Category: Development in Dubai

• For the initial two months of 2023, demand for real estate in Dubai, the opulent commercial metropolis of the United Arab Emirates, reached a record high, according to real estate services company CBRE.
• Some residents of Dubai have experienced rent increases of more than 50%.
• “Trust me, there are those who are prepared to pay the price,”According to a survey released on Thursday by the real estate services company CBRE, demand for real estate in Dubai, the opulent commercial metropolis of the United Arab Emirates, reached an all-time high for the first two months of the year of 2023.8,515 deals were completed in February alone in Dubai’s residential market, a staggering 43.9% increase from the prior year. 17,741 home transactions were recorded in total in January and February combined.

  While some Dubai residents, who make up about 90% of the expat population, find it difficult to reserve a taxi or a table at a restaurant, many of them are being impacted the hardest by the fast and frequently dramatic increase in rent.

  When asked what percentage of their rent had grown year over year, a consultant based in Dubai said to CNBC, “A 60% increase.” The expert chose to move rather than pay the increased rent while residing in Dubai’s upscale financial area, the DIFC. Other DIFC residents have complained that their landlords have requested rent increases of 50% or more, and as a result, many of them have downsized or relocated to less expensive neighborhoods.

  According to RERA, the Real Estate Regulatory Agency, a division of Dubai’s Land Department, tenants are not permitted to request rent increases that exceed a predetermined percentage based on the property’s current market worth. But the DIFC functions independently of RERA regulations as a separate legal body.
  And landlords are discovering ways to get around RERA regulations by evicting tenants under the pretense that they are buying the property or selling it, then leasing it to a new renter for a rent that exceeds RERA guidelines. Brokers claim that although this technique is prohibited, it still occurs regularly since many renters are unaware of their rights.

  According to a car, between 2021 and the present, rentals in several Dubai areas have doubled. As stated by CBRE, selling prices have increased by an average of 11.5% in the year leading up to February 2023.

  However, many sellers reported significantly higher returns. An expat from Dubai who asked to remain anonymous for professional reasons purchased a residential property in early 2021 for around 4 million UAE dirhams ($1.09 million), renovated and redecorated it, and then sold it within the year for twice as much.

  Compared to early 2020, the environment is as different as night and day.

  Prior to the coronavirus epidemic, the oversupply of the market had caused a 25% decline in Dubai’s real estate market during the previous five years.

  ‘Bonkers’ rental market

  Landlords are aware that as more and more people move to Dubai, there will always be individuals prepared to pay their inflated rental rates, just as a lot of landlords are doing today to profit from lucrative sales.

  “Let me begin by using the word nuts. According to Ricardo Scala, founder of Ricardo Scala Estates and a luxury property broker located in Dubai, the rental market right now is simply insane. “Prices have increased by twofold and tripled in the last year and a half.”

  The average rent in Dubai grew by 27.7% from February 2022 to February 2023, according to CBRE’s data.

  Russian buyers

  By this point, it is common knowledge that a sizable share of last year’s real estate transactions were completed by Russians. It’s nearly impossible to go around the well-known Dubai Marina or Jumeirah Beach Road neighborhood without hearing Russian being spoken.

  We have seen a significant increase in Russian customers as a result of the conflict between Russia and Ukraine, Acar claimed. They were the nation with the biggest volume of transactions at the end of Q3 in 2022. Owners are taking advantage of that statistic since they are aware of it once more.

  German, Swiss, Italian, and British consumers have all increased significantly, according to Scala.

  Dubai’s openness and apparent normalcy for the majority of the Covid-19 pandemic, as well as the UAE’s stance of being open for business to all nationalities—including those from Israel, who cannot visit numerous Muslim nations, and from Russia, which is highly sanctioned by the West—have paid off.

  New citizens and businesses have also been drawn to the nation as a result of various facilitating economic and social changes that have been implemented over the past few years, such as the remote worker visa and the legalization of 100% foreign ownership of some businesses.

  Dubai ‘knows exactly what it’s doing,’

  Scala stated, “I believe Dubai’s government is fully aware of its actions. They have a very, very clever game plan, in my opinion. If you look about it at a very basic level, I can almost promise that everytime a dispute or issue arises somewhere in the globe, Dubai will release some sort of offer that encourages more people to visit Dubai within 14 days.

  Nobody anticipates a sudden decrease in real estate values in the interim.

  According to Scala, prices will temporarily stabilize and continue to rise at the same rates. “My industry colleagues and I are having a difficult time understanding how costs will decrease that much at this time, when there are only consumers paying the prices. Then he continued, “What we don’t want to happen is for them to keep rising up more and more and more.

  “Dubai is becoming more costly and it will be higher in price; it’s a fact of life,” Sajwani said to CNBC in January. The demand increases and people are able to pay higher costs because there are many wealthy individuals working for huge firms, he claimed.

   

Green buildings and sustainable cities will play a significant role in the solution if the world is to meet its ambitious climate change objectives and prevent catastrophic global warming. In the Gulf Cooperation Countries (GCC), the building industry is thought to be responsible for 17% of the region’s greenhouse gas emissions.

Adopting best-practice construction methods can significantly reduce global warming. The two areas where developers can enhance are upstream development and downstream operating. Lightweight facades can reduce the amount of energy used during construction, as well as the emissions produced during the manufacture and delivery of building components. Buildings’ negative effects on the environment and human health can be mitigated through sustainable design. For instance, in colder areas, properly insulated buildings can reduce heating expenses and reduce cooling cost in warmer countries.

The Sustainable City in Dubai was built by Diamond Developers, a private real estate firm that is leading the sustainable building movement, and was visited by the World Bank’s GCC management team to learn more.

A 500-unit neighborhood including a school, an autistic therapy facility, as well as recreational amenities like an equestrian center was built by the developers with a strong focus on sustainability and community.

Climate is a problem for a city where temperatures frequently exceed 40 oC for 4 to 5 months out of the year. Indoor rooms have to be able to be cooled by developers. However, Dubai’s environment also presents a chance because it has the ability to produce a great deal of solar energy, which could be used both for internal consumption and for export to be returned to the power system.

The majority of the buildings and parking spaces in the compound have solar panels on top, producing enough energy to satisfy the majority of the needs of the neighborhood. While well-insulated glass are installed on the northern frontages, south-facing facades are covered to keep the sun out. To reflect the sun’s rays and lower the demand for air conditioning, all surfaces are light in hue.

A “green spine” that runs through the center of the neighborhood offers space for many biodomes hosting locally consumed plants and vegetables from sustainable kitchen gardens. The management claims that a single vertical farming facility the size of a container may produce up to 4 tons of strawberries. Additionally, residents are urged to use organic methods in the allotments next to their homes to raise their own food.

Additionally, the neighborhood encourages soft modes of transportation like cycling and shady strolling (more than 80% of the development is car-free). The main form of motorized transportation in the neighborhood is shared electric buggies, while an increasing number of locals are opting to acquire electric cars in order to take advantage of the nearby charging stations.

To promote local goods and create jobs for locals, the developer purposefully chose to target local companies rather than international franchises to their core marketplace.

Due to the fact that Diamond Developers is a privately held business, it is fully dependent on an economically sound real estate strategy that benefits both the business and the end consumers. The neighborhood demonstrates that there is no inherent trade-off between environmentally friendly behavior and financial gains.

In order to support the UN Sustainable Development Goal 11, we at the World Bank advocate for urban development that creates livable, inclusive, low-carbon, productive, and sustainable cities and communities. Every year, the Bank spends an average of US$6 billion in initiatives for resilience and urban development.

In order to learn about best practices in the industry as well as within the private sector community that may be imitated not only throughout the Middle East and North Africa (MENA), but also throughout the rest of the world, we were interested in visiting this website.

The outcomes are astounding. This Dubai neighborhood eliminated more than 8,000 tons of CO2e in 2021, which is nearly the same as removing 853 automobiles from the road for a year. In comparison to Dubai’s average daily water use of 278 liters per person, the average in India is 162 liters. Additionally, recycling and sorting account for almost 80% of household waste.

This strongly supports the idea that governments can enact stronger, more environmentally friendly building rules to encourage the use of sustainable materials, improved insulation, and increased energy efficiency. The UAE has already taken action in this regard. In 2010, Abu Dhabi unveiled the Pearl Rating System, a framework for environmentally friendly planning, building, and maintenance of all new structures that is well suited to the region’s dry, hot climate. Dubai embraced the Al Sa’fat green rating system in 2016. Permits are not issued for structures that fall below the minimum bronze rating. Higher scores are optional in both systems, though, and there are regional differences in standards. Governments and regulators could offer incentives that will encourage developers and builders to reduce their emissions in order to achieve significant reductions in the building sector to adopt lowest carbon construction materials and methods.

Through institutions for connected stakeholder groups and organisations in the building sector, governments from all over the world can promote such practices. Our future is at stake.

Our world has already entered a new era of digitalization. Customers, particularly the younger generations, are just as at ease in both physical and virtual realities as they are in the most recent versions. Regardless of the sector they operate in, businesses must consider the changes and adjust in response to this fundamental lifestyles shift.

Although the real estate sector is the largest, there has been a substantial influx of proptech firms and creative solutions backed by cutting-edge technologies into Dubai’s somewhat traditional market.

The desire to acquire real estate in the UAE grows among people all over the world. There will be more players in the market as a result, and doors will be opened for innovative concepts and methods.

Is the PropTech Era Here in Dubai’s Real Estate Market?

The real estate market in Dubai is growing once more, and local analysts anticipate that the present rise will continue to be positive. Trend analysis predicts that investments in the real estate sector will rise as well, making it an ideal time to launch tech products for real estate brokers and agents as well as for builders, real estate investors, and tenants.

The real estate sector has developed into a “late bloomer” notwithstanding how deeply the new technology have permeated practically every area of our lives with game-changing concepts like Uber or Careem NOW. The proptech industry in Dubai is only getting started. Fortunately, the city has a strong environment that supports this digitalization: in addition to the flow of investments, the government frequently launches technology-focused, creative projects.

The idea of combining traditional and digital strategies is based on the idea that valuable data can be used to solve practical issues that stakeholders face while buying, leasing, handling, or renting real estate. And a couple of intriguing businesses, including PropInvest Tech and Nomad Home, have already understood this and are concentrating on making the daily lives of real estate sellers and purchasers easier.

However, there are numerous difficulties that come up when renting a house in Dubai as well as when investing. The number of expats drawn to the city who require a place to live but are unable or unwilling to purchase an apartment or a villa won’t be decreasing any time soon, especially as Expo 2020 brings even more visitors attention to dubai.

Another interesting area for tech enthusiasts is the rental sector, where there are numerous bottlenecks that proptech solutions may assist to alleviate. For instance, one of the most popular websites, Property Finder, has eliminated the need for applicants to fill out paperwork or visit the agency in order to discover an empty apartment to rent.

However, given the rigorous laws governing the rights and responsibilities of renters and landlords, relationships between tenants, landlords, and occasionally real estate brokers are more complicated and may come with more shocks and issues. Therefore, it may be safe to assume that Dubai real estate needs technological solutions to help streamline the procedures once the rental agreement has been completed.

Top Trends for the Development of Real Estate Software in Dubai

What technological solutions are therefore most advanced at the moment? We present an overview of the most well-liked and pertinent features that real estate agents, tenants, and property owners can benefit from thanks to property management software.

Virtual Home Tours

Lockdowns and COVID-19 have altered how we view interpersonal interactions in the actual world. And frankly, a Zoom call is preferable to scheduling a meeting. Property overview is being applied using the same idea. Potential tenants can virtually visit the property, study it, and form emotional connections thanks to VR technologies. Naturally, it wouldn’t take the place of actual tours because people still want to verify that reality corresponds to the virtual representation they were given. The choosing process might, however, be sped up and simplified as a result of renters’ ability to swiftly eliminate undesirable possibilities.

Property Management Automation

Landlords or property managers must perform upkeep, make sure the property isn’t vacant, monitor the frequency of rent payments, and handle a significant number of repetitive activities if they are to make a profit from renting it out. The majority of these procedures might be covered and simplified by real estate management software development. Property management software automates some routine chores like processing tickets, providing information on impending payments or properties that will be unoccupied soon. It additionally enables saving data on rental properties, renters, owners, maintenance requests, etc. Although it might seem straightforward, doing so can help managers save a lot of time and money while also enhancing the services.

Smart Technologies

IoT provides the foundation for the ideas of smart buildings and homes, and when combined with cutting-edge technologies like artificial intelligence, cloud-based services, and other emerging ones, it has the potential to transform the rental market significantly. Constant property and facility monitoring is enabled by smart technologies. For instance, using preventative maintenance, the landlord may stop pipe leaks from happening by patching them up in advance. It consequently results in fewer maintenance expenses and less stressful circumstances for everyone involved.

Due to its efforts to become the “City of the Future,” Dubai is deservedly regarded as one of the most forward-thinking, investor-friendly, and intelligent locations in the world. The building of the Dubai-Abu Dhabi Virgin Hyperloop, the electric sky pod network, and autonomous taxis are some of the most notable smart city technologies now taking place in Dubai. The emirate has undergone a significant infrastructure growth. In fact, the city intends for 25% of trips to be driverless by 2030, and Dubai will begin testing autonomous vehicles by the end of 2022.

Additionally, in 2021, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai, Vice President, and Prime Minister of the UAE, given a decree regulating the use of 3D printing in the construction sector to guarantee that a quarter of the buildings in Dubai are constructed using the technology by 2030. This was done to promote the adoption of advanced technologies in the emirate.

Dubai rated third among the top FDI sites of the future in 2021, based to the FDI Global Cities of the Future 2021/2022 report by fDi Intelligence, demonstrating the strong degree of investor trust in Dubai and its future-readiness. That so, the city’s safety, quality of life, and connectedness to the rest of the world are largely responsible for its investment attraction.

Not to mention that Dubai’s real estate may produce a ROI of up to 9%, which is much greater than what a lot of global markets can now give. The emirate’s prices for luxury real estate are also considerably less than those in other large cities like New York, Hong Kong, and Geneva. Given that the UAE does not currently levy a property tax and has no intentions to do so, it is not unexpected that in 2021, with the COVID-19 pandemic and travel restrictions, Dubai recorded the highest year value in terms of property deals (AED 300 billion, USD 82 billion).

Dubai, which recently became the initial paperless city in the world, has aggressively invested in digital solutions to foster growth and support sustainability. This has greatly facilitated government transactions. As a result, the Dubai Land Department (DLD) has emerged as the region’s first real estate digital platform, providing consumers with a variety of digital and paperless real estate processes. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, also introduced the Dubai RE-tech platform last year (2021), which makes use of cutting-edge AI technologies to let investors analyze data pertaining to the real estate industry. This platform is in line with the Dubai 2040 Urban Master Plan.

A collection of resources for strategy planning and policy formulation are also included, along with an immediate real estate database that offers market trends and industry indicators.

Launching District 2020, the legacy of the Expo 2020 site, is another significant move that will strengthen Dubai’s position as the “City of the Future.” The first “15-minute city” in the UAE will have broad pedestrianized walkways, a jogging track, a bicycle track, as well as a designated autonomous car route, all with an emphasis on the health and wellbeing of its inhabitants. Additionally, the District 2020 development will serve as a significant platform for businesses specializing in artificial intelligence, the internet of matters, big data, and blockchain in an effort to support the innovation-driven economy.

Utilizing other government agencies as peer comparisons, government performance goals frequently center on producing new revenues and reducing expenditures. The UAE government, on the other hand, has adopted a different strategy during the past few years, setting its eyes on providing services that would compete with the finest in the private sector and striving for the efficiency of a top bank and the customer-centricity of a five-star hotel.

Providing government services is difficult in many nations, including the United Arab Emirates, in large part because of demographics. A variety of ethnicities make up the population of the UAE, which is made up of around 88 percent of the frequently migrant nonlocals.

Because of this diversity and movement, the government must provide facilities that are on par with the greatest alternatives available globally and that are also simple to use and comprehend, even for newcomers.

In order to promote public happiness, the UAE government invested significantly in enhancing its services in light of these difficulties, modifications, and national goals. The introduction of electronic voting machines, the provision of a refillable debit card to expedite the payment of government fees, and the establishment of a government prize for the best technology-driven services were some of these initiatives. Leaders dismantled government silos, unified several organizations, and demanded collaboration from groups in order to make reforms swiftly and effectively. This article examines their initiatives in further detail.

Developing e-voting: A way to make it more convenient and inclusive

The Federal National Council of the UAE implemented e-voting in 2011 to boost civic engagement through making it easier and appealing to young people. The National Election Committee (NEC) set up voting locations around the nation in just two weeks that year, five months before election day. However, electronic voting machines were used to cast ballots rather than the conventional ways of completing out forms and putting them in ballot boxes.

Program managers used historical data and predicted turnout to determine the number of machines and support personnel required for each location. They then tested these forecasts through experimental projects. In final results, 13 voting stations were placed according to population density in each of the seven emirates, as opposed to 1 station in each emirate in 2006. Numerous staff members who had been trained by the NEC to assist voters at the stations had to be present in large enough numbers, and the physical sites had to be conducive to an efficient conduct of voting activities.

Encouraging creativity in app design through crowdsourcing

The government established the Best m-Government Award in 2013 to assist and promote ministries and to foster citizen engagement. Four categories of competitors receive the annual award: students enrolled in UAE universities, national, Arab, and international government agencies. Any mobile phone-based service delivery method used by the government is eligible, including automated text messages, online applications, and smartphone apps. The prize honors innovation in eight fields: tourism, economy and business, social affairs, health, education, the environment, and infrastructure and transportation. Additionally, a vital government service provided to third-party clients, including consumers and corporations, must be addressed by the solutions.

The winner of the student category receives a cash prize of 1 million UAE dirhams (approximately $300,000), as well as business assistance to commercialize the application, in an effort to promote innovative and creative thinking among students in particular. The second year of the award had 411 entries, up from 260 in the first year, representing an increase in participation of 58 percent. Government agencies from all around the emirates and overseas have been inspired by this competition to create apps that will enhance how citizens connect with their governments. Following were some of the second cycle’s winners:

• The Dubai Police created a solution that, among other services, enables residents to make payments on fines, report crimes and traffic accidents, and monitor the status of applications. This solution falls under the safety and security category. The Dubai Police said that within a year of its debut, its mobile website had amassed more than 1.3 million users, and its mobile app had been downloaded by more than 300,000. Within a week of the app’s November 2014 update, more than 3,000 people had downloaded it.
• The Drive Now Text Later campaign, developed by Khawarizmi International College students in collaboration with the Interior Ministry, aims to lessen the incidence of car accidents brought on by texting and driving. When the motion sensor senses acceleration and the app launches, the phone’s screen is locked.
• The Moscow city administration established Active Citizen in the international grouping of social issues. Through earning points that can be exchanged for free public services, the app motivates users to take surveys.

• Fostering a culture of excellence and raising the bar

  The Star Rating Program, which employs private-sector criteria to assess the standard of delivery of services and private-sector methodologies to uncover problems, was implemented by government organizations in response to the call from UAE authorities to improve their public operations for residents. Once every two years, organizations throughout the UAE are assessed based on eight criteria: alignment with strategy, citizens, offerings, pathways, citizen experience, service effectiveness and creativity, people, and technology. The organizations receive a plaque displaying their categorization as well as an evaluation report that contains suggestions for raising the caliber of the services they provide.

  It was simple to design such a system; the difficult part was getting approval from government agencies. The central government sponsored road shows, workshops, and advertisements for both the federal and local governments to attend in order to familiarize themselves with the new system in order to overcome initial objections. A few organizations offered to undertake pilot studies and rated themselves according to the evaluation. Finally, UAE leadership reaffirmed the significance of the initiative and the necessity of transparently and equally grading all services.

   

The ecology has been significantly impacted by Dubai’s development. The city has had impressive economic expansion and modernization, but it has also encountered a number of environmental issues. Here are a few ways Dubai’s growth has impacted the environment:

1. Reclamation of land: In order to lengthen its shoreline and build man-made islands like the Palm Jumeirah and the World Islands, Dubai has engaged in massive land reclamation projects. These initiatives have harmed marine biodiversity by upsetting marine ecosystems, destroying coral reefs, and altering coastal dynamics.
2. Dubai is situated in an arid area with a dearth of freshwater supplies. There is a tremendous demand on water resources due to the fast urbanization and population increase. Desalination plants, which use a lot of energy and produce greenhouse gas emissions, are largely relied upon by the city. Due to excessive exploitation, groundwater supplies have also been depleted, which has caused land subsidence and ocean intrusion.
3. Energy consumption: Due to Dubai’s ambitious expansion ambitions, more energy must now be produced. The city has traditionally produced a large amount of its electricity using fossil fuels. However, with the execution of solar power projects and the creation of the Mohammed bin Rashid Al Maktoum Solar Park, there has been a movement in recent years toward renewable energy sources.
4. Air pollution: Dubai’s fast urbanization and high traffic have both exacerbated the problem. High amounts of particulates and nitrogen dioxide have been caused by emissions from automobiles, factories, and construction activities. Stricter car emission regulations and the usage of environmentally friendly transportation methods have both been implemented in an effort to reduce air pollution.
5. Trash management: Due to Dubai’s rapid population growth and development, more trash is being produced. Infrastructure for recycling and proper waste management are crucial for reducing the negative effects on the environment. The development of waste-to-energy facilities and the implementation of recycling programs are examples of city endeavors to advance waste management procedures.
6. Loss of biodiversity: Natural habitats and ecosystems have disappeared as a result of Dubai’s urbanization. The city’s growth has impacted native plant and animal species by encroaching on desert environments. By creating protected areas and animal reserves, efforts have been undertaken to preserve biodiversity.
7. Initiatives for sustainable development: In recent years, Dubai has acknowledged the value of sustainable development and has introduced a number of programs to lessen its negative environmental effects. These include the Dubai Plan 2021, which includes sustainability objectives in areas including transport, waste management, and air quality, and the Dubai Clean Energy Strategy 2050, which seeks to provide 75% of the city’s electricity from clean sources.

Dubai’s rapid development has created environmental issues, but there is also a rising understanding of the importance of sustainability and conservation. In an effort to move to a green and more sustainable future, efforts are being undertaken to reduce the detrimental effects on the environment.

The Dubai Land Department (DLD), through the real estate development sector, has signed a collaboration agreement with the technology firm Xclusiverse in order to launch the “Real innovation incubator 2023” initiative.

The purpose of this project is to draw in new, innovative real estate enterprises from around the world while also enhancing local businesses’ capabilities. This will improve its digital infrastructure and put it in line with Dubai’s D33 economic goal. The project also aims to make it possible for new and innovative goods and technologies to be tested and commercialized in the Emirate.

The recently inked agreement states that the two sides want to increase confidence among investors in Dubai’s real estate sector by offering a distinctive investment environment, maintaining solid real estate system governance, and fostering rules for real estate innovation.

In addition to raising customer satisfaction, our alliance will improve services to deliver the greatest outcomes and advance the industry’s overall development.

The cooperation agreement calls for cooperation in many fields, most notably the gathering of a team of top specialists. While guaranteeing information security, the virtual incubator will follow the finest regional and international standards and practices.