The Essential role of property asset managers

The role of the property asset manager is misunderstood by many, with the majority of property investors and other industry participants thinking that the role does not extend beyond the collection and remittance of rental receipts and acting as a buffer between the landlord and the tenant.

Little do they realize that a good property asset manager will generate a greater return from a property portfolio and enable long term portfolio strategic objectives to be realized.

Any investor in property would benefit from a professional property asset manager but it is essential to   know what to look for in selecting a professional to manage their property(s)?

  1. Astute investors understand that you need a professional who is experienced in the market. Not just any market, but the Dubai market. Typically, if you find somebody with at least 10 years’ experience, you will have found somebody who has survived the global recession, and that should provide a reasonable indication that they are in the business for the long term and that they had the skills to navigate and survive Dubai’s property slump. Many didn’t.
  2. Strategic Approach. A competent property asset manager will provide a whole host of services for the investor but the most important is the development of a Property Portfolio Strategy. The professional must be able to articulate and present his thoughts after conducting a thorough assessment of your personal situation and property portfolio. He must be able to provide you with a credible strategy and activity plan which is designed to harness the true potential of your property and provide you with the maximum rate of total return. It is essential to have a well thought out strategy for your property portfolio if you are to maximize your returns.
  3. Knowledge and Understanding. Not just anybody can formulate a credible and implementable strategy. It requires years of expertise and a fundamental understanding of what makes Real Estate such a worthwhile and superior investment. A true professional will have a strong knowledge base on topics including industry history, current market factors and trends, risk factors, and the likelihood of relevant future events that will affect the performance of your property investment. This knowledge should span global, regional and local landscapes and will require a good understanding of economic factors, industry knowledge extending to government policy and regulation, finance and market dynamics.
  4. Planning Expertise and Ability to Implement. Forming a strategy is one thing, but being able to bring the strategy to life is quite another. A true professional will provide an activity plan which will include details of pricing and marketing, customer relationship management and tenant management and policy for the entire portfolio. Essentially, this area of expertise is related to the “topline” or revenue generation and management of the property. Equally important is the cost management and maintenance supervision of the property. Many times, I have seen excellent “topline” performance being eroded due to poor operational and maintenance cost controls.
  5. Organizational Ability and Communication Skills. Managing your property portfolio will also require proper performance measurement, communications and review schedules, and status reporting and financial statements. Investors should always seek examples of these elements as transparency and candid performance appraisals are essential for managing your portfolio correctly by addressing shortfalls to objectives, issues requiring addressing and opportunities for performance improvement, in addition to your peace of mind.
  6. Customer Centricity. It’s important to choose a property manager who you can work with and who, you believe, has your best interests at heart. Your property manager must be customer centered and, unfortunately, in this business, this is not always the case.
  7. There is no point entering a business relationship that is lacking in mutual trust and respect. The investor must have confidence in his ability to manage a business … the investor’s business… which just so happens to be a property portfolio. As with all investments, but especially investments in property, there will be good times and challenging times. There is no such scenario as “set and forget”. It doesn’t exist. If you do not respect the manager you have appointed, the relationship will not survive the challenging times and you will need to go through the whole process of finding a replacement.
  8. A History of success. The investor should be sure to ask for referrals and call some existing clients. It’s important to seek out success stories and ask to see examples of client reports to assess their completeness, continuity and timeliness. The investor must ask the property manager carefully thought out questions to gauge the depth and breadth of knowledge that he possesses.
  9. Finally, it’s essential that the organization the investor is dealing with has the resources to support the manager of the portfolio. In these times of eliminating overheads, individual performance can be inhibited because of a lack of organizational support. The investor should ask to meet the team.

Choose Wisely The investor must ensure that the property asset portfolio is in good hands providing expected returns with as little hassle as possible. But the investor must realize that once a property manager is appointed, the ultimate return on the investment is largely in his hands.

WHAT TO FACTOR INTO SPACE CALCULATIONS

If you are planning on expanding your business or simply relocating from your old office, the first major task at hand is determining how much office space you will require for your enterprise. Now, this is no easy task, and there are many considerations to be made as the decisions that you make at this stage can have a serious impact on how efficiently and effectively you will be able to conduct your business.

How so? Because your new office space will have a direct effect on your staff morale and productivity, impressions made on your new or potential clients or visitors to your office, and on your overall brand image as well.

When estimating space requirements, you first need to understand how you plan to arrange your employees so as to promote efficiency and productivity through the application of clever office spatial design. You must appreciate that allocating office space and configuring seating plans is very political, and egos within your staff can be either inflated or deflated depending on what you decide to do. So tread carefully, and make sure you can logically justify every decision that you will make.

For a start, everybody will have an argument as to why they must have their own office, or why their office needs to be bigger. Reasons, some valid and some not, will range from the need to keep confidential data and material away from prying eyes to the necessity to hold confidential meetings, to requiring a quieter work environment so as to concentrate better. Typically, its ego that’s the real driver behind such requests.

The easiest way to allocate work space is to do so on the basis of seniority requirements.

For example, I would generally allocate an office (or cabin) for the president, VP(s), CEO, general manager, directors, and anybody who deals with particularly sensitive information such as personnel managers or legal staff. The actual size of the offices is a function of seniority, how much of an impression you wish to make on clients, how efficient your office is in utilizing digital data storage, how many meetings are conducted with your clients or staff, and the size of the meetings that you will periodically conduct.

Depending on the above considerations, I would usually recommend to my clients that the offices should range in sizes from 40 sq.m. for presidents, 25 sq.m. for VPs to 15 sq.m. for general managers. Obviously, these sizes will vary according to business size and type, and you may find that many larger corporations actually will have guidelines as to what positions within the company warrant an office and how large it should be.

Cubicles or workstations tend to be of a more uniform size except where the organization employs team leaders or supervisors.

Employees such as secretaries, customer service reps, accountants, programmers, data entry, clerks and engineers generally require around 12 sq.m. to 15 sq.m. depending upon document storage requirements and desktop hardware such as computer screens, laptops, printers, scanners and telephones.

Estimating document storage is a critical factor. While every employee will probably require their own document filing cabinets, many businesses also need to provide for central file or document storage areas. This is one area where inefficiencies in data storage by employing digital storage capability can cost a company dearly by paying for, what in some situations may be premium space to simply store files which may be referred to only in emergencies. This is extremely inefficient, and alternative solutions such as digital data storage or offsite warehouse storage should be explored.

There are many additional spatial requirements that also need to be considered. Reception areas will logically depend upon the number of receptionists employed, but also be influenced by the number of visitors are typically received, and whether you utilize the reception area as a waiting area as well.

Conference and meeting rooms are always an interesting topic of discussion. It always seems that there are never enough, and many companies have quite elaborate online booking systems for staff to reserve the meeting room of their choice. Rule of thumb would suggest that a conference room should be 5 sq.m. with 2.5 sq.m. allowed for each seated person. Obviously items such as projection equipment, screens, sizes of conference tables and spare seating would need to be factored in before a final size could be determined.

Depending on the size of the organization and the actual amount of mail traffic expected, the mail room can be anywhere between 15 sq.m. to 30 sq.m. The process for distributing mail will play a large part in determining space requirements as systems utilizing “pigeon holes” can be quite space intensive.

Lunch and break rooms are very important for employee morale and can add to productivity as well as they often promote teamwork and cross-functional dialogue. Make sure that you provide a comfortable space for your employees by allocating at least 7 to 10 sq.m. plus 2.5 to 3 sq.m. per person seated.

Finally, do not get caught in the trap of outgrowing your premises halfway through the lease period. Calculate your future space requirements based upon your projected growth plan. Many organizations neglect to factor in the possibility of growing by at least 25% over the ensuing 5 years, and find themselves desperately short of space with no convenient place to expand to. While you may have unutilized areas in the initial period of the lease, this is far cheaper than having to either terminate a lease to relocate or have a second office situated in a different address.

 

3 FACTORS THAT WILL INFLUENCE DUBAI REALTY


I believe that success in property investment is attained only when the objectives of the investor have been realized. It‘s as simple as that.

A vital component of a property portfolio investment strategy is the careful setting of financial objectives.

These must include total return, capital appreciation, revenue streams, net results and eventual investment values all wrapped up in a time frame deemed strategically optimal for the investor. If these have been met, then the investment, can be considered a success.

However, many investors suffer from the “should have, could have, would have” syndrome. This occurs when the investor feels that his investment did not outperform the market, leading him to depart from the initial strategy, revert to short term thinking horizons and make poor decisions regarding his portfolio.

Those who have had the greatest success possess the ability to think long term, make rational, well researched and carefully thought out decisions with the end objectives in mind and understand that every real estate industry globally will go through cycles of growth and contraction.

They don’t panic. They do not get duped into making short term decisions based on inevitable market fluctuations, and they treat headlines such as oil price deflation as the catalyst for gaining a greater understanding of the underlying events that are shaping the industry and if any opportunities may conceivably arise.

“You need to be able to communicate knowledgeably with the experts. The investor fraternity is getting more knowledgeable.”

This is proactive investing. Investing in property is all about recognizing and capitalizing on opportunities that are consistent and supportive to your wealth accumulation objectives.

To do this, you must have some knowledge about the industry.

The old adage of “Don’t invest in anything you don’t know” applies. You need to be able to communicate knowledgeably with the experts. The investor fraternity is getting more knowledgeable.

More attention is being paid to location, quality of product and maintenance services, and the extent of completion and quality of infrastructure is now playing a big part in investor consideration.

With so much supply available, astute investors could demand, seek out and purchase the best of what was on offer, and the realization of the importance of these factors has remained a key learning for most of them.

In the post-recession era, things changed. The chase for yield along with an increase in the level of critical assessment of true values has meant that properties that offer more in way of physical product and potential rental returns are attracting the greatest attention. Investors have learnt.

The fundamental drivers of market values remain: location, product features and benefits, product quality, and demand and supply to be successful, you must have a clear understanding of what you are trying to achieve and what role your property portfolio will play. What proportion of your total investment portfolio is allocated towards property? What is your source of finance?

The more skillful you are at conceptualizing your wealth generation schematic, the greater is your likelihood of generating successful strategies to grow your wealth.

You need to identify, engage and work with a professional in the industry. As astute, skillful and knowledgeable as you may be, a reputable, experienced and client focused full service agency will greatly enhance your level of success.

Select wisely. Do not fall into the trap that the cheapest will be good enough as this is rarely the case.

5 Key Questions You Must Ask Yourself Before Investing!

I always recommend that clients consult with a financial advisor prior to embarking upon the purchase of a property. Investing in property requires careful planning and a clear understanding of what it will entail.

How much do you really know about property as an investment?

You must have some knowledge about any investment that you might be considering. Property is no different. The old adage of “Don’t invest in anything you don’t know” applies. You may not be an expert, but you need to be able to communicate intelligently and knowledgeably with the experts.

Do some homework on the industry and gain an understanding of where the industry is now, where it is headed and what is driving its direction and development. “Get a feeling of its composition and what it has to offer you in terms of wealth generation opportunities, how you might be able to engage those opportunities and when you envisage starting your foray into the property investing space.”

It’s difficult for anybody to accurately assess opportunities and the risks associated with those opportunities if they have little knowledge of what it is they are investing in.

 

Are your investment objectives clearly defined and well considered?

As with any investment, investing in property is all about recognizing and capitalizing on opportunities that are consistent and supportive to your overall wealth accumulation objectives.

You must have a clear understanding of what you are trying to achieve and what role your property portfolio will play within a larger diversified investment portfolio. What proportion of your total investment portfolio is allocated towards property? towards stocks or bonds? towards gold or commodities? Etc.

The only person who can determine what you are trying to achieve is you so be sure you know you’re your objectives are before doing anything.

 

What is your source of finance?

Needless to say, investing in property is often a capital intensive exercise and, depending on your strategy, returns can be subject to relatively long lead times. A sufficient and robust finance plan is essential. What is your source of finance and where do the greatest risks lie in the event of an economic downturn or change in circumstances? How liquid might you need to be? How exposed will you be to interest rate increases and or exchange rate fluctuations? What level of gearing or leverage are you comfortable with? Will you be able to preserve capital invested in your property portfolio during cyclical swings in the market or will you need to move capital among portfolios?

All these questions (and many more) need to be addressed and the more skillful you are at conceptualizing your wealth generation schematic, the greater your likelihood of generating successful strategies to grow your wealth.

 

Do you have a financial advisor? (That you trust)

I always recommend that clients consult with a financial advisor prior to embarking upon the purchase of a property. Investing in property requires careful planning and a clear understanding of what it will entail; the effects it will have on lifestyle, the risks it may pose, the stresses that may emerge while, at the same time, the benefits of generating wealth in, what can be, a very lucrative industry . A financial advisor can help you understand and assess all these elements by helping you determine what you actually need to do (or do without) to achieve your objectives.

Ask yourself if you know definitively what you can afford, how best to use available finance, how to accurately assess alternative investment options, how best to utilize your current assets and how investing in real estate is going to enable you to grow your wealth in the future. A financial advisor will view your investment as one part of your overall financial landscape and should be able to guide you into committing the right type and the right amount of resources to acquiring that dream home that everybody aspires to.

As with any investment, investing in property is all about recognizing and capitalizing on opportunities that are consistent and supportive to your overall wealth accumulation objectives.

 

Do you have a team of professionals (that you trust) who can assist you in your quest?

Are you able to identify, engage and work with a professional in the industry? Do you have the skill to select the right agency? Do you know what separates professionals that will provide you with tangible added value rather than simply line their pockets with your money? It’s up to you to choose wisely and remember, cheapest is not always best. Do you know where to find an experienced and passionate team with people who really enjoy what they are doing? An agency that exhibits a breadth and depth of industry knowledge and expertise? This is important. Look for longevity and evidence of good relationships with key industry stakeholders such as the major developers or authorities such as the Dubai Land Department, RERA, DEWA or Economic Department. And finally, look for an agency that has received some form of Industry or peer recognition. These are the hardest plaudits to get! ■

MORE & MORE UAE RESIDENTS PREFER PROPERTY PURCHASE TO RENTING

The idea of achieving financial freedom and not having to blow off a good portion of your hard-earned salary on rent will always be an alluring one. Evidently, more and more people are choosing to follow this path in the UAE, as we witness a rising trend in property purchases, among residents in their 20s, 30s, and 40s, with even newly launched projects being sold out in days.

No doubt, as word-of-mouth spreads that the UAE property market is ripe for investment for the salaried class, so does the eagerness to hop on this trend and reap its benefits. However, as easy as it is to get swept up in this investment-fever, it must be noted that a good amount of research and knowledge must be put in to ensure that your investment brings you the benefits you have heard of.

Developers have noted this increased demand for supply, and, as a result, we are seeing a number of massive residential projects launching in the Dubai, Abu Dhabi, and Sharjah real estate markets. With so many options to choose from, it can be overwhelming to decide on where your investment should go. It is, therefore, important to take a step back, take a deep breath, and realize what your end goal is when investing in property, as these end goals should be one of the primary factors to take into consideration. Are you looking to immediately move into the property that you are purchasing? Are you looking to sell this property soon after its surrounding area has developed? Are you looking to become a landlord and rent out the property you have purchased? All of these questions and more need to be answered on your road to property investment.

Investing in property, whether it is in the form of one large payment, or in a series of installments that can be equal to the amount of rent you are paying right now, can become a stress-inducing process. In my book, Landlording: From Renting to Financial Freedom, I delve into the specifics of such thought processes and explain how to get from one step to the next so that the property you invest in aligns with your goals and will ultimately be a stress-free and profit-generating endeavor.

To learn more about these key points and start your very own journey into the real estate market with Landlording: From Renting to Financial Freedom, e-mail Books@mohanadalwadiya.com

THINGS THAT SUCCESSFUL INVESTORS DON’T DO!

I have been lucky in my professional life to have met and worked with some very successful investors. While I have found each to be different in personality, style and even investment philosophy, there are some attitudes, traits and perspectives that are shared among the most successful investors I have had the privilege to have met.

Thinking back to many interesting discussions I have had with these people … some of whom are my most loyal and respected clients … there a several things that I have not seen from this group of achievers. This is what separates them from the rest.

Never sink into negativity!!

I have rarely heard my successful investors project a negative stance about anything in their professional life. This is not to say that they support every philosophy, concept or idea and they will also not accept an occurrence which is contrary to what they think should have happened.

But instead of expressing such a negative emotion as hate, they continue to think positively and seek positives from a situation or take a positive approach to remedying that which they do not agree with. As a result, the dialogue is always positive, creating an environment positivity, proactivity and energy directed towards progress.

Taking this approach also helps to create a pleasant, purposeful and fruitful environment in which to work and helps to maintain or even build esteem and confidence among those that can contribute to achieving exceptional results. It promotes objectivity, focus and decisiveness.

Never assume the world is fair!!

The world is not a fair place, never has been and never will be, and successful investors understand, embrace and accept that. This allows them to be immune from the negativity that can arise when an individual feels hard done by or cheated. It also allows them to plan, create contingencies and maintain a positive attitude when a seemingly unfair occurrence occurs resulting in a greater chance to respond to a situation rapidly and appropriately rather than dwelling on the fact that an occurrence was “unfair”.

 Never accept that there is only one solution to any one problem!!

An open mind is essential to development, progress and eventual success. Successful investors will embrace new ideas and innovation. To not realise that progress is created from ingredients consisting of past experience and innovation is too rely too heavily on tried and true practices that gradually lose relevance over time. This form of decay has destroyed entrepreneurs, global corporations and even whole economies and societies. With globalization, the world has become a much smaller place. To not embrace, improve and implement world’s best practice and only holding close what you are comfortable is the biggest threat to creating continued success.

Never believe that you are solely responsible for your own success!!

Nobody has ever made it on their own. It was once thought that the iconic, independent, totally self-sufficient, unchallengeable, silent-type, hard-nosed entrepreneur who left metaphorical bodies in his wake as he doggedly climbed the mountain of success was the role model that should be emulated by all who craved achievement. Many have tried and they all failed.

No-one can achieve success on their own. As a matter of fact, the most successful people I have met have surrounded themselves with successful people and ensured that those people shared in their success. They seek opinions, listen carefully, discuss intelligently, consider alternatives and have their decisions reviewed. They reward those who contribute to their achievements and help them succeed as well for this is also a valuable way to learn and build momentum at the same time.

Never abandon the realm of possibility!!

Successful people know that nothing is impossible and hold the belief that every problem has a solution, some of which just haven’t been thought of yet. Anything is possible as long as there is willingness to explore, question and challenge and imagination is intensely applied and ingenuity is rewarded. Achievers do not complain about obstacles. They embrace them so as to gain an understanding as to how they can be overcome for they truly believe that nothing is insurmountable.

Negative words like “can’t,” “won’t,” and “impossible” are never heard from the mouths of unsuccessful individuals. They know complaining will not help them, but actually doing something about the issue at hand will.

Never look back!!

Could have… would have … should have. We have all heard these expressions of retrospective folly. Experts in hindsight have no place at the table of successful people and regret is a fruitless and pointless emotion. Successful people thrive on opportunities not lost opportunities. If they cannot make one opportunity work to their satisfaction, they move on and find another opportunity. Regret simply slows down the effective pursuit of the next great opportunity.

Never accept the unpalatable as inevitable!!

Victims have no choice. Successful investors create alternative solutions to every problem and will carefully consider all of them. In this way, successful investors are never victims for they create an environment filled with choices. Then it’s just a matter of deciding which choice represents the best way forward.

Successful investors know how to create opportunities where normal people think none seemingly exist. Successful investors believe that opportunities always will exist, but they are hidden in the recesses of our individual and collective imaginations. The reason why there are successful, is largely due to their determination and ability to extract those opportunities, while others are stagnating in the belief that they don’t exist!!

How Increasing Bank Interest Rates Can Affect Real Estate Investments

Not too long ago it was announced that The Federal Reserve will increase banking interest rates by 4.75 to 5%. This decision can have significant effects on various sectors of the economy, including the real estate market. Real estate investors, in particular, should be aware of how an increase in interest rates can impact their investments.

One of the main ways in which an increase in interest rates affects real estate investment is through mortgage rates. As interest rates rise, the cost of borrowing money to finance a property purchase also increases. This can make it more expensive for investors to buy and own real estate, which can reduce demand for properties and potentially drive down prices.

Additionally, as borrowing costs increase, investors may need to put down larger down payments to secure loans. This can make it harder for some investors to finance their purchases, particularly those who are already stretched thin or have limited access to credit.

However, it’s not all bad news for real estate investors. Higher interest rates can also have a positive impact on the real estate market. As interest rates increase, it can lead to a decrease in inflation, which can help stabilize property values. Additionally, if the economy is strong, as we have seen with Dubai, an increase in interest rates can lead to higher wages and increased demand for housing, which can drive up rental rates.

Overall, an increase in interest rates can have a mixed impact on real estate investment. While it can make financing more expensive and potentially reduce demand for properties, it can also help stabilize the market and create opportunities for investors who are able to navigate the changing landscape. Real estate investors should stay informed about the Federal Reserve’s decisions on interest rates and be prepared to adjust their strategies accordingly. This is where a well-experienced, gold-ranked agency steps in to provide expert advisory services to help investors navigate the situation.

Contact Harbor Real Estate today to help you find the ideal strategy for your portfolio and future investments:

+971 4 325 1616

+971 50 916 6543

Rental Yield Tightening?

Many people misunderstand the role of the property manager, thinking that the role does not extend beyond the collection and remittance of rental receipts and acting as a buffer between the landlord and the tenant. Little do they realize that a good property manager will generate a greater return from their property portfolio and enable a long term portfolio strategy to be realized. So what should you look for in selecting a professional to manage your property(s)?

Well, first of all, you need a professional who is experienced in the market. Not just any market, but the Dubai market. Typically, if you find somebody with at least 10 years of experience, you would find somebody who has survived the global recession, and that should provide a reasonable indication that they are in the business for a long time and that they had the skills to navigate and survive Dubai’s property slump. Many didn’t.

A competent property manager will provide a whole host of services for you but the most important is the development of a Property Portfolio Strategy. Your chosen professional must be able to articulate and present his thoughts after conducting a thorough assessment of your personal situation and property portfolio. He must be able to provide you with a credible strategy and activity plan which is designed to harness the true potential of your property and provide you with the maximum rate of total return. It is essential to have a well thought out strategy for your property portfolio if you are to maximize your returns.

Not just anybody can formulate a credible and implementable strategy. It requires years of expertise and a fundamental understanding of what makes Real Estate such a worthwhile and superior investment. A true professional will have a strong knowledge base on topics including industry history, current market factors and trends, risk factors, and the likelihood of relevant future events that will affect the performance of your property investment. This knowledge should span global, regional and local landscapes and will require a good understanding of economic factors, industry knowledge extending to government policy and regulation, finance and market dynamics.

Forming a strategy is one thing, but being able to bring the strategy to life is quite another. You will require an activity plan which will include details of pricing and marketing, customer relationship management and tenant management and policy for the entire portfolio. Essentially, this area of expertise is related to the “topline” or revenue generation and management of the property.

Equally important is the cost management and maintenance supervision of the property. Many times, I have seen excellent “topline” performance being eroded due to poor operational and maintenance cost controls.

Managing your property portfolio will also require proper performance measurement, communications and review schedules, and status reporting and financial statements. You should always seek examples of these elements as transparency and candid performance appraisals are essential for managing your portfolio correctly by addressing shortfalls to objectives, issues requiring addressing and opportunities for performance improvement, in addition to your peace of mind.

You also need to choose a property manager who you can work with and who, you believe, has your best interests at heart. Your property manager must be a customer centered and, unfortunately, in this business, this is not always the case.

There is no point entering a business relationship that is lacking in mutual trust and respect. You must have confidence in his ability to manage a business… your business… which just so happens to be a property portfolio. As with all investments, but especially investments in property, there will be good times and challenging times. There is no such scenario as “set and forget”. It doesn’t exist. If you do not respect the manager you have appointed, the relationship will not survive the challenging times and you will need to go through the whole process of finding a replacement. So take your time but invest your time to your benefit. Be sure to ask for referrals and call some existing clients. Seek out success stories. Ask to see examples of client reports and so you can have an idea of their completeness, continuity and timeliness. Ask your property manager carefully thought out questions to enable you to gauge the depth and breadth of knowledge that he possesses.

Ensure that the organization you are dealing with has the resources to support the manager of your portfolio. In these times of eliminating overheads, individual performance can be inhibited because of a lack of organizational support. You should ask to meet the team.

Finally, remember, it’s your investment, and you need to ensure it’s in good hands providing you with the returns you expect with as little hassle as possible. Once you appoint a property manager, your ultimate return on your investment is largely in his hands. Choose wisely.

Managing your property portfolio will also require proper performance measurement, communications and review schedules, and status reporting and financial statements.

Cryptocurrency Can Buy You Real Estate


A growing number of reputable developers in Dubai have started to accept cryptocurrency as payment. Let’s explore why this is and what it means for the Dubai real estate landscape.

By now the majority of you will have heard the term ‘cryptocurrency’ and have some knowledge as to what it is. Essentially, it is a form of digital, decentralized currency that has been around since 2009. Interest in this currency has peaked and dipped in various degrees since its inception. But, lately, more and more of the general public have started to see the potentials of investing in cryptocurrency. This rising interest, along with the advances in technology that have accelerated the process of ‘mining’ crypto, have somewhat pushed the currency into the mainstream. Subsequently, the facilitation of more official, large transactions, such as purchasing property, is something that has been growing in recent years.

Recent events and market analysis show that the UAE is determined to develop the crypto industry and is heading towards becoming a crypto hub. This fact can be observed by noting that major crypto exchanges such as Crypto.com, ByBit, Binance, and Kraken have been granted licenses by the Virtual Assets Regulatory Authorities (VARA) to operate in Dubai and Abu Dhabi free zones.

With major exchanges available in the UAE, purchasing real estate with crypto has become much easier, and as a result, the real estate industry is exposed to an even greater audience, both foreign and local. This incentivizes major developers in the country to get on board with the shift, further fueling the growth of both industries. As of now, Ethereum and Bitcoin are the two cryptocurrencies accepted by UAE developers.

There are pros and cons for using each of the abovementioned cryptocurrencies, but, more than anything, most investors are greatly drawn to the idea of trading a volatile currency such as crypto that is constantly changing in value, for a much more stable investment such as real estate.

Crypto trading has been going on for a while in the US and Europe, and it can be predicted that, as a result, those around the globe with a ready crypto wallet will be drawn to invest in the UAE real estate industry. As the process is streamlined and sped up, easy, upfront purchases of properties with no mortgage can be completed within days.

It is true that there are still many who are unfamiliar with the digital currency and that, as of now, there are still limited options in terms of crypto exchanges and currencies available in the UAE, but with the growth of this industry we are sure to see a parallel growth in the UAE’s real estate industry.

البقاء للأكثر ابتكاراً في السوق العقاري الجديد ما بعد كوفيد-19

واجه الاقتصاد العالمي في ظل تداعيات أزمة كورونا انكماشاً اقتصادياً مما كان له أثر كبير على شتى القطاعات ولاسيما القطاع العقاري. ويرى الرئيس التنفيذي لشركة هاربور العقارية والمحاضر في معهد دبي العقاري، مهند الوادية، تأثر قطاع العقارات بهذه الأزمة، وبالأخص قطاع الإيجارات

وقال: تراجعت أسعار الإيجارات وشملت تسهيلات ومبادرات من قبل عدد كبير من الملاك المؤسسين والأفراد تضمنت إعطاء أشهر إيجار مجانية أو تسهيلات في الدفع أو تخفيض للقيم الإيجارية للمحافظة على المستأجرين وتقليص نسب إخلاء المستأجرين

أما أسعار البيع فلم تنخفض بنفس الوتيرة، لأن القطاع العقاري كان يمر بمرحلة تصحيح تدريجي على مدى عقد من الزمن وصلت فيه أسعار العقارات لمستويات منخفضة لا توفر مجالاً لانخفاضات مفاجئة

كما أنه يجب الأخذ بعين الاعتبار أنه تم تطوير البنية التحتية القانونية والتشريعية في العقد الماضي بجهود جبارة من أصحاب القرار في الدولة ودائرة الأراضي والأملاك، لحماية جميع أطراف المعادلة العقارية من مشترين مستثمرين ومطورين ومهنيين عقاريين، والآن نحن بمرحلة نضوج قانوني لم يشهده القطاع من قبل، فقد تم طرح قوانين جديدة لتحسين قطاع العقارات منذ عام 2008. ومؤخراً تم تعديل السياسات النقدية والمالية التي طرحتها الحكومة بدولة الإمارات لتعزز الاقتصاد بطريقة تطمئن الجميع، لذلك نرى أن آثار أزمة «كوفيد-19» وتداعياتها الاقتصادية أقل بكثير من دول أخرى

فقد قررت الحكومة تأجيل أقساط الديون المتعثرة مدة 3 أشهر وإيقاف تنفيذ الإخلاءات الإيجارية والإجراءات التنفيذية وإعفاء رسوم تجديد التراخيص والأنشطة التجارية ورسوم حماية البيانات الشخصية وإعفاء رسوم إصدار وتجديد تصاريح العمل المؤقتة وتخفيض رسوم المرافق. وكذلك خطط التحفيز التي أطلقتها الحكومة، وخطة الدعم الاقتصادي للمصرف المركزي، إلى جانب حزمة الحوافز الاقتصادية التي ساهمت في توفير المرونة الكافية ومساعدة الاقتصاد ككل وقطاع العقارات على الاستجابة للأوضاع الراهنة

وقد أصبح التوجه الآن بعد حدوث هذه الأزمة للحكومة الذكية والإلكترونية، وبما أن حكومة دبي توجهت لذلك منذ فترة طويلة، لم يكن هناك عقبة لحدوث التداولات العقارية في فترة الحظر، وتم إدراج الكثير من التداولات العقارية ولكنها انخفضت بنسبة 60 % في تلك الفترة

وسيتم كذلك تغير العرض والطلب، فمثلاً سيستمر العرض على القطاع السكني، لأن السكن والعمل أصبح حالياً من البيت، فسيزداد الطلب على البيوت

وبالمقابل من المتوقع أن يتباطأ الطلب عللى قطاع المكاتب ومحلات التجزئة، حيث شهد التسوق أونلاين نمواً كبيراً

كما من المتوقع أن يستعيد قطاع الفندقة نشاطه تدريجياً مع تركيز الطلب على الفنادق الراقية والتي تتبع إجراءات السلامة وقد يؤدي ذلك إلى تباطؤ في الطلب على بيوت للعطلات

في الفترة الحالية، البقاء سيكون للأكثر ابتكاراً وتعايشاً مع واقع السوق الجديد. وتأجيل معرض إكسبو دبي سيفتح آفاقاً جديدة أمام المطورين، فإلى جانب أنه سيعطيها متنفساً للتعافي من الأضرار التي لحقت بهم بسبب الأزمة الراهنة، سيمنحهم فرصة لاستكمال وإنهاء مشاريعهم المخططة للعامين الحالي والمقبل