News Brief 05

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION NEWS BRIEF 05 SUNDAY, 04 FEBRUARY 2018 RESEARCH DEPARTMENT DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN | KSA IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2018 asteco.com ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION REAL ESTATE NEWS UAE / GCC PROPTECH: CREATING NEW STANDARDS IN REAL ESTATE SUPPLY HEADWINDS KEEP PRICES IN CHECK EGYPT TO POUR NEW HOUSING INTO SEEMINGLY SATED MARKET SAUDI REFORM HAS CONSTRUCTION SECTOR DEEPLY INTERESTED CHALLENGES GALORE FOR GCC CONSTRUCTION SECTOR LOWER RENTS BRING RELIEF FOR UAE RESIDENTS JOINT VENTURE FORMATIONS HINGE ON THE DETAILS SAUDI SHORT-TERM ECONOMIC PROSPECTS 'DO NOT LOOK BRILLIANT' DUBAI DUBAI’S DEVELOPERS EXTRACT VALUE IN SHOW HOMES LET’S NOT GET DISTRACTED BY OFFPLAN’S DOMINANCE IN DUBAI DUBAI FLOATING HOUSE BUYERS TO GET FREEHOLD TITLE THE TRENDS THAT SHAPED DUBAI REAL ESTATE IN 2017 NEIGHBOURHOOD WATCH: DUBAI MARINA DUBAI’S OFF-PLAN SALES SLIP UP IN FOURTH QUARTER OF 2017 CHINA’S WEALTH BECOMES AN X FACTOR IN DUBAI REALTY DANUBE’S OFF-PLAN SALES HIT DH820M IN 2017 REVEALED: THIS DUBAI COMMUNITY OFFERS HIGHEST RENTAL YIELD FOR APARTMENTS FIRST ZABEEL HOUSE HOTEL TO BE IN THE GREENS IS THIS DH14M VILLA IN DUBAI THE PERFECT FAMILY HOME? NAKHEEL FOURTH QUARTER NET PROFIT SURGES 58% ON DIVERSIFIED REVENUE, PROPERTY RECOVERY OFF-PLAN PROPERTY SALES IN DUBAI MAY COOL OFF THIS YEAR SMALLER DEVELOPERS GIVE DELAYED PROJECTS A NEW LEASE OF LIFE DUBAI'S POPULATION GROWTH WILL REDRESS PERCEIVED SUPPLY IMBALANCE DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN | KSA IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management | 2018 | asteco.com Page 2 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION REAL ESTATE NEWS IMPACT OF VAT LEVY MINIMAL ON DUBAI REAL ESTATE EMERGING COMMUNITIES OFFER DUBAI'S BEST RENTAL YIELDS JANUARY SEES SUBDUED PROPERTY SALES IN DUBAI DUBAI LAND DEPARTMENT IN NEW STRATEGIC LINK-UP NOT MANY OF THE SAME NAMES THIS TIME DUBAI’S PROPERTY SALES HIT SLOW SPEED IN JANUARY UAE'S AZIZI TO DELIVER DUBAI HEALTHCARE CITY PROJECT AHEAD OF SCHEDULE MIDEAST'S FIRST WELLNESS RESORT ON TRACK FOR 2020 DELIVERY ABU DHABI ABU DHABI DEVELOPERS HAVE NO OPTION BUT GO SLOW HOUSE PRICES, RENTS UNDER PRESSURE IN ABU DHABI NORTHERN EMIRATES UMM AL QUWAIN’S NEW HOMES WILL HAVE SPACE FOR YACHTS SHARJAH LANDLORDS UNDER PRESSURE TO CUT HOUSE RENTS INTERNATIONAL U.S. MORTGAGE APPLICATIONS DIPS IN LATE JANUARY SINGAPORE OUSTS CHINA AS NO 1 ASIAN BUYER OF US COMMERCIAL PROPERTY INDUSTRIAL PROPERTY AND THE BRAVE NEW WORLD OF E-COMMERCE RESIDENTIAL CO-LIVING TREND ACCELERATES IN ASIA TRAITS OF A SUCCESSFUL REAL ESTATE INVESTOR DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN | KSA DEFINING LANDSCAPES SINCE 1985 © Asteco Property Management, 2018 asteco.com Page 3 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION PROPTECH: CREATING NEW STANDARDS IN REAL ESTATE Wednesday, January 31, 2018 Fintech, health tech and insuretech are all new eras in the finance, health care and insurance markets respectively. The real estate sector has been a late bloomer relatively speaking, but proptech is now a gradually growing space and can have a huge impact on the way real estate transactions will be conducted in the future. Some technological advances are general in scope, in that at a high level they cut across several sectors, and are familiar to consumers globally. These include mortgage comparison sites, marketing platforms with links to online brokers and agents, and online real estate data analytics. All of these platforms and data help consumers decide if they wish to develop, buy, sell or let their properties. Virtual reality Imagine, however, a future where it is normal not to physically view the property but to still put down an offer to buy. A report conducted by Redfin, a US estate agency, reported that one in five had submitted an offer to purchase a property in the US without first viewing it. Admittedly, one can argue that this is how off-plan purchasing works, but the Redfin report was conducted on built properties. The survey was taken from a sample of 2,000 people, although the survey also found that in many cases the buyers knew the sellers. In the UAE, many developers offer a gallery of computerised photos of the final built product of an off-plan project. Instead, allowing a buyer to have that immersive VR experience to purchase a property is more exciting. Google’s street view certainly helps. At the time of writing, a Chinese company is offering online-to-offline property services to foreign investors to purchase property in China using virtual reality. It remains to be seen how successful this will become, but the encouraging point is the Chinese authorities are allowing the concept to be tested. Crowdfunding In the not-so-distant future, banks will no longer be the principal source of property funding. There is likely to be a shift away from the traditional lending to peer-to-peer lending. It is estimated by some of the world’s largest banks that the crowdfunding market will be reach $200 billion (Dh734.5 billion)-$250 billion by 2020 alone. Closer to home, could a properly managed crowdfunder plug the gap and allow small developers to finish their projects? Further still, how about crowdfunded mortgages? These are not new concepts per se, but would need some serious thought and approval from the local governments and authorities in the Middle East to become a reality. Blockchain It seems like everyone has now heard of blockchain and how it will bring immediacy to the real estate market. Gone will be the days when a party spends countless weeks or months undertaking due diligence on a property. With the move away from paper title deeds, paper licences, paper everything — there will be no need to meet in person or to safeguard precious documents. The introduction of blockchain to the real estate market will potentially allow a buyer, say from the UK, to review the complete pack of documents on a property’s ledger in one go, saving weeks and months. A lender, could be from the US and the property in question could be in the DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN | KSA DEFINING LANDSCAPES SINCE 1985 © Asteco Property Management, 2018 asteco.com Page 4 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION UAE. By the time the seller from the UAE wakes up in the morning, the property may have been transferred to the new buyer in the UK with an approved mortgage from the US. In September, the Ukrainian government sold seized property at an auction using blockchain. The Dubai Blockchain Strategy is in full swing itself. Only recently, the Dubai Land Department spoke excitedly about blockchain at Cityscape Global in Dubai. Let’s watch this space. 3D-printing Properties will be manufactured rather than built, which is already happening in places like China. 3D-printed buildings can offer consumers greater customisation and room for creativity. The negative impact could be the redeployment of the construction labour workforce. Perhaps such a redeployment will bring better education opportunities for the workforce, we hope. To what extent a 3D-printed building will become popular will depend on the consumer’s acceptance and experience, the quality of the finished product and the price. The technology also allows 3D-printed buildings, and even assembling flatpack buildings, Ikea style. These are just some of the examples that proptech can bring. If all of this can be done with ease and comfort from your own living room, then we may finally be able to say goodbye to the traditional real estate model of meeting in person to conduct long drawn out deals. Source: Gulf News Back to Index DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN | KSA DEFINING LANDSCAPES SINCE 1985 © Asteco Property Management, 2018 asteco.com Page 5 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION SUPPLY HEADWINDS KEEP PRICES IN CHECK Wednesday, January 31, 2018 The performance of UAE’s real estate sector is expected to remain subdued during 2018, with sales prices and rental rates more or less flatlining across the segments, say industry experts. Craig Plumb, head of research at JLL Middle East and North Africa (Mena), expects the UAE’s economy to pick up with the rate of real GDP growth increasing this year. “While this is clearly good news for the real estate industry, the market may not rebound strongly during the year as significant levels of new supply will continue to stifle any potential increases in prices or rentals,” says Plumb. Sales prices and rents in Dubai’s apartment segment recorded year-on-year declines of 4.2 per cent and 6.4 per cent respectively last year. The emirate’s villa segment also saw similar trends, with sales prices and rentals falling by 2.4 per cent and 6.8 per cent respectively during the same period, according to a JLL report. Industry players expect similar trends to continue this year, although less intense. “While I’m hoping for more positivity, sadly I think 2018 will continue to be a challenging year for real estate,” says Mario Volpi, chief sales officer of Kensington Luxury Real Estate Brokers. “I believe prices will continue to be soft in both sales and rentals, although the decline in real terms will be less dramatic than in 2017.” In the apartment segment, sales prices will continue to decline during the first half of the year, prolonging the downward trend witnessed over the previous quarters, according to Ivana Gazivoda Vucinic, head of advisory and research at Chestertons Mena.

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