director and partner at Danube Properties, told Khaleej Times on Monday.

New investors

Referring to latest data, he said entry of 8,000+ new investors into the Dubai property market during the first half despite the fact that the international travel and migration are at their lowest due to Covid-19 restrictions.

“This is due to the first-class infrastructure built by Dubai; the strength and resilience of which has been wonderfully demonstrated during a global crisis. Dubai goes beyond tourism, leisure, and lifestyle; it’s a stable economy supported by constant improvement initiatives from the visionary leaders and the government bodies,” he said. “Look at the most recent announcements such as immigration reforms, trade liberalization and 2040 masterplan, all are focused on making the city and the economy better for its people. Now all of this attracts fresh FDI and immigrants leading to surge in population, which increases the domestic consumption.

“The benefits will be enjoyed by all industries but surely impacts the most for Real Estate, Retail and Banking industry ahead of others. Add to all of this, the increased impact of Expo2020 that shall be delivered later this year,” Atif elaborated.

30%+ revenue growth

In its latest forecast, rating agency S&P Global also shared positive remarks on Dubai real estate and forecast more than 30 per cent revenue growth in 2021 on supportive market trends for real estate and a gradual recovery in other business segments.

“We expect Dubai’s GDP to rebound about 3.5 per cent in 2021, followed by growth of 2.5 per cent in 2022,” S&P analysts said.

“While we think that structural oversupply in Dubai’s residential real estate sector will linger, we think that demand for good-quality, premium assets will support sales in 2021. We expect 30 per cent to 35 per cent revenue growth in 2021, from high demand for residential real estate in Dubai and recovery in other business segments, namely the retail and hospitality sectors,” they added.

Market resurgence

Zhann Jochinke, chief executive of Property Monitor, said Dubai real estate market has witnessed a resurgence with prices appreciating slightly more than 10 per cent over the past seven months.

“Year-to-date 2021 property prices emirate-wide for Dubai have increased 8.3 per cent and I foresee that appreciation will continue through the remainder of the year however expect rate of price increase to slowdown in the coming months,” Jochinke told Khaleej Times on Monday.

A sustainable recovery

To a question about recovery is sustainable, he said: “In short, yes, however at a subdued pace particularly in the resale market of completed properties.”

He said a large driver of the recovery to date has been due to the sale of villa and townhouses in mature communities where end-users were for a time able to find incredible value. “With inventory in these areas becoming scare and prices rising at a rapid pace for prospective buyers who are familiar with the market have begun to pull back and not appease seller’s aggressive expectations.”

He said some of the fringe communities or less popular communities are yet to see overall price appreciation, however the market has begun to show signs of price stability and over the coming months will likely continue to see positive growth.

Regarding the off-plan market, he said a continued recovery will be heavily dependent on the level of new supply being approved to come to market for sale.

“New supply will be organised due to the oversight of Sheikh Mohammed bin Rashid Al Maktoum’s higher committee of real estate [announced in late 2019] and it will be closely monitored and is likely to result in significantly fewer new project launches than in recent years,” he said.

Expo to boost confidence

Nikita Kuznetsov, chief executive of Metropolitan Premium Properties, said the real estate outlook appears positive for the second half of the year especially with Expo 2020 just around the corner. He said the resale market is on an upward trajectory thanks to a steadily growing economy encouraging residents and citizens to move home to bigger and better options.

“We also are seeing more people relocating or investing in a second home here in Dubai or the UAE due to the positive steps taken by the government to battle the Covid-19 pandemic. We have also seen a spike in the number of transactions for villas and townhouses, with a notable interest and high demand in waterfront or shoreline property,” Kuznetsov told Khaleej Times on Monday.

Metropolitan Premium Properties is a full-service real estate agency offering customised solutions to developers, owners and investors who are looking to maximise value from their luxury real estate assets.

“With one of the largest premium property portfolios in the UAE – 20 per cent of our listings cater to properties over Dh10million, we have also seen strong demand for luxury property from overseas investors,” Kuznetsov said.

He said nearly 30 per cent of our transactions last year were from our international clients primarily from the UK and other parts of Europe including France, Germany and Austria and “we expect this trend to continue”.

“Location wise areas such as Dubai Marina, Downtown and Palm Jumeriah are consistently active, as well as the off-plan market showing impressive new projects that sell out at pace,” he said.

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Why people are investing in Dubai real estate

• Safety and security

• Capital appreciation

• Modern-day lifestyle

• Tax-free, stable economy

• Excellent infrastructure

Dubai property is back in demand

* 8,000+ New investors entered into the Dubai property market in H1

* 30%+ Revenue growth for real estate companies in 2021

* 10%+ Increase in Dubai real estate prices since November

* 8.3% Average jump in Dubai properties this year so far

 

Source:www.khaleejtimes.com

 

UAE: Expo 2020 creating thousands of jobs in Dubai, industry experts

 

 

 

 

With a little more than three months to the official opening, the Expo 2020 Dubai will generate thousands of jobs in the UAE market, and give a boost to the economy, according to HR consultancies and industry experts. 

Dubbed the world’s biggest show, the world fair that will be held between October 1 and April 1, is expected to draw millions of visitors to Dubai.

The world flocking to Dubai means more customers to businesses, which will, in turn, encourage them to have more hands-on the deck, especially in the service industries, said HR firms.

“Expo 2020 will impact Dubai’s economy and we are predicting a huge influx of jobs in the region especially within travel tourism, real estate, retail, events and exhibition, technology and software consultancy, marketing and media, engineering, security, logistics, health and safety, procurement and finance and most importantly hospitality,” said Mayank Patel, Country Head Middle East, Adecco a global HR Solutions firm.

“As Dubai already is a business hub for leading industries especially real estate, hospitality and technology, but with Expo 2020 in the vicinity, the attractiveness is set to intensify further,” he added.

The year 2020 was one of the worst years for businesses as they were hit hard by Covid-triggered lockdowns and border closures. Many were forced to lay off people and downsize to survive. With better prospects in 2021 as Dubai gradually reopened thanks to the mass vaccination drive, many hard-hit industries especially travel, hospitality and aviation are bouncing back.

Raj Rishi Singh, Chief Business Officer, GCC, at MakeMyTrip said Dubai Expo – one of the biggest global events post-pandemic with people in physical attendance – will boost jobs in the travel and tourism sector.

“As we countdown to Dubai Expo, we are confident that travel demand will see a spurt in growth during this period.”

He said international travellers are likely to club their visit to the Expo with a short vacation to some of the leisure hotspots across the region.

“In the coming months, as demand returns in full capacity for both, leisure and business travel to the region, we are hopeful that the industry will throw up new work opportunities for a skilled workforce with deep travel and hospitality domain expertise.”

Demand for drivers

With more than 25 million new visits to the city, the demand for transportation is expected to skyrocket. Foreseeing the demand, many companies are already hiring.

A spokesperson for Careem, a car-hiring company said, “We are working with partner companies to have a sufficient amount of Captains available to provide excellent service to Expo visitors.”

Soham Shah, Founder of Selfdrive.ae, a car rental company, said they are looking to add 3000 to 3500 new cars to meet the EXPO demand.

“As an industry, we are looking at a high potential demand for six to nine months or even a year. We are looking at an unprecedented demand for car subscriptions, and once the Expo starts, there will be a potential demand in daily, weekly car rentals too. Overall, we are gearing up to add 3,000 to 3,500 cars during the Expo. We have a roadmap built on that,” said Shah.

He said the company has already started hiring and will be doubling the team to serve the demand they expect.

The entertainment industry gearing up

Events management companies and tour operators have also started hiring ahead of Expo.

“The entertainment and events industry is already in the hiring mode as the industry is getting ready for opening up ahead of Expo 2020. I believe a lot of business conferences, entertainment events will fill up the schedule before the end of summer this year. As a major events organiser, we are getting ready for the largest cinema convention at META Cinema Forum in October to celebrate the success of an industry that will create thousands of jobs across the region,” said Leila Masinaei, Managing Partner of GM Events.

Hemali Shah, managing director of City One Tourism and Travel said Expo 2020 Dubai has changed the economic sentiment of even smaller companies.

“Right now even I am hiring for four different positions to play our small part to be ready for this mega event. The good times are coming back and each one of us will play our part, towards rebuilding the global sentiment, said, Shah.

If the job advertisements on online platforms are any indication, several companies have advertised for ‘Expo jobs’ and are calling in applicants for positions like waiters, storekeepers, drivers, chefs and sales executive to mention a few.

Patel said there is also a high demand for senior-level executive talents such as operations and project managers, drone show managers, senior manager production, guest services managers.

“Companies are also looking to hire mid-level talents such as customer service agents, tour guides, promoters and hostess as well as lower-skilled workforces such as technicians, helpers, cleaners and electricians.”

In addition, thousands of new positions are open as country pavilions are hiring people to man the pavilions. More than 200 participants are taking part and working at many pavilions are almost complete.

 

“Expo 2020 hiring’s have been slowly picking up since the end of Q1 with a majority of the population being vaccinated and declining Covid cases are adding momentum to hiring. We further expect a major increase in employment opportunities in the coming months,” said Patel.

The year 2020 was one of the worst years for businesses as they were hit hard by Covid-triggered lockdowns and border closures. Many were forced to lay off people and downsize to survive. With better prospects in 2021 as Dubai gradually reopened thanks to the mass vaccination drive, many hard-hit industries especially travel, hospitality and aviation are bouncing back.

Raj Rishi Singh, Chief Business Officer, GCC, at MakeMyTrip said Dubai Expo – one of the biggest global events post-pandemic with people in physical attendance – will boost jobs in the travel and tourism sector.

“As we countdown to Dubai Expo, we are confident that travel demand will see a spurt in growth during this period.”

He said international travellers are likely to club their visit to the Expo with a short vacation to some of the leisure hotspots across the region.

“In the coming months, as demand returns in full capacity for both, leisure and business travel to the region, we are hopeful that the industry will throw up new work opportunities for a skilled workforce with deep travel and hospitality domain expertise.”

Demand for drivers

With more than 25 million new visits to the city, the demand for transportation is expected to skyrocket. Foreseeing the demand, many companies are already hiring.

A spokesperson for Careem, a car-hiring company said, “We are working with partner companies to have a sufficient amount of Captains available to provide excellent service to Expo visitors.”

Soham Shah, Founder of Selfdrive.ae, a car rental company, said they are looking to add 3000 to 3500 new cars to meet the EXPO demand.

“As an industry, we are looking at a high potential demand for six to nine months or even a year. We are looking at an unprecedented demand for car subscriptions, and once the Expo starts, there will be a potential demand in daily, weekly car rentals too. Overall, we are gearing up to add 3,000 to 3,500 cars during the Expo. We have a roadmap built on that,” said Shah.

He said the company has already started hiring and will be doubling the team to serve the demand they expect.

The entertainment industry gearing up

Events management companies and tour operators have also started hiring ahead of Expo.

“The entertainment and events industry is already in the hiring mode as the industry is getting ready for opening up ahead of Expo 2020. I believe a lot of business conferences, entertainment events will fill up the schedule before the end of summer this year. As a major events organiser, we are getting ready for the largest cinema convention at META Cinema Forum in October to celebrate the success of an industry that will create thousands of jobs across the region,” said Leila Masinaei, Managing Partner of GM Events.

Hemali Shah, managing director of City One Tourism and Travel said Expo 2020 Dubai has changed the economic sentiment of even smaller companies.

“Right now even I am hiring for four different positions to play our small part to be ready for this mega event. The good times are coming back and each one of us will play our part, towards rebuilding the global sentiment, said, Shah.

If the job advertisements on online platforms are any indication, several companies have advertised for ‘Expo jobs’ and are calling in applicants for positions like waiters, storekeepers, drivers, chefs and sales executive to mention a few.

Patel said there is also a high demand for senior-level executive talents such as operations and project managers, drone show managers, senior manager production, guest services managers.

“Companies are also looking to hire mid-level talents such as customer service agents, tour guides, promoters and hostess as well as lower-skilled workforces such as technicians, helpers, cleaners and electricians.”

In addition, thousands of new positions are open as country pavilions are hiring people to man the pavilions. More than 200 participants are taking part and working at many pavilions are almost complete.

 

“Expo 2020 hiring’s have been slowly picking up since the end of Q1 with a majority of the population being vaccinated and declining Covid cases are adding momentum to hiring. We further expect a major increase in employment opportunities in the coming months,” said Patel.

Source:www.khaleejtimes.com

 

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