Optimistic recovery in real estate flourishes with newfound interest in luxury developments
Dubai, UAE: Leading industry developers forecast a steady recovery in the real estate market with a promising interest from resilient investors, brokers and homebuyers.
The live Cityscape Global exhibition, taking place 9th - 11th November 2021 at the Dubai Exhibition Centre (DEC) at Dubai Expo 2020 site, will present top development enterprises including DAMAC Properties and Azizi Developments.
DAMAC properties’ Senior Vice President, Niall McLoughlin, is confident that the current recovery we are seeing in the real estate market will continue for the coming months.
“I see in the medium term, a continuation of a buyer’s market, as competitive prices and payment plans continue attracting customers. With the recent rise of people moving into villas, developers are trying to make community life as appealing as possible, offering residents countless amenities.”
The pandemic has placed significant importance on larger living spaces and the inclusion of high-end facilities. As the world has adapted to a semi-permanent work-from-home system, developers are eager to start constructing new properties with larger living spaces to meet the demand of potential investors and organisations.
McLoughlin says, “At DAMAC, we believe the current shift into working from home is a sign of our times and we have seen this move being permanently adopted by global entities, particularly when planning future real estate exhibitions, as Cityscape Global has done with its hybrid model approach this year. As developers, we welcome change with open arms in efforts to expand our portfolio and innovate.”
“About 19,056 new units were launched in 2021, which is the lowest since 2012 according to CBRE. One of our main goals of participating at Cityscape is enhancing our relationships with our existing customer base and continue growing our plethora of units.”
In an effort to advance their inclusion in the rapidly digitalised real estate industry, DAMAC has modernised their DAMAC Living App, gearing it towards making every home-related process available to residents and homeowners at the touch of a button, eliminating the physical visit to offices needed for administrative tasks.
“The pandemic made us review how we can improve our digital presence. We are growing our IT team to accommodate our vision of being a real estate industry tech-leader. Not only have we implemented virtual home tours but are exploring other realms of virtual reality to improve the home buying experience.”
Likewise, Farhad Azizi, the CEO of award-winning developer based in Dubai - Azizi Developments, echo’s DAMAC’s sentiment of enhancing the buyer experience by advancing living spaces.
“We’ve announced the addition of new facilities at our flagship community Riviera including a 3.2km running and cycling track winding through the entire community, numerous basketball and tennis courts, playgrounds, as well as plenty of parks and greenery throughout. We want to make sure that this development lives up to - and surpasses - all our stakeholder expectations. We are not here to just construct mere buildings; we want to enrich lifestyles for generations to come”
The leading developers are confident in the influx of buyers in the region, particularly with their luxury developments across Dubai.
“We are very confident that by 2023 the remaining 20% of unsold units will be sold, aligning with the UAE’s 2021 vision of instrumenting iconic, luxury properties -considering they are well-differentiated in terms of location, pricing, sizing, amenities, and lifestyles offered. We plan to pursue the very feasible and lucrative opportunity of converting some of our properties into hotel units, for which there is a high demand due to Expo 2020. We are already in negotiations with hospitality providers to explore such options and are looking into leasing and other revenue generating assets to further our growth and profitability.”
“Although the exhibition only lasts for six months, the decade following the event known as the ‘Expo effect’, maintains the positive impact that the Expo traditionally has on the host country’s economy and real estate market. We see that previous host cities such as Milan and Shanghai experience an increase in property prices after the event, and with the UAE’s prompt response to the Covid-19 pandemic, international investors can witness the resilience of the market first-hand. Azizi has received a noticeably increasing demand from European investors over the last two quarters, with sales to nationals from the continent having surged by nearly 40%.”
The value of transactions within the luxury residential industry rose by 25% in the first quarter of 2021, compared to the previous year according to Luxhabitat Sotheby’s. The brokerage notes the rebound in home sales in the second quarter of 2021, with an increase in the total volume of transactions for the home market in Dubai becoming more than AED 16.7 billion, compared to the AED 5 billion in the same period last year.
According to Chris Speller, Cityscape Group Director, “In terms of future trends, Expo 2020 has opened a new focus for investors in areas close to the Expo 2020 site. While the property occupancy is still low, the expansion of Maktoum airport has anticipated a dramatic increase in tourism to these areas. With upgraded infrastructure including new metro links, additional commercial and residential spaces – the area is rapidly growing. There has been an influx of tourists who have been working from home, from Dubai and this is expected to steadily increase.”
The live and in-person event will be held in adherence with Informa AllSecure, an enhanced health and safety standards that raise the bar on safe, hygienic, productive, and high-quality organised event experiences. The Summit returns with support from its key sponsors Colliers, JLL, Kohler, Land Sterling, LWK + Partners, Regus and WhiteBricks, on the 7th and 8th of November.