As we enter the second month of the year, we have put together a few of the current trends in UAE real estate.
Affordable housing is the name of the game for many of Dubai’s future developments, a concept that was even one of the themes of Cityscape 2015. As the demand grows for low to mid-market homes, the country’s real estate developers have begun to enter this new housing segment, including Sobha Group and Deyaar.
Despite the lower prices, the developments will not be lacking in quality and are mostly located in developing Dubai areas, such as Dubailand, Dubai South, and IMPZ.
Here are a few of the upcoming off-plan projects that fall in the affordable segment: click here
Holiday Homes: Changing the hospitality landscape
In the past, tourists, business travelers, and relocating residents would have opted to stay in a hotel. However, holiday homes and short-term residences have become a new favorite amongst Dubai’s tourist accommodations. The law governing holiday homes was issued at the end of 2013 and subsequently the Department of Tourism and Commerce Marketing (DTCM) began to set regulations for holiday homes and their operators.
Driven Holiday Homes, founded through a partnership between entrepreneur Khadija El Otmani and Driven Properties Managing Director Abdullah Alajaji, was one of the first operators to receive holiday home licensing in Dubai. Khadija calls short-term rentals “the best of both worlds”—balancing between hospitality and Dubai real estate. Guests can enjoy the high-end services and amenities of a hotel—concierge, room service, round-the-clock security—while bringing their own personal touch to the home. The units, which come in all kinds of designs and layouts, can be decorated and fitted according to the guest’s needs.
The short to long-term rental market is not only growing, but will also become a key factor in Dubai’s future tourism plans. Dubai’s Tourism Vision 2020 aims to welcome 20 million visitors per annum and the growing holiday homes market surely will play an important role in reaching that goal, as well as creating a new revenue stream for property owners.
With 2015 seeing the delay of multiple off-plan developments and the plateauing of market conditions, it’s most likely that the delays will continue in order to avoid oversupply in the market. These setbacks could help stabilize the market prices and avoid further drops.
As we approach Expo 2020, property consultants expect the UAE’s economy to grow steadily, likely leading to increased population, as well as foreign investment and tourism. This will potentially increase the demand for properties that are scheduled to handover in the coming years, and eventually a rise in the property market.
Since the commercial property sector has been growing steadily over the months, buyers and business owners are beginning to show interest in buildings that are highly functional and efficient. A couple of those factors include high-speed elevators, ample parking, energy efficiency, proximity to a variety of amenities and public transport.
Business owners are also concerned with the effect of the office space on the work environment and employee productivity, and therefore are seeking flexible and customizable offices with high-quality finishes.
There has been an increase in build-to-suit buildings, which is a way of leasing and occasionally selling commercial properties where the developer or landlord builds to a tenant’s specifications–with costs usually covered by the latter.
In light of the recent blaze at The Address Downtown and the major fire that gutted the Al Shamsi Building in Deira, fires have become a major concern for UAE residents living in high-rises. These are just two incidents in a list of fires that have occurred across the Emirate—The Torch in Marina, Tamweel Tower in JLT, and Regal Tower in Business Bay to name a few.
In order to prevent potentially destructive fires, there are a couple initiatives that have been put in place for residents and building managers to be more aware of fire prevention and emergency procedures, as well as increased enforcement of regulations. The Owners Associations have informed residents not to smoke shisha or have BBQ in their balconies, and gave out notices after the recent fire at the Address Downtown. The association also emphasizes that smoking is not permitted in common areas and that residents shouldn’t throw cigarettes off of balconies and windows. The building management will penalize offenders, and they might also face fines from Dubai Municipality.
Other initiatives include the Dashboard Monitoring System, Silicon Oasis Safety Measures, and DEWA Fire Prevention Week.
Click here to learn more fire prevention tips.
Driven’s View: While the Dubai property market has seen it’s ups and downs, but that only indicates that the sector is well on it’s way to maturity.
These trends are based on reports from publications such as JLL, Emirates 24/7, and Gulf News.