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Unveiling Dubai’s Next Real Estate Gem: The Impact of ‘Palm Jabel Ali’ Development

Dubai has emerged as a captivating destination for affluent individuals globally, drawing them to acquire opulent real estate properties valued at $10 million and beyond. Fueled by an insatiable demand from high net-worth individuals (HNWIs) worldwide, the prices in Dubai’s residential market continue to expand, with prime residential prices, surging by 58.9% between Apr 2022 to Apr 2023, according to the latest report titled – Dubai Prime residential values surge by 59% by Knight Frank. This meteoric rise has propelled Dubai’s prime residential market to attain the highest appreciation rate globally which is primarily driven by record-setting prices commanded by beachfront villas.

Rise in HNWIs Increasing the Demand for Premium Properties

According to the Henley Private Wealth Migration Report 2023’, the UAE will attract 4,500 new millionaires in 2023. In total, 128,000 millionaires will relocate this year, which is 6,000 more than in 2022. The UAE is currently home to 109,900 millionaires with $1 million-plus wealth, 298 centi-millionaires with $100 million-plus assets and 20 billionaires.

The 2023 report by Knight Frank titled Destination Dubai,’ has unveiled that high net-worth individuals possess a substantial budget of US $2.5 billion earmarked for Dubai’s real estate sector this year. This follows a noteworthy spending spree of US $3.8 billion on properties valued at over US $10 million in the previous year. The report underscores the burgeoning interest of affluent buyers in premium neighbourhoods, with Downtown (comprising 37%) and Palm Jumeirah (at 30%) ranking as the preferred locales among survey respondents.

This exponential rise in the number of HNWIs and their budget on buying property in Dubai will increase the demand for property severalfold in 2023. Wealthy buyers are flocking to Dubai to buy luxury homes, primarily those situated in the city’s most sought-after districts. Most of these HNWIs are from the UK, Europe or North America and prefer to live at a premium residential location. This has been one of the biggest reasons behind the development of the unprecedented project –Palm Jebel Ali’.

What is Palm Jebel Ali?

Dubai, known for its ambitious and awe-inspiring projects, has once again captured the world’s attention with the announcement of the Palm Jebel Ali development. The visionary project, twice the size of its predecessor, Palm Jumeirah, is part of the Dubai 2040 Urban Master Plan and aims to solidify Dubai’s position as the most beautiful city in the world. 

Under the guidance of HH. Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, Palm Jabel Ali promises to redefine waterfront living, positively impacting real estate sales, enhance the tourism sector, and contribute to Dubai’s sustainable growth.

In a momentous announcement, HH Sheikh Mohammed shared his excitement about the new plan for Palm Jebel Ali. Spanning an expansive area of 13.4 square kilometres and offering an impressive 110 kilometres of coastline, this mega development will be home to over 80 hotels and resorts. The project sets the stage for an unmatched luxurious lifestyle experience, furthering the city’s objective of becoming a premier global destination for both businesses and tourism.

Palm Jebel Ali aims to raise the bar for waterfront living, incorporating extensive green spaces and unique waterfront experiences. It is estimated to accommodate approximately 35,000 families, providing unrivalled luxury beachside living. The project aligns with Dubai’s Economic Agenda D33, which strives to enhance the city’s status as a leading global hub.

A Catalyst for Sustainable Growth

Incorporating sustainable practices, Palm Jebel Ali stands as a model for contemporary urban planning. The development integrates renewable energy resources, making it nearly self-sufficient in terms of power generation. Around 30% of its energy requirements will be obtained from renewable sources, highlighting Dubai’s commitment to a greener future.

Nakheel to Transform the Ambitious Project into Reality

The realization of this ambitious project is in the hands of Nakheel, a prominent Dubai-based real estate master developer. Under the guidance of Sheikh Mohammed, Nakheel envisions transforming the landscape of the Emirate and establishing Palm Jebel Ali as a world-class lifestyle destination.

The Impact of ‘Palm Jabel Ali’ on the Real Estate Sector

The ambitious project of Palm Jebel Ali will act as a catalyst in accelerating the growth of the real estate sector severalfold. Let’s explore how this mega development can influence the property market and reshape the real estate landscape in the city.

1. Boost the Demand for Luxury Properties

Palm Jebel Ali’s visionary concept and luxury lifestyle offerings are expected to attract high-net-worth individuals and investors from around the world. The project’s unique beachside living and high-end amenities are likely to drive the demand for premium properties in the surrounding areas.

2. Increase  Property Prices and Rents

As the development progresses and gains global attention, property prices in and around Palm Jebel Ali are likely to surge due to increased demand. This revolutionary project will explore new & lucrative investment opportunities, which will attract investors from across the globe to start their businesses and buy property for residential purposes. This will lead to a substantial increase in the prices and rents for both residential and commercial real estate. 

3.  Increase Tourism Leading to High Demand Will Boost the Short-Term Rental Market

With the addition of 80 hotels and resorts, Palm Jebel Ali will enhance Dubai’s allure as a tourist destination. This surge in tourist influx will also stimulate the short-term rental market and will offer property owners an opportunity to generate attractive rental yields.

4. Enhance the Waterfront Living Experience

The project’s introduction of about 110 kilometres of coastline to Dubai will create new waterfront living experiences. Such developments have historically been highly sought after by buyers which will further drive the demand for properties with stunning waterfront views.

5. Boost  Infrastructure Development 

Palm Jebel Ali is known as a centrepiece in Dubai’s urban master plan. The development will catalyse the expansion of infrastructure and amenities in the area, benefiting the entire real estate ecosystem and fostering the growth of nearby residential and commercial projects.

6. Diversify Property Offerings

The project’s scale and vision will necessitate a diverse mix of property types, catering to various segments of the market. From luxurious villas and penthouses to upscale apartments, the development will diversify the real estate offerings in Dubai, accommodating the preferences of different buyers and investors.

7. Attract Global Investors to Dubai’s Real Estate

As Palm Jebel Ali gains international attention, it is likely to attract foreign investment into the Dubai real estate sector. International buyers and developers seeking opportunities in a thriving market will be drawn to this mega project, fostering increased collaboration and investments.

8. New Growth Corridor Will Expand the Development of Properties

Palm Jebel Ali’s strategic location will create a new growth corridor in Jebel Ali, offering immense potential for the development and expansion of new residential and commercial projects. This will lead to the emergence of new communities and will create promising prospects for real estate developers.

9. Create the ‘Spillover Effect’ in the Surrounding Areas

As the development unfolds, the neighbouring areas of Palm Jebel Ali will experience a spillover effect. Enhanced infrastructure, improved amenities, and a prestigious neighbourhood will uplift the appeal of these regions, reflecting positively on their real estate markets.

10. Shape Dubai’s Real Estate Landscape

Palm Jebel Ali’s successful realization will cement Dubai’s reputation as a global hub for innovative and visionary real estate projects. It will set new standards for urban development, influencing future projects and shaping Dubai’s real estate landscape for years to come. Palm Jebel Ali’s grand vision and strategic location have the potential to revolutionize Dubai’s real estate sector. As it unfolds, the project is expected to attract investors, stimulate property demand, and accelerate infrastructure development, establishing itself as a game-changer in the city’s property market.

The Role of the Owners’ Committee in the Maintenance & Repair of the Community

Owners’ Committee (OC) is one of the most crucial bodies in ensuring effective and efficient management of the community. It is also responsible for performing timely repairs to resolve any defects or structural issues in the building which can cause serious damage. Owners’ Committee (OC) acts as a representative in safeguarding the interests of owners and ensuring the proper management of jointly owned properties (JOP). 

Appointment and Membership

According to  Dubai Law 6 of 2019, the Owners’ Committee must be appointed by RERA and consist of 2 to 9 members, including a Chairman and Vice Chairman. Owners’ Committee selects a Chairman to interact with the management company and RERA, adhering to legal terms and conditions. OC powers and tasks align with Law No. 6 of 2019 and associated regulations. 

Key Responsibilities of the Owners’ Committee

The Owners’ Committee is primarily responsible for the administration, operation and management of a project with the appointed RERA-licensed and approved management company (the ‘Managing Agent’).  According to Dubai Law 6 of 2019 also known as the ‘Jointly Owned Property Law,’, the Owners’ Committee will exclusively be responsible for – 1.

1. Verification of the Management Entity

Owners’ Committee is responsible for verifying that the Management Entity undertakes the management, operations, maintenance, and repair of the common areas.

2. Reviewing Maintenance Budgets

    The Owners’ Committee is responsible for reviewing, and providing the necessary recommendations on the annual budgets for the maintenance of the Jointly Owned Real Property; and for this purpose, requests the Jointly Owned Real Property financial reports.

    3. Recommending Ways to RERA to Overcome Management Challenges

    Owners’ Committee is responsible for discussing the obstacles and difficulties related to the management, operations, maintenance, and repair of common areas; and submitting the necessary recommendations on the same to the Management Entity or RERA, as the case may be.

    4. Notification of Structural Defects

    Owners’ Committee is also accountable for notifying the Management Entity or RERA of any defects in the structural parts of the Jointly Owned Real Property; or any damage to, or defect in the common areas that require urgent repairs.

    5. Maintaining Safety and Environmental Regulations

    Owners’ Committee submits any proposals regarding the method of use of common areas; or regarding amendment of the Building Management Regulation to the Management Entity, in which case the amendment must be approved by RERA. They also coordinate with RERA, the Management Entity, or the Competent Authority with respect to any safety, environmental, security, or other matters related to the Jointly Owned Property. 

    Kaizen AMS’ 4.4 Google Review Score: A Testament of our True Commitment to Utmost Resident Satisfaction 

    In the realm of property management, resident satisfaction is paramount. Happy residents not only ensure consistent rental income for the property management companies but also have a profound impact on the occupancy rate and on the brand reputation of the organizations.
    One of the key indicators that determine the triumph of a property management company in this digital age is its Google Reviews score. A high score acts as a bragging right and an indication of the quality of the services offered by the company.

    What are Google Reviews?

    Google Reviews is a service offered by tech giant, Google that enables businesses to gather website reviews and other useful information to stand out in the competition. To join, a Google Merchant account is necessary. Google facilitates this process by soliciting feedback from your customers via email and inquiring about their interactions with your brand. Those who are willing to participate receive a brief survey. The feedback and ratings garnered from these surveys can be showcased on the company’s website and various marketing channels.

    Kaizen AMS – a Pioneer in Excellence in Google Reviews

    Leveraging its technology-enabled approach, unparalleled management and sheer passion of our employees toward our purpose statement of ‘Creating Memorable Experiences & Communities’, Kaizen AMS has been maintaining a Google Review Score of 4.4 out of 5 which is almost 2,651 reviews (as of Sept. 26, 2023), making it one of the highest score among all the Propertyy Management firms in Dubai.

    The Google review scores of some of the key competitors of Kaizen AMS are as follows –

    Competitor 1 – 2.3 Star
    Competitor 2 – 3.5 Star
    Competitor 3 – 2.7 Star
    Competitor 4 – 4.1 Star
    Competitor 5 – 3.9 Star
    Competitor 6 – 2.3 Star

    Top 7 Ways Kaizen AMS Thrives in Customer Excellence

    Kaizen AMS was founded with the main purpose of overcoming the shortcomings in the management of the real estate sector.

    1. Faster and Professional Response

    The key factor which determines the success of an organization in terms of Google reviews is its ability to swiftly respond to them. Receiving and managing customer reviews is paramount for a business’s success. The studies conducted globally reveal that replying within 48 hours is acceptable, and within 24 hours is the ideal timeframe.
    At Kaizen AMS, we actively monitor and manage our online reputation by focusing on responding promptly to both positive and negative reviews. We always aim to respond to the Google reviews as quickly as possible. It takes us 40 and 60 minutes to respond to the positive reviews and between 2 and 4 hours to respond to negative reviews. This means that going by the average ideal time of 24 hours, Kaizen AMS is 36 to 72 times faster in replying to positive reviews and almost 6-12 times faster in replying to Negative reviews.

    A vast amount of credit for this incredible performance goes to our ‘Customer Excellence Team’. Kaizen AMS’ Community Managers also personally look into customer grievances to ensure it is resolved far before the lead time. Our unwavering commitment towards serving our stakeholders with utmost professionalism lies in the effective handling of negative reviews with a robust commitment to finding a solution to their concerns as quickly as possible. This approach has always worked wonders in converting dissatisfied residents into delighted ones. Simultaneously, Kaizen AMS’ approach to recognising and expressing gratitude for the customers posting positive reviews has also strengthened our bond of appreciation.

    2. Maintaining Transparent Communication

    Kaizen AMS’ success centres around open and transparent communication, underpinned by a strong focus on technology utilization for resident engagement. To take the bar of customer excellence to the next level, Kaizen AMS introduced a revolutionary ‘WhatsApp Chat Feature’ to provide round-the-clock live support across their 130+ managed communities. The WhatsApp Chat Feature has enabled Kaizen AMS to achieve an impressive 99.4% query resolution rate and significantly reduce response times to 10-15 seconds.

    The automation of our operations through ChatGPT has streamlined over 85% of routine tasks and enabled our team to provide swift responses to tenant inquiries thus facilitating faster decision-making for property managers. This automation, combined with tools like “Book a Video Call,” a toll-free number, and an intuitive dashboard, enhances the overall resident’s experience and ultimately aligns with Kaizen AMS’s commitment to creating memorable experiences for all of our stakeholders.

    Emphasizing maintaining transparent and effective communication has enabled Kaizen AMS to be at the pinnacle and an industry leader in terms of tenant satisfaction, occupancy rates, cost savings, and reducing energy consumption and carbon emissions.

    3. Effective Implementation and Benchmarking Strategy

    Kaizen AMS’ implementation and Benchmarking strategy revolves around our core value of “Dive Deep to the Root Cause”. We always encourage our employees to not leave any stone unturned when it comes to serving the customers.
    Kaizen AMS’ implementation strategy encompasses – monitoring and reviewing the customer reviews & feedback based on our internal benchmarking standards, digging deep into their complaints, proactively anticipating requests, staying up to date on happenings, and most importantly, getting to know them. We also schedule monthly interviews with the residents to capture their responses and feedback and to find out what they expect in the communities. Our team also evaluates the customer’s feedback by constantly requesting feedback (emails, phone calls, and face-to-face), sending quarterly surveys to our communities, and developing overall close relationships with our customers.

    Kaizen AMS’ data analysis team conducts an in-depth analysis of the responses and suggests to management what new initiatives they must come up with to ensure the utmost resident delight and efforts are made to implement the resident’s feedback within a time frame of 24-72 hours.

    4. Streamlined Maintenance Request System

    Efficient maintenance request services greatly influence resident satisfaction. Kaizen AMS develops and deploys innovative & user-friendly portals, dashboards, and applications to enable residents to report maintenance, repair, or snagging issues and track their status anytime. This approach significantly contributes to Kaizen AMS’ high Google Review score, as residents are more likely to express contentment through 5-star reviews when their concerns are promptly resolved in line with their expectations.

    5. Proactive Property Inspections

    Proactive property inspections play a pivotal role in averting potential crises by detecting and resolving issues before they escalate. Kaizen AMS conducts timely & consistent inspections to prevent any unforeseen incidents and preserve a secure and pleasant living atmosphere. Kaizen AMS’ 40,000+ residents respect and value our proactive property inspection efforts as they display our true commitment towards their safety and well-being and frequently respond with positive or 5-star reviews.

    6. Organizing Community Engagement Events

    One of the most distinctive factors which make Kaizen AMS a top community management firm is that we place a strong emphasis on community engagement events. This aligns with their core purpose of “Creating Memorable Experiences and Communities.” Our 130+ managed communities are home to 40,000+ residents from 50+ nationalities and 100+ cultural backgrounds and Kaizen AMS is committed to celebrating every festival & event with equal enthusiasm to cherish the richness of diversity.

    We organize a vast range of community engagement initiatives including –Eid, Valentine’s Day flower gifting, Yoga Day, Mother’s Day, Diwali, Christmas, Halloween, virtual quizzes, and Krafty Kids to improve the resident’s experience. To ensure the success of their community events, Kaizen AMS collaborates with top event management companies worldwide and employs skilled photographers to capture the moments, creating a thriving and engaged community environment. Residents share their memorable experiences on various internet and social media channels and also reward Kaizen AMS with 5 Star Reviews on Google which enables us to maintain a colossal Google Review Score of 4.4.

    7. Employee Coaching and Development Programs

    At Kaizen AMS, we firmly believe in the statement that ‘best care for the customers starts with the best care for employees. A knowledgeable staff is a foundation for creating an unforgettable living experience and ensuring utmost client delight. Thus, Kaizen AMS spends a significant amount of funds on providing world-class training and coaching sessions. Every Kaizener is mandated to complete 40 hours of training sessions every quarter which are specifically tailored to cater to the specific role’s requirement. This approach ensures that employees meet industry standards for optimal resident service. Additionally, the company uses Kahoot quizzes and games to keep employees updated on company developments and make learning enjoyable.

    ChatGPT: The Game-Changer in Real Estate Innovation

    ChatGPT has taken the world by storm and quickly became a global success. The latest addition to the GPT series of massive language models, ChatGPT from OpenAI, has generated a lot of excitement. As technology advances, it’s not only e-commerce that is embracing the use of chatbots and artificial intelligence (AI). This revolutionary app is transforming every industry. 

    Real Estate developers, management companies, and owners are starting to see the benefits of ChatGPT and are beginning to implement it into their business operations. ChatGPT has come as a blessing for the real estate sector. Since its launch in November 2022, this app has played a pivotal role in improving the operational efficiency of every process such as – resident service, data analysis, document creation, and decision-making. This has resulted in improvements in buyer/resident satisfaction, faster sales of the units, improved occupancy rate, and more revenues for the developers.  

    What is ChatGPT?

    Launched on 30 November 2022, ChatGPT is an artificial intelligence Chatbot developed by OpenAI(a renowned artificial intelligence research laboratory). ChatGPT is a Natural Language Processing (NLP) tool driven by AI technology. It generates natural and fluent text based on given prompts, making it a versatile tool to accomplish most of the administrative and business development tasks for the real estate sector. 

    Within just 6 months of its launch, ChatGPT has shown great potential. According to the latest article by Polymer Search, as of April 2023, ChatGPT is used by over 100 million people worldwide. It gained over a million users within a week of its launch and has processed around 300 billion words on approximately 175 billion parameters. ChatGPT receives around 10 million daily queries and is forecasted to earn revenue of USD 200 million in 2023 and about USD 1 billion by the end of 2024. Realizing the massive potential of ChatGPT, technology giants are investing significantly in its developer, OpenAI. Recently, Microsoft Corp. invested USD 10 billion in OpenAI to get access to some of the most popular and advanced artificial intelligence systems.

    Implementation of ChatGPT in Real estate Operations

    ChatGPT is touching the lives of every real estate stakeholder. With the use of ChatGPT, Property management firms are automating their customer service processes. They are deploying ChatGPT to answer common questions, provide property information, and even schedule property viewings. This allows them to devote time to more strategic tasks like reducing operational costs, creating community guidelines, designing plans to boost community engagement and resident satisfaction, focusing on Environmental, Social, and Governance (ESG), Sustainability, negotiating contracts and effective management of property portfolios. Management companies are also leveraging ChatGPT to streamline their operations and offer more personalized experiences to clients. 

    As the adoption of AI continues to grow in the real estate industry, it’s likely that ChatGPT and other AI-powered tools will become even more integral in managing a diverse range of its operations such as – customer service, marketing, content creation, and data analysis. Today, more and more real estate developers are adopting ChatGPT and we can expect to see even greater impacts on the workplace in the future. ChatGPT has already outsized the impact on real estate and the extent of its potential application still remains unmapped.

    AI technology is indeed enabling the real estate sector to prepare comprehensive industry reports and empowering decision-makers to analyze complex data quickly. With the assistance of AI, real estate professionals can gather and process vast amounts of data related to property performance, market trends, and buyers’ preferences. This enables them to make informed strategic decisions and stay ahead in a competitive market.

    Additionally, AI-powered chatbots like ChatGPT are assisting real estate professionals in content creation and marketing efforts to reach a wider range audience and engage effectively with potential buyers and sellers. ChatGPT provides personalized recommendations; answers common questions, and offers 24/7 support to enhance the overall customer experience and increase customer satisfaction.

    Top 10 Ways ChatGPT is Positively Impacting the Real Estate Sector

    ChatGPT is viewed as the most powerful tool in improving the efficiency of the real estate industry. It has assisted the sector in automating most of the operational tasks to provide faster responses to resident queries with ease and 100% accuracy. 

    Here are the Top 10 Ways ChatGPT is Positively Impacting the Real Estate Sector –

    1. Simplifying the Communication Process with the Stakeholders

    ChatGPT is being used by real estate professionals to provide round-the-clock customer services to the residents, real estate agents and representatives. It assists real estate developers and management companies in explaining rental or purchase processes and providing general guidance to potential buyers. 

    ChatGPT is being programmed to answer all the queries and Frequently Asked Questions (FAQs) of the residents related to billing, service, sales, financing, leasing, buying or selling a property, documents required documents, and complaints to name a few. ChatGPT has proved to be a valuable tool in enhancing customer support by enabling the real estate sector to provide prompt responses to their customer’s queries. 

    2. Lead Generation and Business Development

    ChatGPT emerges as a powerful catalyst, propelling the real estate industry forward by facilitating expedited access to critical information for stakeholders. Seamlessly integrated into real estate websites and applications, this advanced AI technology empowers potential buyers and sellers to effortlessly acquire instant details about properties, ranging from essential elements like pricing, location, and features, all without the requirement of human intervention. The inherent ability to provide prompt responses to customer inquiries not only piques the interest of prospective property buyers but also fosters their inclination to revisit the platform. By introducing an unparalleled level of convenience, speed, and efficiency to the process, ChatGPT’s invaluable assistance not only drives customer engagement but also cultivates an environment conducive to heightened lead generation, sales conversions and business development which fuels the company’s growth & expansion.

    3. Making Interactions with Residents More Personalized

    Artificial Intelligence (AI)-powered chatbots like ChatGPT have the ability to generate unique patterns based on client behavior. Furthermore, when trained on individual interactions and preferences, ChatGPT can provide personalized and tailored outcomes. Research indicates that leveraging AI in the form of chatbots has emerged as an effective solution for real estate businesses, as it provides a swift and more personalized response to customers. This smart utilization of AI-powered chatbots not only enhances operational efficiency but also has a profound impact on customer satisfaction.

    4. Overcoming Language Barriers

    The UAE is home to more than 200 nationalities with native Emiratis only accounting for 10% of the overall population. This unique demographic composition also creates language challenges as not everyone knows Arabic or English. 

    As a language model, ChatGPT is trained to perform various natural language processing tasks such as – language translation, summarization, question answering, text classification, and more. It is capable of translating the content into 95 languages. ChatGPT leverages deep learning techniques and large datasets to understand the context and generate relevant responses. The model has been trained on a vast amount of text data and can recognize patterns and relationships between words and phrases to generate coherent and contextually relevant responses. With its capabilities, ChatGPT is assisting the real estate sector in various tasks related to text and language processing to overcome language barriers.

    5. Unconventional Analytics Capabilities to Facilitate Business Decisions

    Property development projects require extensive research and maintenance, which can be time-consuming and expensive. ChatGPT’s analytical capabilities can also play a decisive role in assisting real estate developers in performing data analysis, gathering crucial insights on upcoming market trends and analyzing buyer behaviour & preferences. This will assist the real estate leaders in strategic decision-making. ChatGPT is also equipped with advanced analytics features to reduce the time and resources spent on potential developments. It can also analyze the sentiments of the text to determine whether it is positive, negative, or neutral.

    6. Writing Business Proposals and Marketing Content 

    ChatGPT is equipped with AI technology’s NLP component, which assists Business Development (BD) and Marketing teams in analyzing transaction-related business proposals for errors. It also enables them to transform documents into useful information which reduces the time spent on due diligence in real estate purchases. ChatGPT has made it much simpler for the BD teams to analyze enormous amounts of competitor and industry data involved in real estate business deals.

    Real estate executives often struggle in creating engaging marketing content due to time constraints and writer’s block which often leads to missed business opportunities, lost leads and lower search engine rankings. The implementation of ChatGPT empowers them to generate highly customized, crisp and SEO-friendly marketing content within a few seconds. This not only boosts the lead generation process but also has a profound impact on the company’s brand image and reputation.  

    7. Automating Administrative Tasks

    Within a short span, ChatGPT has been instrumental in automating a vast majority of administrative tasks which used to consume a lot of man-hours.  ChatGPT can handle routine inquiries and tasks from both internal staff and external stakeholders. It can provide information about office hours, address common queries related to administrative processes, and direct individuals to the appropriate department or personnel. ChatGPT can also help in scheduling appointments, managing calendars, and sending reminders to ensure efficient coordination of meetings and events within the Administration department. It can also assist in rescheduling or cancelling appointments whenever necessary.

    ChatGPT also allows the administration department to organize the documents, and retrieve, and the extraction of general information. It can assist in locating specific files, and offer guidance on document submission procedures. ChatGPT can help in training new administrative staff by providing information on standard operating procedures, company policies, and best practices. It can also serve as a resource for ongoing knowledge transfer and continuous learning within the department.

    By leveraging ChatGPT’s capabilities, the Administration department in a real estate company can enhance efficiency, streamline communication, and improve overall productivity in various administrative tasks.

    8. Generating Accurate Valuations for Properties

    The implementation of ChatGPT algorithms allows research teams to generate accurate valuations for properties. ChatGPT has advanced capabilities to analyze vast amounts of data to quickly provide comprehensive insights and predictions. This assists real estate professionals in accurately analyzing property values and upcoming market trends. The implementation of ChatGPT can improve the overall accuracy and efficiency of the real estate industry and lead to better outcomes for buyers, sellers, and investors.

    9. Improved Residence Experience

    ChatGPT can retrieve vast quantities of diverse information and solutions much faster than manual methods. This assists real estate industry leaders in swiftly analyzing the performance and taking timely actions to meet the resident’s expectations and foster efficiency in the process.

    10. Estimating ROI on the Property to Make Informed Investment Decisions

    ChatGPT has proven to be instrumental in assisting real estate investors in estimating potential returns (ROI) associated with real estate investments. It also serves as a resourceful assistant in helping users calculate the anticipated financial outcomes of property ventures. Moreover, users frequently rely on ChatGPT to generate comprehensive tables and charts that illustrate long-term investment scenarios. By inputting various variables such as property price, rental income, expenses, and market trends, users can obtain a clearer picture of how different factors might influence their investments over time. This way ChatGPT is empowering real estate investors to make informed investment decisions.

    8 Ways Residents Can Protect Themselves from Cybercrimes 

    The last half-decade has witnessed a colossal rise in Cybercrimes across the globe. Right from a Fortune 500 organization to a small-scale business to a consumer, everyone has faced the brunt of cybercrime in some way or another. This has not only cost the companies a fortune in terms of financial losses but has also put their brand value and reputation in jeopardy.  

    As per the latest studies conducted by Cybersecurity Ventures, Cybercrimes are predicted to cost the world US $8 trillion in 2023. If it were measured as a country, then cybercrime would be the world’s third-largest economy after the U.S. and China.  The studies also predict that global cybercrime costs to grow by 15% per year over the next five years, reaching $10.5 trillion USD annually by 2025, up from US $3 trillion in 2015

    Common Cyber Crimes Residents Must be Beware of 

    The realm of cybercrime encompasses tactics such as phishing, business email compromise, and other cyber-attacks wherein criminals adopt disguises to access sensitive information. This digital extension of traditional crime targets personal financial data, often involving high levels of sophistication by individual or organized cyber criminals. Techniques employed are varied; some operate phishing scams to cast wide nets, relying on volume, while others focus on high-net-worth individuals, investing substantial time in profiling targets based on public and private data. This entails using hacked credit information, property records, and social media details to orchestrate asset theft. 

    A recurring pattern involves sending deceptive emails containing links or attachments that, when engaged, infect the victim’s computer with malware. This malware can be exploited to pilfer login credentials or control the victim’s computer remotely, allowing unauthorized entry to financial accounts for profile changes or fund transfers.

    How Can Residents Mitigate the Cybercrime Risk?

    Cybercrimes have witnessed a substantial increase across the built environment in the last decade. They have adversely impacted the lives of every real estate stakeholder. Thus, it is pivotal to remember these 8 points to avoid falling prey to cybercrimes.

    1. Use a VPN with a Strong encryption password

    Starting with a robust encryption password and a virtual private network (VPN) is crucial for online security. A VPN encrypts your device’s traffic and safeguards it from cybercriminals. Even if they breach your connection, only encrypted data would be intercepted. It is always advisable to use a VPN on public Wi-Fi networks to ensure protection while browsing.

    Your online security is paramount. We recommend never sharing your passwords as Kaizen AMS will never request this sensitive information. Always check the sender’s email address, which should only come from kaizenams.com. If you receive emails about new accounts or bank details, contact 800-KAIZEN or community@kaizenams.com for verification. It is pivotal to stay vigilant and protect your personal information.

    2. Allocate a Dedicated Device for Financial Transactions

    To prevent any cybercrime related to financial transactions, residents must assign a dedicated device solely for the purpose of financial transactions (i.e., rent payments, service charges, payment of DEWA bills, and other invoices) to minimize the exposure to malware and breaches.

    3. Avoid Phishing

    The report by Deloitte reveals that 91% of all attacks begin with a phishing email to an unsuspecting victim. On top of that, 32% of all successful breaches involve the use of phishing techniques. Residents must refrain from accessing financial or e-commerce sites through email links. Instead, they must use saved links and confirm secure connections starting with https. to verify the requests for money transfers by phone.

    4. Social Engineering 

    It is of paramount importance to secure personal and private information, as cybercriminals can trace data points through social engineering. Residents must limit sharing private and confidential information like their mother’s maiden name or pet name on social media as this could expose answers to common security questions. 

    Social threats contributed to almost a third of confirmed data breaches, primarily through phishing (92% of social-related attacks). Attackers use deceptive emails with malicious attachments or links to access sensitive data, like banking credentials and trade secrets. Vigilance is key to preventing such breaches and safeguarding critical information from spear phishing and related tactics.

    5. Installing Security Software on Smartphones

    With the proliferation of sensitive data stored on mobile devices and the growing trend of using them for tasks like online banking, the occurrence of new mobile malware variants has surged exponentially in the last few years. However, users continue to overlook safeguarding their devices against these threats. It is crucial to equip mobile devices with security software offered by reputable providers, regularly updating this software. This proactive approach is imperative to counter the rising risk of mobile malware and ensure the protection of sensitive activities conducted on these devices, such as – online banking.

    6. Create Distinctive User IDs and Activate 2FA

    Residents must create distinct user IDs, and passwords, and activate two-factor authentication (2FA) uniquely for each online portal they access to add a layer of protection against potential breaches. This multi-tiered strategy will significantly bolster the defence mechanisms against various forms of cyberattacks. This additional security layer also enhances the level of safeguarding, elevating the overall security posture and deterring unauthorized access.

    7. Regularly Updating the Systems

    Residents must regularly update the devices and software to evaluate and address any vulnerabilities. They must set up regular updates and download legit antivirus software. Furthermore, residents must back up data frequently to thwart ransomware attacks.

    8. Avoid Using Public Wi-Fi

    Residents should establish secure home Wi-Fi networks and must steer clear of public Wi-Fi networks due to potential vulnerabilities. Public Wi-Fi networks often lack encryption and can expose your data to malicious actors. When travelling, it is prudent to opt for a paid hotspot provider to maintain secure access. By implementing robust security measures for your home network, residents can create a shield against unauthorized access and potential breaches. Public Wi-Fi networks often lack encryption and can expose your data to malicious actors.

    ‘From Investment to Innovation’: How the ‘Golden Visa Programme’ is Transforming the Real estate Sector?

    In the last four years, Dubai’s property market has experienced remarkable growth which was greatly influenced by the implementation of the Golden Visa. In 2019, the UAE government introduced the Golden Visa Programme, a long-term visa system aimed at attracting foreign residents to contribute to the country’s economy and society. By offering an extended and flexible visa option, the UAE aims to attract individuals who can bring expertise, investment, and talent to the nation, fostering growth and development in various sectors. 

    The Golden visa has come as a ‘blessing in disguise’ for those who were in search of a better future abroad. Many perceive that the Golden visa has come as a ray of hope for global investors and working professionals in light of several developed nations like the US, UK and the EU phasing out or tightening their residency and work visa programs.

    Golden visa has simplified the process for investors and residents to acquire long-term residency through property investments. Consequently, there has been a significant increase in the demand for Golden Visas. 

    What Makes ‘Golden Visa’ Unique?

    The ‘Golden Visa’ is a highly sought-after long-term residence visa that offers a range of exclusive benefits to foreign talents looking to live, work, or study in the United Arab Emirates. 

    1. No Need for Sponsorship

    One of the key advantages of the Golden visa is that it eliminates the need for a sponsor, providing individuals with greater independence and flexibility in their professional pursuits. Golden Visa holders can sponsor family members, including parents, spouses and children of all ages. Additionally, there is no limit on the number of domestic helpers that can be sponsored, further facilitating a comfortable and convenient lifestyle.

    3. Privilege of Staying Outside the UAE for Extended Periods

    Golden visa holders are granted the privilege of staying outside the UAE for extended periods, exceeding the usual six-month limit, without jeopardizing the validity of their residence visa. This is particularly advantageous for international individuals who may need to travel frequently for work or personal reasons.

    Criteria for Real Estate Investors

    According to the UAE government website, if an investor owns one or multiple properties, he/she can be eligible for a 5-year Golden Visa, which is renewable under the same conditions and without a sponsor. 

    The requirements for this type of visa include:

    • Provide a letter from the Land Department of the relevant emirate confirming ownership of one or more properties with a total value of at least AED 2 Million.
    • Alternatively, purchasing a property with a loan from specific local banks that have been approved by the competent local entity.

    The UAE has recently reduced the minimum property investment required to qualify for the Golden Visa. The new regulations no longer specify the type of property transactions eligible for the visa, whether they are off-plan, ready, purchased with a mortgage, or paid in cash. 

    Process

    The process to apply for a Golden visa is very simple. All the real estate investors need to do is follow the four steps below:

    Step 1: Visit one of DLD’s Service Centres

    Step 2: Submit the necessary documents and pay the applicable fees

    Step 3: Undergo a medical examination at the designated centre. 

    Step 4: Have the Golden Visa stamped on your passport

    Documents Required to File for Golden Visa

    Required documents for the application include:

    • Passport
    • An electronic copy of the title deed certificate
    • Passport-size photo
    • Valid health insurance
    • Original Emirates ID

    By providing these documents and following the application process, real estate investors can apply for a Golden Visa through property investment.

    The Impact of Golden Visa on the Real estate Sector

    The launch of the Golden Visa has made Dubai’s real estate sector more attractive than ever for global investors and has substantially accelerated the demand to buy property in the city. This is very much evident from the colossal increase in the real estate transaction year-on-year. 

    1. Exponential Rise in Real Estate Transactions Since 2019

    Within a few months of its launch in 2019, Property sales transactions in Dubai hit an 11-year high, recording a growth of 20% compared to 2018. This positive trend continued in 2020, 2021, and 2022. Despite the global economic slowdown in 2020 due to COVID-19, Dubai’s real estate sector recorded 51,414 transactions representing a value of over AED 175 billion, according to the annual transaction report issued by the Dubai Land Department (DLD). The success story continued in 2021 as well with Dubai’s real estate market witnessing 84,772 real estate transactions valued at AED 300bn in 2021 – a 65% growth in the number of real estate transactions and a 71% increase in value compared to 2020. 

    In the year 2022, Dubai’s real estate surpassed all its previous records and recorded real estate transactions worth AED 528 billion in 2022which is the highest figure ever. This was a 76.5% increase from 2021 according to the Government of Dubai Media Office. These figures reflect the positive impact of the Golden Visa program on property sales and its role in amplifying the performance of Dubai’s real estate sector.

    2. Increased Demand for Holiday Homes and Short-term Rentals

    Dubai’s Golden Visa program has not only created a staggering demand for Residential and Commercial real estate but also for holiday homes and short-term rentals. There has been an influx of visitors staying in Dubai on a short and mid-term basis which is generating substantial revenues for the real estate sector. Golden visa has also accelerated the demand for ‘second-home’ admirers.  Freelancers, remote workers, and entrepreneurs always prefer a “home away from home” experience which makes short-term rentals their preferred choice. Short-term rentals offer flexibility and stability, with fully furnished accommodations and amenities that enable digital nomads to maintain their preferred lifestyle while working remotely. 

    3. Incentivise the Tenants to Buy the Property

    The length of the residency period in Golden Visa also incentivizes real estate tenants to consider buying a property instead of continuing to rent. Over a period of several years, the cumulative rent payments can approach the cost of purchasing the property itself. This makes owning the unit a more financially attractive option, especially considering that real estate is often seen as a good long-term investment. Furthermore, the option of obtaining a dedicated loan from specific UAE banks for purchasing a property simplifies and expedites the buying process. This can be advantageous for investors who may not have the full amount required for an outright purchase but still want to take advantage of the benefits associated with property ownership and the Golden Visa.

    Why ‘Rent-to-own units’ Option is Gaining Ground among Property Buyers?

    ‘Rent-to-own-units’ offerings are gaining ground in Dubai like never before. However, there is still a lot of confusion surrounding this concept. Developers often come up with rent-to-own options when the supply of the property exceeds its demand. They want to use rent-to-own as a second option to sell the property in order to move the stock, which is more common in projects located far from the city.

    What is ‘Rent-to-Own Units’?

    In simple terms, rent-to-own properties involve the buyer purchasing the property from a developer by paying on a monthly, quarterly, or annual basis, as specified in the agreement. 

    Rent-to-own Unit is a property arrangement which enables individuals to lease a unit for a specific time with the option to buy it later, where the rental payments act as a down payment. The agreement is made between the buyer and developer, operating under tenancy laws in the UAE. This option appeals to aspiring homeowners in the UAE. The developer and buyer must agree on the ownership timeline, which can extend up to 20 years, and the rental amount during this period. The upfront payment is typically around 5% or less, eliminating the need for a mortgage with a 25% down payment. Though rent may be higher than market rates, it offers convenience for buyers struggling to save for a deposit.

    Rent-to-own unit agreements are completely legal. Dubai Land Department (DLD) has launched a rent-to-own service through its portal, which is the registration of a specific title of deed to provide a clear legal framework to facilitate such transactions. DLD has issued guidelines and fees related to registration, financing, transfer, and cancellation of rent-to-own contracts. While there are established guidelines, it’s worth noting that the rent-to-own schemes in practice have been individually developed to suit each specific case.

    ‘Rent-to-Own Units’ – A Faster Way to Become a Homeowner 

    There has been a change in consumer buying behaviour towards ‘Rent-to-own’ units in the last few years The 2022 Annual Market Watch Reportby Property Finder finds out that consumer buying behaviours have been rapidly evolving towards more long-term investments, with tenants preferring ownership over rental properties which is majorly driven by the surge in average market value by 25%.

    Agreements Available in ‘Rent-to-own units’ 

    The two available agreements in ‘Rent-to-own units’ includes – a.) Possibility to Purchase  b.) Purchase Agreement.

    a.) Possibility to Purchase: In this arrangement, the buyer pays an ‘option fee,’ a mutually agreed percentage of the purchase price, securing the right to purchase the property in the future. If the purchase isn’t pursued, the option fee is forfeited. This approach allows for careful consideration of property ownership before committing, acknowledging its significance.

    b.) Purchase Agreement: All terms are mutually agreed previously with the buyer and developer deciding on a fixed purchase price or choosing to determine the price with a future valuation at an agreed date.

    Which Type of Properties is Popular in ‘Rent-to-own’ Option?

    Some of the most popular properties in rent-to-own arrangements are single-family homes or townhouses. Buyers are typically looking for properties that they can eventually own and that meet their long-term housing needs.

    Several buyers have also shown interest in rent-to-own options for larger, more expensive properties such as – multi-family homes or even commercial properties. However, these types of arrangements may be less common, and the eligibility requirements may be more stringent.

    Buyers who are interested in rent-to-own options are typically looking for properties that meet their current and future housing needs and that they can eventually own. Mostly, buyers who are opting for the ‘Rent-to-own’ Option are from India, Russia, Pakistan, and the Middle East.

    Developers offering ‘Rent-to-own units’ Option

    Some of the major developers offering the ‘Rent-to-own units’ option include –

    • California Village offers a ready-to-move-in and post-handover payment plan that can go for 5 years and a few other options.

    Key Factors Influencing ‘Rent-to-own Units’ Option

    The rent-to-own trend in real estate is influenced by various factors that can lead to its rise or fall. Economic conditions, such as job growth and unemployment rates, play a significant role. In a stable economy with a strong job market, more people can afford rent-to-own options, leading to a rise in the trend. Conversely, during an economic downturn with high unemployment rates, fewer people can afford this option, causing a decline in the trend. 

    The availability and affordability of housing also impact the trend. A shortage of affordable housing or rising home prices may increase demand for rent-to-own, while an oversaturated market or falling home prices may decrease it. 

    Interest rates also affect the attractiveness of rent-to-own options, with low rates potentially reducing the trend and high rates increasing it. Additionally, demographics play a role, with a large population of millennials struggling to save for a down payment leading to a rise in the trend, while a population of older homeowners may decrease demand for rent-to-own options.

    Is ‘Rent-to-own units’ a Right Option for you?

    Purchasing a property on a mortgage from a bank provides long-term stability and ownership but requires a larger down payment, a strong credit history, and a steady income. 

    The main differences between renting-to-own schemes and home mortgages in Dubai lie in the down payment amount and eligibility conditions. For home mortgages, a minimum 25% upfront payment of the property value is required. In contrast, rent-to-own programs offer more flexibility, allowing you to try the unit before purchase and have simpler criteria and procedures. Rent-to-own schemes also increase the chances of owning a home in Dubai at reasonable prices, as the first payment is not as costly, and rental payments serve as a form of instalment to collect your capital indirectly.

    Things to Remember Before Renting-to-Own Unit

    When considering a renting-to-own scheme, it’s important to keep in mind the following points:

    • Thoroughly understand all the clauses, rules, and conditions in the tenancy contract before signing
    • Be aware of price differences based on market changes during the contract period
    • Ensure you have the title of the deed throughout the entire contract duration
    • Understand the time frame for payment and termination clauses otherwise, you might end up paying a higher upfront amount compared to the going rate for similar properties not under a rent-to-own scheme.
    • If you decide to buy the property, check your eligibility for a mortgage to complete the buying process.

    Documentation required

    • The value of the property that the buyer and developer agreed on
    • The time frame of the lease contract, according to both parties’ confirmation
    • The title of deed ownership throughout the contract duration
    • Exit terms
    • Penalty clause for defaulted repayments
    • Percentage of down payment (if any) to be refunded in case you decide to terminate the contract 
    • A clause related to sudden job loss, missed repayments, or mortgage rejection at the time of purchase (once the lease term ends)
    • Property maintenance terms to define who is responsible for the upkeep of the property throughout the contract duration

    To register for the rent-to-own scheme in Dubai, the following documents are required

    Individuals: a copy of the buying contract, a copy of the Emirates ID. For non-residents, a copy of a valid passport.

    For Sole Establishments: a copy of the trade license. For the license’s owner, a copy of a valid Emirates ID and passport. Power of attorney if available.

    For Limited Liability Companies: Copy of a valid trade license. For the license’s owner, a copy of a valid Emirates ID and passport. Power of attorney if available.Copy of the company’s Memorandum of Association ( MOA) and its appendices (legally translated into Arabic) and a copy of the shareholder certificate.

    For Foreign/GCC Companies: a Copy of a valid trade license. For the license’s owner, a copy of a valid Emirates ID and passport. Power of attorney if available. Copy of the company’s Memorandum of Association and its appendices (legally translated into Arabic) and authenticated by the Ministry of Foreign Affairs. A copy of the shareholder certificate. No Objection Certificate from the Free Zone areas, with one-year validity (for foreign companies).

    Final words

    Undoubtedly, the ‘Rent-to-Own Units’ option has come as a ‘blessing in disguise’ for those buyers who are unable to secure a traditional mortgage due to factors such as poor credit, lack of down payment, or a high debt-to-income ratio. It is a suitable option for those buyers who want to become homeowners but may not have the financial means to do so immediately. Furthermore, rent-to-own options also involve lower upfront costs with more relaxed eligibility requirements.

    However, it is also important to remember that the ‘Rent-to-Own Units’ option often comes with higher monthly payments and a premium for the purchase option yet it is much lower than the interest value. This makes rent-to-own a great option for those who can afford high instalment value.

    Real Estate Performance in Q2, 2023

    Dubai’s real estate sector stands as a paragon of excellence, captivating global attention with its state-of-the-art, opulent, and awe-inspiring properties. This alluring combination has proven to be a magnet for investors worldwide, beckoning them to participate in Dubai’s real estate market and savour the bountiful rewards offered by its ultra-luxurious properties. Boasting an unmatched return on investment (ROI) of 7-8% makes Dubai’s real estate unparalleled in the global arena. Notably, the second quarter of 2023 witnessed a continuation of this remarkable trend, solidifying Dubai’s position as a beacon in the real estate realm.

    Driving this unequalled performance are several key factors that have propelled the city’s property market to new heights, ensuring its constant evolution with groundbreaking developments. Foremost among these factors are the distinctive quality and innovative designs of the properties on offer, lower taxes for corporates, world-class infrastructure, highest return and rental value, and above all safety are some of the factors which are setting Dubai apart from any other city in the world. This uniqueness has undoubtedly contributed to attracting investors seeking premium offerings and superior returns.

    Real estate transaction in Q2, 2023

    Q2, 2023 has been the most successful Second quarter in the last 10 years in terms of both the number and value of the transactions. According to DXB Interact, in Q2, 2023, a total of 30,264 sales transactions worth AED 91.2 billion (US $24.8 bn) were recorded. The number of transactions in Q2, 2023 increased by a whopping 34.8% compared to Q2, 2022, however, compared to the previous quarter (Q1, 2023), the number of transactions decreased by 2.1%

    In terms of sales value, there is a 2.8% increase in Q2, 2023 compared to the previous quarter and a colossal 54.4% increase in Q2, 2022. 

    Out of 30,264 sales transactions – 23,244 apartments were worth AED 47.5 billion4,808 villas worth AED 20.9 billion, 925 commercials worth AED 1.6 billion, and 1,287 plots worth AED 21.2 billion.

    Compared to Q1, 2023, there was a 1.4% increase in the number of apartments while Villa’s sales plummeted by 19.9% in Q2, 2023. The number of Commercial properties increased by 4% and the number of plots sold also surged by 18.7%.

    When compared to Q2, 2022, there was a 54.1% increase in the number of apartments sold while the number of villas sold decreased by 12%. The number of Commercial properties surged by 30.6% and Plots by 8.2%.

    Decline in Off-plan Property Sales Transactions

    According to DXB Interact, the number of property sales transactions in Q2, 2023 stood at 15,889 worth AED 40.8 billion. This was a 10.4% decline from the previous quarter but a 44.2% increase from Q2 2022. 13,023 apartments were sold worth AED 30.2 billion. This was a 74.7% increase in the sales of apartments compared to Q1, 2022 but a 3.9% decrease from Q1, 2023. 

    Sales of villas in Q2, 2023 were 2,739 worth AED 10.2 billion. This was a 22.2% decrease compared to Q2, 2022 and a 33.5% decrease from Q1, 2023. 127 Commercial properties were sold worth AED 369.5 million in Q2, 2023. This was a 209.8% increase compared to Q2, 2022 and an 81.4% increase compared to Q1, 2023. 

    Surge in Ready Property Sale Transactions

    According to DXB Interact, there were 14,375 ready property sale transactions took place in Q2, 2023 worth AED 50.4 billion. This was a 9.2% increase from the previous quarter and a 25.7% increase from Q2, 2022. 

    The number of ready apartments sold in Q2, 2023 was 10,221 worth AED 17.3 billion. This was a 9% increase from Q1, 2023 and a 33.9% increase compared to Q2, 2022. Sales of villas in Q2, 2023 were 2,069 worth AED 10.7 billion – a 9.8% increase from the previous quarter and a 6.4% increase compared to Q2, 2022. 

    798 Commercial properties were sold worth AED 1.3 billion in Q2, 2023. This was a 2.6% decrease from the previous quarter however, an impressive 19.6% increase compared to Q2, 2022. The sales of plots in Q2, 2023 was AED 21.2 billion – an increase of 18.7% compared to the previous quarter and 8.2% compared to Q2, 2022.

    Off-plan vs. Ready Property Sales 

    Going by Sales volume, 45% of the real estate transactions that took place in Q2, 2023 were for ready properties, while 55% are for off-plan properties. 

    In terms of Sales value, 42% of the transactions are for ready properties and 58% for the off-plan.

    Surge in Mortgage Transaction

    A total number of  8,009 Mortgage transactions worth AED 32.8 billion happened in Q2, 2023. Compared to Q2, 2022, there was a 38.1% increase in the number of transactions and a 29.2% increase in total value.

    Property Prices Witnessed an Upward Trend

    Property prices also witnessed a rise in the second quarter of 2023According to DXB Interact, the median price for the property increased from AED 1,150 per sq. ft. in Q2, 2022 to AED 1,336 in Q2, 2023. This was a 16.2% year-on-year (YoY) increase in property prices. When compared to Q2, 2014, the property prices in Q2, 2023 increased by 29.1%.

    The price per sq. ft. for an Off-plan apartment in Q2, 2023 stood at AED 1,810 while the prices for an Off-plan villa were AED 1,207 per sq. ft.  For the Plot, the price per sq. ft. was AED 615. The price per sq. ft. for the Ready apartment was AED 1,140 while the price per sq. ft. for the Ready villa was AED 978.

    Demand for Luxury Properties Remains Resilient

    Q2, 2023 was one of the best quarters for the sales of luxury properties. 62% of the total properties sold in the second quarter of 2023 were above AED 1 million.

    • 38% of the properties sold were the priced below AED 1 million
    • 28% of the properties sold were in the price range of AED 1 million-2 million
    • 14% of the properties sold were in the price range of AED 2 million-3 million
    • 12% of the properties sold were in the price range of AED 3 million-5 million
    • 8% of the properties sold were above the price of AED 5 million

    This sales value proportion does not include mortgage transactions.

    Most Expensive Properties Sold in Q2, 2023

    Villas: The most expensive villas sold in Q2, 2023 were at Emirate Living (AED 150 M), MBR District 1 (AED 90 M), Dubai Hills (AED 82M), Palm Jumeriah (AED 76M), and The World (AED 74M)

    Apartments: The top 5 projects with the most expensive apartments sold were – Bulgari Lighthouse Dubai at Island 2 (AED 137 M), BV Residences 3 at Jumeira Bay (AED 122 M), Six Senses Residences The Palm at Palm Jumeriah (AED 105 M), Bluewaters Residences 7 at Dubai Marina (AED 80 M) and Private Residences Dubai at Dubai Water Canal (AED 78 M).

    Most Expensive Areas 

    According to DXB Interact, the top 5 most expensive areas to buy an Apartment by per sq. ft. in Q2, 2023 were – Dubai Marina (AED 3,565 AED per sq. ft), Palm Jumeirah (AED 2,729 per sq. ft.), Downtown Dubai (AED 2,361 per sq. ft), Dubai Creek Harbour (AED 2,059 per sq. ft.), and Dubai Hills (AED 1,983 per sq. ft).

    The top 5 most expensive areas to buy a Villa by per sq. ft. in Q2, 2023 were – Tilal Al Ghaf (AED 1,496 per sq. ft), Arabian Ranches 3 (AED 1,429 per sq. ft.), Damac Lagoons (AED 1,328 per sq. ft.), Damac Hills (AED 1,219 per sq. ft.), and Mudon (AED 1,125 per sq. ft.)

    Tenant’s Top Picks: What They Look for in their Communities?

    In a dynamic market characterized by a surge in developers and properties, the balance of power is shifting towards the tenants. Traditional drivers such as lower rents, location, and promotion are no longer the sole determinants to attract a tenant to a property. Instead, today’s discerning tenants prioritize sustainable living, safety, timely maintenance and repair, and above all, a feeling of belongingness over any other factors.

    With Dubai serving as a melting pot of over 150 nationalities, landlords and management companies are faced with the imperative of creating inclusive communities that cater to the diverse needs of tenants. This blog outlines the essential elements tenants value in a residential community.

    1. Safety 

    Tenants prioritize safety more than anything else. It is a key factor in their decision to rent a property. Thus, it is of supreme importance for management companies and landlords to embrace technology to provide the utmost safety to the residents.

    Building a safe and secure residential community is a multi-step process. This includes installing security systems, CCTVs, biometric access systems, central monitoring systems, video door phones, intruder alarm systems, fire alarms, infrared sensors, and deploying highly trained security personnel.

    2. Timely Maintenance 

    Property is no different from a car. If you do not invest in maintenance, you will incur hefty expenditures later on in terms of repairs. Thus, timely maintenance of the property is a prerequisite. Modern-day tenants understand this very well. For them, it is of paramount importance that the property they are staying at is well-maintained.

    It is also imperative to conduct timely maintenance of electrical appliances, such as air conditioners, lighting, switches, fittings, and wiring, to prevent short circuits or any other electrical damage that can ruin the appliances. A well-maintained property with astounding visual features like interior and exterior paint, a garden, and a patio not only makes the community a top choice for tenants but is also the best bet for landlords, as it will allow them to fetch the higher rental value, achieve a better occupancy rate, and increase tenant satisfaction.

    3. Landscaping and Gardens 

    As they say, ‘The first impression is the last impression.’ Beautiful landscaping and gardens play a key role in creating that unforgettable first impression in the minds of tenants. It is one of the persuasive aspects that influence tenants to move to a property. Thus, it is pivotal for management companies and landlords to ensure that the landscaping, lawns, and gardens in the property are well-maintained. This will ensure that the property continues to attract affluent tenants and maintain a healthy occupancy rate.

    4. Hassle-free Parking 

    A personal vehicle has nowadays become a basic necessity to move within the city. Thus, tenants prioritize residential communities that are equipped with spacious, systematic, and safe parking spaces. Tenants also want residential communities to clearly outline parking rules in the lease agreement and display signs to communicate and safeguard them from unauthorized parking.

    5. Recycling Facilities 

    Modern-day tenants prioritize residential communities that are equipped with advanced recycling facilities. Recycling offers numerous environmental benefits. It conserves energy, reduces air and water pollution, and helps combat climate change. According to an article titled –Benefits of Recyclingby Stanford University, Stanford University recycled, composted, and otherwise sourced reduced 62% of its waste and reduce landfill by 35%. Recycling waste results in cleaner air and water, less pollution, more forested land and open space, and reduced greenhouse gas emissions. This means better health, lower medical expenses, and a reduction in energy bills for tenants.

    6. Pet Care

    It has never been easy for pet owners to plan their day with pet care in their residential community. Thus, along with their priorities, residents also prioritize the needs of their pets when deciding to rent a house/unit in a residential community.

    Pets have special needs. Tenants are looking for residential communities which are equipped with pet care & pet park facilities with knowledgeable and experienced pet caretakers to take care of their pets in their absence. 

    7. Community Engagement

    Kaizen AMS firmly believes that community engagement is the foundation of “‘Creating Memorable Experiences and Communities’,” which is the purpose behind our inception. Thus, we organize a vast gamut of community events that are well-received by our residents.

    Some of these events are as follows:

    a.) Krafty Kids

    The Krafty Kids event offers an exciting opportunity for kids to learn artwork, paint, enjoy an afternoon of fun and games, and make new friends.

    b.) Family Day

    Family Day is an event that provides a unique chance for every resident to get to know their neighbours and have a fun time with them. This event enhances the relationship and bonding among the residents, creating unforgettable memories and a sense of community.

    c.) Movie Night

    Kaizen AMS’ Movie Night is an outdoor event where the residents in our managed community enjoy watching movies with their neighbours and fellow residents, having a wonderful evening in their backyard.

    d.) Valentine’s Day

    Kaizen AMS believes in spreading love within its communities, and Valentine’s Day is indeed the best time to do that. We cherish this auspicious festival of love by sending a beautiful bouquet to our residents with a heartwarming message.

     8. Home Services 

    In Dubai, tenants look for home services that offer prompt maintenance and repair solutions. Professional cleaning services are paramount to keep the living spaces pristine and convenient. Tenants also expect reliable home security systems for enhanced safety, and seamless internet and telecommunication services to stay connected. 

    By providing the above, landlords and property management companies can meet the needs of tenants in Dubai and create a positive and convenient living experience.

    How Kaizen Ensures the Safety of its Residents from Fire Accidents through Timely ‘Fire Drills’?

    Fire accidents are one of the most unforeseen and unfortunate situations which not only cause heavy damages but also claim precious and invaluable human lives. With the rise in income, spending and awareness, the property buyers are prioritizing safety more than ever. They prefer to live in the communities which are equipped with all necessary equipment, applications, resources and technology to avoid and combat any unforeseen fire accident. This allows management companies to test the vulnerability of the community to the fire accidents and how prepared they are to combat any such unforeseen situation.

    The seriousness of organizing fire drills can be understood from the study conducted by CTIF – The International Association of Fire & Rescue Services which reveals that 24.2% of the fire accidents that take place globally occur only in the residential buildings, 8% in other buildings. The study also finds out that 82.7% of all fire-related deaths globally are in residential building fires. Fire accidents not only cost human and money loss but also puts the reputation of the developer as well as the management companies at stake. 

    What is a Fire Drill?

    As rightly said by the renowned American Poet, Late Maya Angelou, ‘Hope for the best and be prepared for the worst’. Fire drills are the preparation towards worst situations. It is an imitation or simulation of a real life emergency situation in which fire wardens, guides staff and members responsible for the upkeep of the community on the proven and tested ways to deal with fire accidents. In simple terms, Fire drill involves making the staff aware of the best ways to use emergency doors to an assembly point outside of the building and use fire equipment to deal with any unforeseen fire accident impromptu.

    Importance of Fire Drills

    Conducting frequent fire drills is the most viable solution to deal with fire accidents. They make sure that staff, residents, and visitors are aware of the necessary steps to deal with the fire accident. Fire drills encompass all necessary exercises and steps one must take to overcome the situation to minimize the damage. 

    As a part of the fire drill, a hypothetical situation of a fire accident is created with an objective to simulate the emergency procedures that must be followed at that time. The fundamental purpose of organizing the fire drill is to educate the staff about how they should behave in case of a fire accident and informing them about the way out or emergency exits to escape the scene.  Fire drills also test the vulnerability of the evacuation plan from time -to-time and boost the confidence of the staff in  managing any fire accident situation with confidence and ease.

    Ideal Frequency & Duration

    The required frequency of organizing a fire drill varies from building to building based on the assumed risk. However, the ideal frequency to organize fire drills in a building is 1 to 2 times in a year.  It must be compulsory for all staff members (full-time, part-time, or temporary) to participate in the fire drills to make them aware of their responsibilities in case of a fire accident.

    According to Cornell University, fire drill times can vary from building to building, depending on many factors, such as speed of evacuation, building size and fire alarm system resetting, however the ideal duration of most fire drills is between 5 and 15 minutes. 

    How does Kaizen organize Fire drills at its 130+ managed communities?

    Being a socially responsible firm, Kaizen AMS conducts frequent fire drills at all its managed communities in line with the procedures established by the Dubai Civil Defense (DCD). Our Fire drills provide a unique opportunity to the staff managing our communities to practice emergency procedures in a simulated but safe environment. This boosts their confidence to manage any unforeseen fire accident without panicking. 

    Kaizen AMS recruits world-class and highly experienced Fire Wardens to organize fire drills who ensure that all staff members clearly understand their emergency duties. They also make sure the fire drills comply with the requirements of the local fire code and are flexible enough to make necessary changes or adjustments to improve performance.

    Here are the key highlights of Kaizen AMS’ Fire Drills 

    1.) Ensuring the Availability of Emergency Devices

    Before organizing a fire drill, Kaizen AMS ensures 100% compliance with the emergency preparedness guidelines.  Our team makes sure that the place where the mock drill is taking place is equipped with things like extinguishers, emergency supplies, fire exits and evacuation routes so that in case complications arise, Kaizen AMS’ team can respond to it. We also ensure that in case all evacuation routes are blocked or doors are jammed, our managed communities have alternate routes. 

    2.  Coordination with Dubai Civil Defence 

    Kaizen AMS works in coordination with the closest civil defense station from its managed community to organize the fire drill.  Officials from Dubai Civil Defense visit our managed communities frequently and plan the scenario with the property/community manager. Our managers inform each staff member about their responsibilities related to the drill. Once the fire drill is over, our team submits a comprehensive report to Dubai Civil Defense informing them about the timings of the arrival of each authority such as Dubai Police, Ambulance, and the Fire truck. 

    3. Well-planned Fire Evacuation Plan 

    Prior to organizing a fire drill or instructing residents to rush towards the exits at the sound of a fire alarm, Kaizen AMS’ team ensures there is a detailed and reviewed fire evacuation plan in place. The fire evacuation plans focused on the areas which are more prone to fire accidents like kitchen or warehouse which stock chemicals, charcoal or any inflammable substance. We clearly assign and delegate the responsibility to each member of the fire evacuation team who reports to the fire warden. 

    Kaizen AMS’ team also ensures we have comprehensive and experimented fire drill procedures. We also design a communication plan to facilitate multi-channel and two-way mass communication. Post that, Kaizen AMS team plan & map the evacuation routes, emergency exits and evacuation procedures. The team also ensures that all fire detection and preventive devices like fire alarms, smoke detectors and fire extinguishers are functional. We also ensure timely follow up and reporting using our advanced notification dashboard to notify employees of a fire accident to ensure their utmost safety.

    4. Organizing Training for the Team Dealing with Fire Accidents

    Once the Fire Evacuation Plan is finalized, Kaizen AMS ensures that the team dealing with the fire accidents including the Warden is well-trained on the evacuation procedures and plans. This ensures a 100% success rate of a fire drill.  We also ensure that all the participants of the fire drill agree with the Fire Evacuation Plan and understand its importance and take it with utmost seriousness.

    5. Accurate Measurement of the Results of the Fire Drill

    Kaizen AMS fire drill experts design a comprehensive list of parameters and Key Performance Indicators (KPIs) to evaluate the performance of every drill. This allows the management to take necessary actions to improve the effectiveness and efficacy of the fire drill next time. For example – If in the first attempt, it takes 20 minutes for everyone to evacuate the building, Kaizen AMS’ team ensures that next time it takes only 15 minutes or less and with every drill this evacuation time decreases. Some of the KPIs on which the effectiveness of the fire drill is measured includes – a.) time from drill activation to evacuation  2.) time to report completion of the drill and 3.) the success of the shutdown of equipment (if required)

    6. Ensuring everyone’s Participation

    As they say, a chain is as strong as its weakest link. If one of the staff members remained untrained that would undermine the success of the fire drill. Thus, Kaizen AMS’ ensures that fire drills are attended by each of our members responsible for dealing with the fire accidents. Fire drills take place at an area which is a familiar and agreed-upon location which is strategically placed outside the building. Kaizen AMS’ tech-enabled approach and notification systems allows it to track the status of staff who have participated in the fire drill to ensure 100% participation and eliminate any possibility of error which can arise due to untrained staff.

    7. Observation

    Observation is considered as one of the best ways to improve the effectiveness of the fire drill. As a part of the observation exercise, we select the experts with years of experience in dealing with the fire accidents who are not on the fire evacuation team to act as neutral observers. Once the drill is over, the observers conduct a debriefing and prepare an after action report to highlight the areas where the team has performed at par with the expectation and the areas where they need improvement. 

    Some of the KPIs where observers evaluate the team include – 1.) Did staff members close the doors upon exiting the rooms 2.) How confident were the staff members while dealing with the situation 3.) Did all staff members meet at the assigned spot? 4.) Did the fire alarm reset and the alarm notified of the drill? 5.) Did all staff members get the alert from your notification system? 6) Were doors, alarms, automated voice command and other emergency devices working properly?

    8. Implementing the Feedback of the Observers

    Based on the observations in the after action report, observers or fire safety leaders provide their feedback on the ways fire drill could have been better. As a part of this exercise, each team member describes their actions during a fire drill and is expected to analyze any perceived weaknesses or confusion. Observers provide their expert opinions to the staff members on their weaknesses to ensure they perform that specific task more effectively next time. 

    Kaizen AMS’ also ensures that observers test the capabilities of the team to combat any unforeseen situation by testing them on all possible scenarios of the fire accidents. This is done by changing the variables of the fire drill every time with more complex scenarios. For example – by creating more complex hurdles for the team like blocked exits, closed stairwells, damaged lifts to name a few.