Dubai’s Real Estate Market is Thriving in 2021 – What’s the impact?

Dubai’s real estate sector is going through an interesting phase of transformation. Effective planning has enabled the city to navigate through the global economic slowdown and strengthen its property sector reforms. 

Dubai’s real estate market set a new benchmark, the highest in the last four year by value of real estate sales transactions. The 15th edition of Mo’asher, Dubai’s official sales price index, by Dubai Land Department (DLD), shows that May 2021 had the highest total sales transaction values since March 2017 in excess of Dh11.11 billion, with a growth 1.4 % compared to last April. The number of real estate transactions in May 2021 reached 4,429, bringing the year total, to date, to 20,989 transactions worth Dh47.19 billion.

While the global property real estate sector was battling for its survival in 2020, Dubai’s real estate market was thriving like never before. This was very evident from the number of sales transactions recorded by the Dubai Land Department (DLD). The sector recorded 51,414 transactions worth over Dh 175 billion in 2020 as per the annual transaction report issued by the Dubai Land Department (DLD). 

The first quarter of 2021 has come up with more reasons to cherish for the real estate headhonchos. Due to decline in property prices & rental rates, the sector witnessed the highest number of transactions in the last two years. 

Let’s take a look at Q1 2021 performance:

Dubai Real Estate Sector: Q1 2021 Performance

The recent bulletin issued by Dubai Land Department (DLD) titled ‘Real Estate Updates Q1 2021’ highlights the sector’s continued positive results in Q1 2021. Real estate transactions reached their highest mark since 2017, registering 6,590 deals valued around AED 22.9 billion, growth in number by 43% and in value by 40% year-on-year. 

The real estate transactions in Q1 2021 achieved a phenomenal growth of 27% and 47% compared to Q1 2020 and Q1 2019, respectively. The value of real estate brokerage commissions achieved by active real estate brokers in the real estate market reached AED 392 million in Q1 2021, while 143,374 Ejari contracts were recorded in Q1 2021, 57% of which were new contracts and 43% were renewed contracts.

Dubai’s Skyscrapers are Standing Tall on the Expectations of New Investors:  

Despite all market uncertainties, the Dubai real estate sector has not lost its charm. According to the DLD bulletin for Q1, 2021, the sector attracted 5,683 new investors, which was 64% of the  total number of investors. The Dubai property market has been highly successful in winning the trust of both local & international investors. 

The areas that remained ‘an apple of an eye’ of investors to buy villas in Q1 2021 include – Hadaeq Sheikh Mohammed bin Rashid, Wadi Al Safa 5, Wadi Al Safa 7, Nad Al Sheba 1, and Al Thanyah Fourth, as per the bulletin.

The areas that remained the top choice for apartment sales are –Dubai Marina, Palm Jumeirah, Business Bay, Burj Khalifa, and Al Merkadh were the top choice for apartment sales. 2021 will prove to be more positive for the industry as the demand-supply ratio is heading towards stability and expected to remain relatively resilient to the effects of 2020.

Growth Drivers:

Rising cases of covid-19, strict travel restrictions, lengthy lockdown phase, economic slowdown, and massive business losses due to lack of demand & job losses, were the top reasons for the global investors especially from Europe, India & North America to invest in Dubai real estate market. There has been an enormous rise in the number of affluent investors from Britain, Italy, France, and Germany buying villas and holiday homes in Dubai due to rising cases of coronavirus in their respective nations. Even in the middle of the pandemic in 2020, the Dubai real estate market got a big boost from foreign investors. According to the data posted by Gulf News, in 2020, Dubai’s real estate market attracted 19,757 foreign investors, who concluded 24,666 investments worth over Dh35.6 billion.

The triumph of the UAE real estate sector is also attributed to its visionary national leadership for coming up with business-friendly measures like FDI laws, restoration of relations with Qatar, fastest and well-executed Covid vaccination drive, digitization, reduction of interest rates, Expo 2020, increase in LTV ratios for the first time buyers of the property, long-term residency visas, and launch of golden visa to offer quick pathway to citizenship. 

In 2020, Kaizen AMS witnessed many of its prestigious real estate clients coming up with new units as demand for the property increased exponentially. This has positively impacted our business last year. Banking on the favorable business climate, government measures, real estate spending, and rising foreign investments, Kaizen AMS is all set to thrive and expand its client portfolio several folds in 2021.

What Makes Dubai Real-estate Sector Attractive for Global Investors?

In the last decade, Dubai’s skyscrapers have become attractive to elite international investors.  Along with its luxury aspect, Dubai real estate market also offers a better return on investment (ROI) on properties compared to other major international cities which makes it the preferred choice for global investors.

Earlier affluent people used to invest their fortunes in buying second homes in western cities such as London, Berlin, Geneva, Paris, and New York. However,  in the last decade, Dubai has outpaced many western cities to emerge as the biggest investment destination. With rising investments from across the globe, Dubai’s real estate sector head honchos are now customizing their sales strategies as per the requirements of international clientele.  

Exponential Surge in Investments into Dubai’s Real-estate Sector:

Dubai has maintained its leading position as one of the top three investment destinations globally in 2020 despite the pandemic. A vast number of property buyers in the emirates hail from abroad, making it the most active market for foreign real estate investors in the world.

According to the annual transaction report – 2020 issued by the Dubai Land Department (DLD), Dubai’s real estate market recorded 51,414 transactions in 2020, representing a value of over Dh175 billion. Indians emerged as the biggest investors, followed by the Chinese, British, Pakistanis, and French. Dubai’s real estate sector attracted 19,757 foreign investors, who concluded 24,666 investments worth over Dh35.6 billion.

There was also the great interest shown by the investors from the Gulf Cooperation Council (GCC) countries in buying properties in Dubai. About 6,704 investors from GCC recorded 8,659 investments worth Dh14.8 billion. Emiratis topped the list of GCC nationals, followed by Saudis, Kuwaitis, Omanis, and Bahrainis. In 2020, 4,388 Arab investors registered 5,283 transactions with a total value of about Dh7.5 billion.

Growth Drivers:

The prime reason for international buyers to buy property in Dubai is characterized by dynamism and tax exemptions.  Tax rates in other parts of the world are significantly higher and this is one of the biggest reasons for global buyers to view the Dubai property market favorably. Dubai is also popular due to its location as it is almost located equidistant between Asia and Europe.

There has been a colossal rise in the number of Indians buying properties in Dubai as the country’s central bank – the Reserve Bank of India (RBI) has doubled its foreign exchange remittance limit, subsequently making it much easier for Indian investors to purchase property in Dubai. Furthermore, Expo 2020 has also increased the level of enthusiasm among foreign investors.

Top Reasons to Invest in Dubai Property Sector:

The factors which make Dubai’s property market charming for international investors are as follows:

  • Higher Annual Rental Yields: Studies conducted by real-estate investment consulting firm, Global Property Guide also reveals that an average yearly return on Dubai properties is 5.19%. This is significantly higher compared to annual rental yields in New York (2.9%) London (2.7%), Singapore (2.5%), and Hong Kong (2.4%). With a rise in the real estate value post-Covid era, Dubai’s property market has much higher possibilities of even better returns.
  • Lower Property prices per square meter: The property prices per sq. meter in Dubai are far lower compared to other international cities. According to the Global Property Guide, the cost per sq. meter for a 120 sq. meter apartment in Dubai is US $5,918 compared to Hong Kong (US $28,570), London (US$ 26,262) New York ($17,191) Tel Aviv ($17,149) Geneva ($16,467) Tokyo ($ 16,322), Paris ($15,867) & Berlin ($7,325). Even the cost of buying a house is much cheaper in Dubai compared to other international cities. According to research by Alliance Business Advisors a prominent real-estate consulting firm, the average price of a home in Dubai is AED 1 million (US$ 272,000), compared to US$ 1.2 million in Hong Kong, US$ 1 Million in Munich, US $ 915,000 in Singapore, $ 650,555 in Paris, and $ 649,026 in New York, as per China Daily.
  • Zero Property Tax: Properties in Dubai have a 0% tax on property purchase and filing income returns. The burden of the property tax rate in other countries is higher such as UK (2.53%) France (1.70 %), Greece (1.50 %) Iceland (1.48 %), and Italy (0.71 %) according to the International Tax Competitiveness Index (ITCI). Zero Property tax is another factor that makes Dubai a preferred choice for international investors.
  • Safety: UAE is one of the safest regions in the world which makes Dubai a top choice to invest in. According to Gallup Law and Order Index 2020, the United Arab Emirates is the 4th safest country in the world compared to Germany (ranked 26th) France (ranked 31st) Japan (ranked 33rd) US (ranked 36th), and the UK (ranked 49th).  In terms of Law and Order, UAE has been ranked 10th globally in 2019 Gallup’s global Law and Order Index.
  • Residency Visa: To make its real-estate sector attractive for global investors, the UAE government has rolled out new visa laws linked to property investment offering a quick path to residency (subject to certain conditions). 

According to Property Finder, for properties valued above AED 1 million (US $272,200), the investor may be entitled to a 2-year residency visa. For properties valued above AED 5 million (US $1.3 million), the investor may be entitled to a 5-year residency visa. While for properties valued at above AED 10 million (US $2.7 million), the investor may be entitled to a 10-year residency visa. Dubai is offering property investors a unique opportunity to gain a resident visa depending on the purchase.

The Imperative Role of Property Management Firms:

Property management firms are playing a key role in making Dubai real-estate sector attractive for global investors by offering world-class services. They are facilitating investors in managing property finances remotely which is the biggest challenge faced by them. 

KAIZEN Asset Management Services is one of the top ISO 9001:2015 certified providers of end-to-end solutions in Property Management, Strata Management, Community Management, Lease Management, Handover Services, and Investment Advisory. We offer  to simplify the journey for each party i.e. investors, tenants, and landlords.

Compliance and ethics have been an integral aspect of Kaizen AMS’ success story.  We follow international best practice standards to make our investors feel more secure that their investment is managed properly. Kaizen AMS’ strong commitment to quality, compliance, & ethics has earned it a trust vote of notable real-estate clients in the UAE such as – Emirates REIT, EMAAR Properties, Meydan, Meraas Estates, Mazaya, and Al Futtaim, to name a few.

Our state-of-art property and strata management services assisted these clients in ensuring that both tenants and homeowners drive utmost satisfaction with the services and occupancy rates stay at the pinnacle. Our services are a wheel in driving billions of dirhams of investments in the UAEs real-estate sector.

The Role of Compliance in the Success of PM Firm:

The primary reason for the unparalleled services offered by the property management firms is their strict compliance with international compliance & management standards such as ISO 9001:2015, QMS, BCMS, and RICS.

The compliance with the guidelines stated in ISO 9001:2015 assists property management firms in outlining a framework for improving quality and a vocabulary of understanding to offer services that consistently meet the requirements and expectations of customers and other relevant interested parties in the most efficient manner possible.

The Quality Management Systems (QMS) is the aggregate of all the processes, resources, assets, and cultural values that support the goal of customer satisfaction and organizational efficiency. The implementation of QMS assists property management firms in defining the structure, scope, responsibilities, the necessary content (defined processes and documentation), and the resources required to ensure the highest standards of quality. The implementation of Business Continuity Management (BCM) capabilities enables property management firms in restoring their businesses to normal operations during business interruptions, which range from a simple power outage to a Category 4 hurricane. The compliance with the Royal Institution of Chartered Surveyors (RICS) is another reason for the triumph of the property management sector. It guides the sector in promoting and enforcing the utmost professional standards in the development and management of land, real estate, construction, and infrastructure.

Ejari which means ‘my rent’ in Arabic is the mandatory registration of a tenancy contract that brings transparency in the operations. It is a smart leasing management application that specializes in the management of leasing operations. Ejari assists property management companies, property owners, and even the owner’s representatives in managing their leases from anywhere and at any time. It also reduces the cost and time required to complete the registration of rental contracts and facilitates the people to simply register their Ejari contract online.

Real Estate Regulatory Authority (RERA) – regulatory arm of Dubai Land Department (DLD), plays a key role in the swift operations of property management firms. It has administrative independence, enjoys its own financial system, and secures full legal authority to regulate Dubai’s realty. RERA has been instrumental in defining Dubai’s legislative framework in respect of real estate matters as well as in the supervision of real estate regulatory framework and development. It is also responsible for settling disputes between tenants and landlords.

The compliance with the above laws enables property management firms to quickly register the rental agreements. RERA has been instrumental in setting up the policies and plans to effectively regulate the real-estate & property management sector and ensuring Dubai Real-estate sector always remains an apple of the eye of foreign investors.

UAE Property Market Looks Promising as Sales for Villas Increase

UAE property market is bouncing back from the impact of Covid-19. The industry looks affirmative after experiencing a lengthy phase of decline in the prices. Villas in locations such as Palm Jumeirah, Business Bay, The Lakes, and Jumeirah Islands experienced a modest rise in prices in January 2021.

According to ValuStrat, the valuation index for 2021 is almost 14% lower compared to the previous year. Dubai’s VPI — Residential Capital Values for Dubai index stood at a stable 65.3 points, compared to 79.1 the previous year. This suggests instability in the capital value of houses in Dubai. They also indicated a downward trend in villa sales and a slight decline in the upcoming matured villa projects

Exponential Rise in the Demand of Ready to Move-in Villas:

In an interview given to Arabian Business Global, President of Property Finder,

Ari Kesisoglu, stated, “Demand for ready to move in villas and townhouses in Dubai has witnessed a growth of over 500 % since May 2020 as residents choose to upgrade their living situations.”

The top reason for the rise in sales of secondary villas and townhouses is the opening up of the property market for investment to Non-GCC nationals.

Substantial Rise in Cash-based Transactions:

There has been a surge in the trend of purchasing villas through cash-based transactions. According to Construction Week, in November last year, cash-based transactions accounted for 59%, with a 14.4%,  monthly gain in transactions of cash-based sales, with ready-made housing transactions surged by 22.3%.

Buyers are Preferring Ready-made Houses over the Unplanned:

There has been an exponential rise in buyers purchasing ready-made properties over unplanned houses. The data from ValuStrat indicates the transaction volume for ready-made houses increased 18.1% whereas transaction volume for unplanned houses fell drastically by 51.5%.  There has been a surge in Off-plan sales at a lower monthly rate of 9.4%.

Key Highlights of November 2020:

Here are the key highlights of November 2020 –

Emaar, Nakheel, and Damac remained the top three property developers

The most preferred locations to buy or rent homes were Dubai Marina, Jumeirah Village, Business Bay, Palm Jumeirah, and Town Square

Despite the higher overall cost, villas witnessed an increase in sales compared to apartments as they have lower prices per sq. ft.

Apartments located in prime areas such as – Jumeirah Beach Residence, Dubai Sports City, witnessed a drop of 0.9% per month in their capital value

Unplanned locations with most of the transactions were Jumeirah Village, Tilal Al Ghaf, Business Bay, and Downtown Dubai

The price & demand elasticity of villas is much higher compared to apartments

Abu Dhabi Witness a Steep Decline in Rental Rates of Villas:

The UAE’s Capital also witnesses a steep reduction in the prices of villas as well as apartments due to poor market conditions and job loss caused by the coronavirus. Several properties have gone vacant as tenants left for their home country. In the UAE, residency permits are tied up to employment, and the expatriates are supposed to leave the country on an urgent basis as soon as they lose the job. 

With a substantial number of expats leaving Abu Dhabi after being laid off by their employers, the average rent for villas fell 3% in 2020, compared with a 5% drop on average for apartments as per Real estate consultancy firm ValuStrat.

Prices for Villas Rose First Time since 2015:

According to Bloomberg, the prices of the Villas based in Abu Dhabi were witnessing a downward trend from the last 5 years. However, banking on high demand for properties in the Covid era, the value of villas in the UAEs capital rose by 2%. Due to higher GDP and per capita income, villas in Abu Dhabi account for almost one-third of the total housing supply. The prices for apartments declined by 4%.

The decline in the Rental Value of the Property: 

ValuStrat data reveals that the average residential value in Abu Dhabi fell drastically by 9.5% YoY to AED772 per sq. ft. in Q4 FY20. However, the data also predicts stabilization in rents and capital values at established villa and apartment locations due to balanced new supply in the near future.

Growth Drivers:

The prominent growth drivers which favor the surge in the sales of apartments & villas in 2021 are as follows:

Positive Market Sentiments Due to Rollout of Sinopharm:

The experts predict market sentiments are expected to be positive due to the rollout of Covid vaccine – Sinopharm.

Increase in Non-Oil GDP:

The rating agency, Fitch Ratings predicts a 2.2% increase in Abu Dhabi’s non-oil GDP.

Govt. Initiatives:

The initiatives launched by the UAE government such as Golden Visa, FDI Laws, Cohabitation laws, Expo 2020, etc. will encourage millions of foreign professionals to settle in the UAE. This will spur the demand of Villas and will have a favorable impact on the economy as well as the real-estate sector.

7 Reasons for Rising Allocation of Family Offices in Real-Estate

Family offices play a crucial role in the investment and management of funds to sustain long-term wealth. Post the global financial crisis in 2008, the stock market has consistently hit its peak levels with global wealth rising like never before. Family offices have always facilitated the elite in taking control of their financial fortunes through single or multiple-family offices. As per the research conducted by Dominic Samuelson, CEO of Campden Wealth, family offices currently hold assets over USD 4 trillion globally. The credit goes to the colossal increase in the number of billionaires across the globe.

The world we live in is unpopular for its unequal distribution of wealth, which is one of the biggest reasons for the swift rise of family office culture. According to the Global Wealth Report -2019 from Credit Suisse, 44% of global wealth belongs to 46.8 million millionaires. Advent in technology and easy access to information has allowed the elites to leverage investment management solutions that were exclusive to investment banks earlier.

Family Office: What does it mean?

A family office is a comprehensive financial shop for opulent people. It serves as wealth management and financial advisor for high net worth (HNW) clients with a special focus on the “ultra-high net worth’ segment.  The “ultra-high net worth’ category is usually defined as anyone with $30 million or more to invest.

There are two main models of family office:

The Single Family Office: Single Family Office is a financial advisor that serves only one client and manages their massive fortune. This concept originated in Europe.

The Multi-family Office: Due to the emergence and implementation of innovative technologies, the efficiency of financial firms has expanded and they have started serving several clients at the same time. The multi-family Office firms serve more than one client although the client base of multi-family Office firms remains the super-rich high net worth (HNW) individuals.

Services Offered by the Family Office:

The major services offered by the Family office includes – tax planning, investment management, budgeting, insurance, wealth transfer, managing the buying and selling of properties, guiding the firms on their charitable donations, advice, concierge, and other wide range of services.

Growth Drivers:

The prominent factors that attract the world’s elite towards the family office model include – cost-efficiency, increased customization, flexibility, and greater control.

Exponential Rise in Family Office Culture in the Middle East:

The importance of Family offices is rising every day for the real-estate markets in the Middle East. In the last decade, there has been a colossal rise in the transfer of wealth from corporations to individuals in the region. According to the research conducted by the Boston Consulting Group (BCG), the privately-owned assets in the Middle East will account for US$11.8 trillion by the end of the year 2020 (report post-COVID), with the UAE, Saudi Arabia, and Kuwait, accounting for over 22% of the total.

As per the report by Campden Research in July 2019, pre-COVID there was no sign of this trend abating, with key global research, quoting that there was estimated to be 7,300 single family offices worldwide, with collective estimated assets under management of US$ 5.9 trillion. Meanwhile, the wealth of the families behind them totals a vast US$ 9.4 trillion. With such a huge pace of wealth transitioning in the hands of private players, the family office culture has emerged as a key influencer in the private wealth sector in terms of fund investors and structuring trends.

There is huge outstanding liquidity on the wealth held in Gulf nations. Around 82% is held in investable assets as compared to the global average of 60%. As per PricewaterhouseCoopers (PwC) Private Equity Trend Report 2019, 73% of private equity firms consider family offices as the potential investors in their next round.

Factors Driving Allocations of Family Offices in the Real Estate:

In the last few years, there has been a rising trend of Family offices increasing their allocations to real estate. The top reasons behind this rapid increase include – asset class outperforming other asset classes, low-interest rates paid by the banks, and the potential of wealth that real estate can create for the future.

Here are the different motivations for family offices to invest in Real-estate –

Diversified Asset Allocation:

There has been a rising trend of diversified asset allocation as several families consider real-estate and hard assets as an indispensable component of a balanced investment portfolio. Since its inception in 1950, Modern Portfolio Theory (MPT) has had a major influence on institutional investor allocation strategy. Taking the idea from the MPT, the Yale Model was developed and imitated by several institutional investors. These investors witnessed numerous benefits of deploying capital away from traditional methods such as stocks and bonds, in favor of alternative investments including hedge funds, private equity, and real estate. It has become standard for institutional investors including family offices to consider diversification and alternative investments outside of purely stocks and bonds.

Boosts Cash Flow:

Family offices prize cash flows and revenue streams in their investments. A family-office can own property based on the structure of the real estate investment which provides it with cash flow. Family offices always allure the clients to owe properties by highlighting them the opportunity to earn income on top of asset appreciation. Family offices also target those families which are least interested in investing in the real estate market through other indirect ways of investment which has a positive impact on the cash flows of the real estate firms. These involve – limited partnership funds or agreements, Real Estate Investment Trusts (REITs), mortgage securities, royalty trusts, and other real estate-related vehicles. This has a positive impact on the cash flows of real estate firms.

Lower Interest Rates:

Global investors especially from the US and Europe are exploring inflation hedges due to very low-interest rates in these countries. A list of hard assets with basic value such as – gold, land, timber, foreign currency, etc. has become a standard component of many investors’ portfolios.  Several family offices perceive the real estate sector as a method to gain from an increase in asset prices and income benefit from rising asset prices to earn income from multifamily housing, commercial buildings, and hotels.

Longer Investment Period:

One of the most distinctive aspects of a Family Office is they have a scope for long-term investment. The single-family office is under no compulsion to distribute returns to investors like LP funds. Family offices are under less pressure for achieving their short-duration gains if there is an opportunity for greater benefit over a longer investing period. They guarantee better performance because of the long-term horizon. Family office might perform poorly compared to fund or could sell at any point in time, the long-term mindset offers extra flexibility with a broader mandate than other investors.  Family offices are the best and most preferred option for the real-estate sector as it follows a longer investing cycle than public equities or fund investments and serves the purpose of long-term investing.

Highly Stable:

The Volatility Index (VIX) is the most preferred indicator to compare volatility. According to VIX, real-estate is a much stable asset class and far less volatile compared to public equities, which have gone through a very long phase of volatility in the last two decades.

Offers Direct Control over the Investments:

There has been a major shift in the desire of the elite class to directly control the investments in the portfolio. This has been the biggest growth driver in the rise of a family office. Post the 2008 financial crisis, the world was seeking an option that offers transparency. Family office emerged as a preferred choice as it facilitates direct investments. Direct investments bring transparency by allowing the investors in exercising complete control over the investments and internally managing the deal processes. In the case of smaller deals, direct investing is the preferred option to purchase real estate properties, or in buying a stake in a firm.

Limited Downside:

Family offices have emerged as a blessing in disguise for the real estate sector in the case of any market correction. They can be swiftly allocated to the real estate sector as they have limited downside. Family offices minimize the possibility of complete loss of the investment value.

Final Words:

Family offices are the need for today’s dynamic world where markets change rapidly. Not only the real-estate but every industry must increase allocations into Family offices to ensure a better and safe future. Since the dawn of the 21st century, the global economy has been trembled by the failure of Lehman Brothers, and American International Group (AIG). The billion-dollar corporations have ended up filing for bailout packages. Hedge funds ended up losing a majority of their investor’s capital.  To counter these catalogs of volatilities, investors are showing interest in investments with intrinsic value and limited downside. Undoubtedly, there is no better option than family offices. Realizing the potential of Family offices and benefits it offers, real-estate firms are increasing allocations into it. Real-estate investments provide family offices with a degree of comfort in comparison to other asset classes that have not been successful in meeting the dynamic expectations of the investors.

As they say, if there is one thing certain that’s uncertainty, rest everything is uncertain. The world of real estate and real asset investments is full of uncertainties. To minimize the level of volatilities involved in the process, the investors will prioritize investments with intrinsic value and with limited downside. This will flourish the future of family office as other asset classes were not able to provide investors with downside protection and live up to their expectations.

District Cooling Vs. Chiller Units: Which one is better?

Amid the rising focus on air quality and reducing carbon emissions, a list of initiatives is being launched by various governments across the globe to improve air quality. Their efforts are laid towards reviving their respective countries from the catastrophic effects of climate change. District cooling systems can play a decisive role in curtailing the emission levels, ensuring better air quality, and fostering a healthy environment.

Demerits of Traditional Methods of Cooling on Environment

Natural resources are running out quickly. There is an urge to preserve them for future generations. Unfortunately, the traditional methods of cooling consume a lot of invaluable resources which makes them unsuitable despite being a cheaper option.

Some of the demerits of traditional methods of cooling are:

Excessive Water Consumption

Water consumption is the prime consideration made during the selection of chiller units. The chiller units and other traditional methods consume a lot of water and thus get subjected to state regulations surrounding the reduction of water consumption. Exceeding the limits of water consumption can attract hefty penalties. 

Global Warming

Chillers units and other conventional methods of cooling require refrigerants to perform the cooling process. These refrigerants contain harmful chemicals that contribute significantly to global warming. Refrigerants absorb infrared light and trap it in the air which leads to a steady increase in temperature, and a decline in the quality of air. Traditional methods of cooling such as air-conditioning use Chlorofluorocarbons (CFCs), and Hydrofluorocarbons (HFCs) as cooling agents in the air conditioners. This increases the holes in the Ozone layer and contributes immensely to global warming.

High Power Consumption

Chiller consumes significantly high power for its operations which also shoots up the company’s energy bills. Furthermore, there is a huge amount of environmental cost associated with chillers. Due to high power consumption, the chiller releases additional carbon emissions from the power plant which increases the pollution level and degrades the quality of the environment. The assessment for power consumption and carbon emissions must include the chiller and its ancillary equipment such as pumps. 

Air conditioners also require a significant amount of energy for their operations and therefore release pollution. On average, air conditioners consume between 3000 to 5000 watts of electricity every hour. Air conditioners consume even more energy when it is warmer as extra power is used to cool the building. They are not only a costly-affair for the businesses but also have adverse effects on the environment.

Pollutes the Environment

Air conditioners have adverse effects on the environment. The ducts in the air conditioner collect dust and bacteria every time it is turned on which is very unhygienic and toxic for humans, especially for kids and the elderly.

The Use of Plastic is Detrimental

Earlier, the air conditioner manufacturers used to manufacture them with metals, however, with rising costs,  they switched to plastic, which is much cheaper. Although the use of both plastic and metal in the manufacturing process is bad for the environment, the use of plastic is far more detrimental as it is non-biodegradable and releases carbon dioxide into the atmosphere, and also causes the greenhouse effect.

How Does District Cooling Overcome these Challenges?

District Cooling is indeed a blessing in disguise in meeting Middle East cooling requirements and leading the region towards sustainability. It is far more energy-efficient, reliable, and environment-friendly compared to the conventional methods of cooling. District cooling systems (DCS) are instrumental in providing buildings located in serviced areas with distributed chilled water for convenience and to perform cooling. 

District cooling curtails the higher maintenance cost for the building owners and occupies very little space. It is far more efficient to produce chilled water in a central plant rather than using in-building equipment to minimize the adverse effects on the environment.  

Although the energy-saving from using a district cooling system differs according to its configuration such as heat rejection method, length of distribution pipeline, and plant efficiency improvement schemes, an estimated cost a building owner can save from the implementation of DCS is between 20% to 35% compared to conventional air-conditioning systems and individual water-cooled air-conditioning systems using cooling towers.

The district cooling system offers advanced processes that lead to almost 40% of energy efficiency improvements and more than 20% of lifecycle cost savings in comparison to the traditional air conditioning systems. DCS minimizes the extortionate maintenance and capital cost and reduces the demand on the grid. The conventional systems of air conditioning create 50% to 70% of the peak electricity demand in the building specifically at a very high cost. Building owners can curtail the electricity cost by avoiding the peak power demands on the grid.

Cost Difference: District Cooling vs Chiller Units

District cooling is one of the most popular methods of cooling due to its environmental benefits. It is widely used by firms, tenants, and owners at homes, retails spaces, offices, or any other available area. The prime difference between the district cooling and chiller-free is majorly the choice afforded by tenants. In the case of Chiller-free properties, tenants usually do not pay for air conditioning. Whether to choose district cooling or chiller-free depends on the choice and aim of the tenant. If the tenant is looking for an economical or cheaper option, undoubtedly chiller-free is the better alternative.

In Dubai, the district cooling cost is segregated into consumption charge and demand charge. The consumption charge is calculated depending on the usage captured by the meter of the unit at the building or premise. It is billed at a rate of AED 0.568 fils per Refrigeration Ton (RT) per hour. The demand charge is billed to the tenant, owner, or company for providing District Cooling Service to the apartment/unit at AED 750/ RT per annum. 

Here is the breakdown of District Cooling Charges:

The average monthly cost of using a district cooling system in Dubai is between AED 775 – 800 for the first owner in the first year. From the second year, it is between AED 625 to 670 per month. Here is the breakdown – 

  • Yearly Demand Charge: 6 RT (The RT load of the A/C of the unit) * 750 = 4500 AED per annum  
  • Monthly Demand Charge: 4500/365*31 = 387.50
  • Meter Maintenance Charge: AED 50 for 3 Months or AED 30 per month
  • Connection Charge:  AED 2000 (It is a one-off charge payable by the first owner of the unit at the time of registration) 
  • Administration Charge: AED 1000 (It is also a one-off charge payable by the first owner of the unit at the time of registration) 
  • Disconnection Fee:  Residential Units: AED 1000, Retail Units: AED 2000
  • Meter Testing fee: AED 160
  • VAT: 5%
Cost of Chiller charges: 

The yearly cost to a consumer for using chiller units is between AED 4000 – 5000 which comes out to AED 334-420 monthly. It is almost half of the cost of district cooling. The key components of the bill include

  • Consumption Charge: It is calculated according to the meter reading as per the usage. It will be charged at Dhs 0.568 fils per RT (refrigeration ton) per hour.
  • Demand Charge: It is a recurring yearly charge. It is around AED 750 per RT/ annually. It is billed quarterly in advance.
  • Fuel Surcharge: This charge is levied on the bill due to a rise in fuel prices. It is 6.5 fils / kWh.

Where Does Dubai Stand in District Cooling?

In the last few years, Dubai has emerged as the single largest market for district cooling in the world. The city accounts for 20% or one-fifth of the market share of all the cooling demand. Dubai supplies 600,000TR at peak capacity. There has been a shift of global policies towards energy conservation and billions of dollars have been invested in finding out novel ways to maximize efficiency and minimize the wastage of energy. 

Dubai is also planning a 30% cut in the usage of energy and water consumption by 2030. District cooling is an integral part of the city’s nine programs under an umbrella topic of Demand Side Management. Leveraging the benefits of direct cooling, Dubai is targeting a two-fold increase in its percentage market share and to deliver 14% of the 2.7 TWh of yearly targeted savings in power demand. Through a program of regulatory framework development, Regulatory and Supervisory Bureau for Electricity and Water (RSB) Dubai is planning to involve and encourage the private sector in energy supply and efficiency savings.

Predictions

With the rise in development and expansion activities in the region, the demand for district cooling is expected to surge at an exponential rate. As per the studies conducted by the global consulting firm, Booz & Co.(Former name of Strategy&), the total demand for district cooling in the GCC in 2010 was only 36 million Refrigeration Tones (RT). However, with rising population, industrialization, and economic expansion the demand for district cooling will increase almost three-fold to 100 million RT by 2030.

Abu Dhabi Department of Energy (DoE) also reveals that district cooling systems will have a very minimal impact on the environment compared to air conditioning or other traditional methods.

SPaaS – Revolutionizing the Future of Commercial Real Estate Sector

The space-as-a-service (SPaaS) is bringing structural changes to the commercial real estate industry in the UAE. There has been a paradigm shift in the operations of commercial real estate with the introduction of SPaaS. Space-as-a-service has completely revolutionized the way the commercial real estate sector used to offer services to tenants and taken off a load of rent collection from commercial landlords by fully automating the process. This will certainly increase the focus of landlords on investing more time in improving the services.

Some of the live examples of the SPaaS model are co-living, co-working, and retail wherein the landlord offers a catalog of services to tenants which allows them to effectively utilize the space. It involves almost every service a tenant needs to live a comfortable lifestyle such as fixtures, digital connectivity, staffing for operating and managing services, and furniture. The best example of the success of space-as-a-service (SPaaS) in commercial office space is WeWork – the largest commercial real estate firm that offers shared workspaces to tech. and service startups, and other enterprises. WeWork has automated all necessary functions of the office such as space form and function, lease terms, etc., and has reshaped the process of operating office spaces similar to hotels. WeWork’s business model has encouraged landlords to follow the conventional methods of operating the office to implement it. They are now briskly competing for SPaaS enterprise tenants.

What is Space-as-a-service (SPaaS)?

Space-as-a-service refers to space which is purchased on demand for a specific duration. It also means the workplace procured to provide the desired space and services required to get the job done for every individual whenever required. Space-as-a-service is the need of every organization interested in attracting, retaining, and producing highly skilled employees.

SPaaS has a far-reaching effect on the commercial real estate sector. It can bring transformation to each aspect of the real estate model, right from asset ownership to monetization of access and services including physical space. The concept of SPaaS facilitates a change in management beliefs about the design and reshape the work culture to one which improves the productivity and experiences within a firm’s real estate portfolio.

Growth Drivers

Space-as-a-service is the result of a series of technology-enabled structural changes in the commercial real estate (CRE) marketplace. Technology is playing a pivotal role in revolutionizing the way the corporate sector operates and its employees work. High-speed connectivity has been the biggest growth driver in the rise of SPaaS. The proliferation of emerging technologies such as the Cloud, Artificial Intelligence (AI), IoT sensors has made it possible to connect almost everything to the internet. Robotics have completely changed the manner in which the corporate sector and its workforce occupy and use the space. Furthermore, the rising penetration of smartphones, laptops, and tablets have also been a catalyst in accelerating the pace of Space-as-a-service.

The Changing Landscape of Office Space Occupancy

The concept of traditional office space is being replaced by hub space, home office space, central headquarters, serviced office, client office space, and co-working office space. All these methods of occupying the office space are not mutually exclusive. Several UAE-based real-estate and property management firms are using all or most of these ways to occupy the office space based on their requirements.

Space-as-a-service is of paramount importance to the real estate sector. It allows them to maximize the utilization of the space and ensure leased and owned assets are effectively utilized and unused or underperforming assets are removed. SPaaS facilitates smart investment through effective execution of space acquisition, design, or lease updates. This has a positive impact on the net present value, return on investment (ROI), and overall business performance of the real estate firm.

Space-as-a-service also fosters the speed to market of the space through portfolio modifications to minimize disruptions and reap the benefits of smart strategy. It also reduces the liability of the real estate firm by facilitating the scientific designing of office facilities to protect the user’s health and safety.

Space-as-a-service is highly flexible to adapt to the rapidly changing business needs such as mergers & acquisitions and asset management to improve efficiency and business performance. Furthermore, SPaaS also facilitates easy maintenance of the premises through timely maintenance tasks of the large-scale building to extend the life of the space.

Top Reasons to Embrace SPaaS

Users of space are demanding the physical office space to be integrated with Space-as-a-service experience. The commercial real estate industry is looking for a unique combination of technology and data-driven services to create a smart and flexible work environment. SPaaS is laying the foundation of smart office space to allow users to define and promote their firm’s core values.

Transforming the Scope of Property Management

Space-as-a-service is playing an instrumental role in transforming the role of property management and the job profile of property managers. Earlier, property managers were only responsible for maintaining the physical premises, resolving the tenant’s requests about maintenance, enforcing lease provisions, collecting rents, and producing timely financial reports. However, with the introduction of the SPaaS model, in addition to the above-stated tasks, property managers have also become a custodian of office space experience and are responsible for taking care of interior decor, social events, daycare centers, and concierge services.Space-as-a-service is becoming an apple of the eye of the young generation as it offers them the flexibility to work out of shared space without being bothered about the lease or ownership.

Reducing the Cost of Operations

It has become a hard nut to crack for the real estate sector to curb the rising cost of operations. The companies are tightening their belts to curtail their operating cost. A Space-as-a-service business model is a ray of hope for the real estate sector in this mission as it allows them to work from shared office space based on their needs. Under this model, companies are not required to maintain an office at all times. They can use office space whenever the need arises.

Higher Productivity

Space-as-a-service allows real estate companies to operate on flexible terms. Shared space will provide even more flexibility to employees as they can work from the place of their choice. It also saves the time of the employees consumed in commuting which increases their productivity.

Owning an Office at Posh Location

Space-as-a-service has made it possible for small real estate companies to own or lease office space at posh locations as they share the high cost of office space with other companies. The shared space business gains crucial brownie points in this aspect. Furthermore, using sharing space facilitates the company to have a dynamic workplace where employees are not confined to a small space which fuels their creativity and responsibility. This is indeed a positive sign for the company’s growth. Space-as-a-service also maximises the space utilization and curtails the cost of operations.

With the advent of SPaaS, the fortunes of a commercial real estate owner in UAE are highly dependent on creating distinctive user experiences (UX). The landlords have to brainstorm on coming up with creative ways such as leveraging data analytics to understand the occupant’s requirements to attract them. The shared space model is tapping into the hidden potentials of real estate and facilitating the firms in designing solutions to meet the dynamic needs of the consumers. The research reveals that by 2030, more than 30% of the corporate portfolios will be in flexible workspaces. Rising urbanization and shrinking square footage are paving the way for the real estate sector that can lease out furnished spaces to cater to the needs of the tenants.

Following a Space-as-a-service model will foster the growth prospects of the real estate firms and allows them to make optimum utilization of the available space. Without a shadow of a doubt, SPaaS will grow at an exponential pace and will be embraced by almost every commercial real estate player.

Dubai Real Estate Transactions Reach its Highest Figures Since 2013

Dubai’s real estate sector sets a new record in 2020. The secondary market transactions of the property sector crossed an astonishing two thousand mark in November & December which was the highest figure since 2013. 

According to Data Finder, December witnessed 2,485 secondary transactions worth AED 6.12 billion, which was the highest figure in the last 7 years. December 2020 figures were 9.7% higher compared to November 2020 which reported 2,179 deals, which was at the second-highest number since 2013.

The secondary sales were the lowest in April & May 2020 due to the lockdown. However, since the easing of restrictions, the secondary residential real estate sales went on to break all past records.

Annual Transactions Crossed AED 72 Billion:

There were 35,434 transactions that took place in 2020 worth AED 72.49 billion. This comprised 14,749 off-plan properties worth AED 20.31 billion and 20,685 secondary/ready properties, worth AED 52.18 billion.

There were 12,978 transactions took place in 2020 for mortgage deals worth AED87.39 billion. All of them were for secondary/ready property.

Residents Prefer to Buy Property Over Renting : 

Dubai reported the highest sales transactions – both in terms of volume and value in the Q4, 2020. The total number of transactions that took place in Q4 was 11,065 valued at AED 22.07 billion. The prime reason for this surge in sales is most of the residents now prefer to buy the property over renting it.

Top Reasons for the Surge in Transactions:

For several years, immigrants have been hesitant to buy property in Dubai or the UAE as it does not offer long-term stay back options such as – permanent residency (PR) or citizenship programs like Canada, Australia, New Zealand, or the US. However, the launch of the Golden visa program (which offers long-term residence visas to live, work and study in the UAE without the need of a national sponsor with 100 % ownership of their business) has again made the region attractive for foreign investors and immigrants. These visas are issued for 5 or 10 years and get renewed automatically. 

The launch of the Golden Visa program has changed the global perception of Dubai as a stable and immigrant-friendly emirate to work & live just like many western countries. This has attracted more investors, buyers, developers, and talented immigrants to the UAE’s real-estate sector, resulting in a colossal increase in the volume and value of real estate deals.

Furthermore, the list of other government initiatives such as – the enactment of Cohabitation laws, resuming trade relations with Qatar, hosting EXPO 2020, and 100% Ownership of Businesses by Expats, Covid vaccination, and expansionary fiscal stances by the federal and local governments have led to this magical rise in real estate transactions.

How Does Kaizen Curtail the Energy Cost at its Managed Properties?

Knowing the art of keeping the energy cost at its lowest can be a deciding factor in the triumph of a property management firm. This is very much evident in the context of Kaizen AMS. We implement innovative utility management techniques to reduce the energy cost. Leveraging both real-time and historic data, Kaizen AMS continuously monitors the energy usage of the property to take corrective actions on time and curtail the high energy usage.

According to the National Apartment Association, utility bills account for up to 30% of the operational cost of the building. Thus, utility management becomes an important area for property managers to focus on as it boosts efficiency, savings, and reduces the overall energy cost. Lower energy costs also cut down on the high rental rates as it is one of the major components of rental value.  Kaizen AMS’ invests significantly in adopting novel technologies & methods such as PropTech to reduce energy usage and minimize energy bills for the tenants. This is what makes Kaizen AMS’ managed properties an attractive residence and long-term value option for the prospective tenant. It is pivotal for property management firms to consider energy, waste, and water usage metrics that can adversely impact their business. 

Reducing energy consumption is the first thought which comes to mind of property managers when they think of curtailing energy cost and improving efficiency, however, this is not the only option. There are several other ways through which energy cost can be minimized in spite of significant usage

Regular Maintenance and Upgrades

The secret to cut down on the utility cost is to realize the importance of routine maintenance and energy upgrades. It has been found that most of the property managers consider maintenance and upgrades as an expense and do not plan or invest much into it. As they say, ‘If you fail to plan, you are planning to fail’. A vast majority of property managers fail to realize that a property with an old chiller or heating system will take a lot of time to perform cooling or heating compared to one with a new and innovative chiller. This is one of the most common reasons behind higher energy bills at UAE properties. 

Timely maintenance, replacement, upgrades, and usage of advanced materials such as efficient windows, sustainable construction materials, lighting, etc. significantly improves the energy performance of the building and also minimizes the cost of living for the tenant. 

Kaizen AMS understands that a timely proactive replacement of a decade-old chiller in the building will reduce the total cost of ownership in the coming years. Thus, we continuously invest in performing regular maintenance and upgrades as it is a big payoff and also demonstrates our strong commitment towards the safety and well-being of the tenants of the buildings we manage.

Automation 

Kaizen’s technology team automates energy usage wherever possible, which results in significant energy savings. We automate the areas where the community shares responsibilities. This includes – showers near the pool which turn off automatically and electric appliances in the common areas that operate at a lower heat and consume less water. Automating electronic appliances cut down energy usage by 30% and also reduces the extortionate energy bills.  This makes the Kaizen managed properties appealing to every tenant.

Submetering

Submetering is one of the most effective ways to reduce energy costs. It is the process in which a utility firm provides a breakdown on the basis of subunits. In case the property is a duplex with two or more tenants, an owner can request a separate electricity bill for each unit. The prime benefit of submetering units is that tenants are responsible to pay their individual utility bills and not the expenses passed by the property management firm. Furthermore, when a tenant knows they are responsible to pay their utility bill, they tend to use less energy. This not only reduces their energy bills but also conserves energy for the greater good.

Timely Monitoring of Energy Usage 

Kaizen AMS has a specialized team of energy experts who timely monitor the energy cost and ancillary expenses. We deploy advanced energy modeling software to predict the energy usage of the building based on the climate, location, construction, size, and construction material. When the usage exceeds the specified standard, the software alarms the team to take the necessary steps. The software also predicts the energy usage of the building accurately and assists the building managers in adopting the design that improves energy efficiency to maximize the overall return on investment (ROI).

Energy Modeling Software to Track Energy Usage

Kaizen’s technology team, which consists of top engineers from prestigious engineering institutions has developed an intuitive & comprehensive energy modeling software to track the energy usage of each tenant in real-time. The prime reason for the development of the software is to make sure we take necessary steps in case a particular tenant or building as a whole exceeds the set limit. This ensures Kaizen AMS always meets its energy goals every year. We are also equipped with an unconventional dashboard that continuously explores opportunities to save energy. It also monitors progress and calculates the savings from our energy conservation initiatives.

Timely Reminder to the Tenants on their Energy Usage

The Kaizen AMS’ energy efficiency team sends timely automated reminders to the tenants on their current energy usage, and expert advice and tips on how to conserve the energy efficiently.

Organizes Energy Management Studies

Kaizen AMS ties-up with energy efficiency firms to conduct energy management studies at regular intervals. We encourage our employees and concerned parties to provide their valuable suggestions on energy conservation and reward the best ideas. The Kaizen AMS’ leadership fosters a culture of innovation in its processes to ensure our clients get the lowest energy bills and we stay on the top in terms of energy conservation.

Dubai’s Real-estate is Bouncing Back Strongly from Disruptions

Despite all odds such as disruptions caused by Covid-19, Dubai’s realty sector is showing no signs of holding back. The city is soon expected to add 39,000 units in 2021. This will be an increase of 8% from 2020. In 2019, Dubai witnessed 31,000 residential units which include:  23,600 apartments and 7,400 villas.

Growth Drivers:

The foremost factors driving the demand of units include – improvement in buyer’s confidence, positive market sentiments, and decline in the property prices. As the industry is rapidly changing with continuous revisions in the forecasts, the developers are making efforts to adapt to the new normal.

The government is playing a decisive role in boosting the demand for property. There has been an exhaustive list of initiatives being launched by the government to spur the demand of the property such as – co-habilitation laws, FDI Laws, lower interest rates, Expo 2020, Golden visa reforms, and resuming the Trade Relations with Qatar. These remarkable steps have led to the development of resilience in the secondary market with an exponential rise in the transaction volumes, majorly by end-user buyers. In 2021, the secondary sales transactions are likely to be robust as the underlying demand is backed by lower capital values, flexible visa rules, and social & financial reforms.

The Impact of Covid -19:

Covid-19 disrupted the price recovery initially, however not for long. The market bounced back strongly with a surge in sales prices with values reaching the development costs in several districts. There has been a colossal rise in the demand for villas as buyers are looking for spacious properties with open areas. However, meeting the rising demand for villas looks challenging for real-estate companies.

The real-estate sector is still in the process of reviving from the headwinds caused by the coronavirus. Sales prices have started to witness resilience as in many districts value has reached development costs. 

Apartments are yet to reflect a promising future. A steep decline in the demand for the apartments will lead to oversupply which will hurt the prices. The rental values are most likely to stay low throughout 2021.

The Worst Hit Areas in Dubai:

The areas with apartment districts have received the biggest blow at prices. This includes – Downtown Dubai (-4%) and Palm Jumeirah (-4%).

Discovery Garden (-15%) and Dubailand (-15%) have been the weakest performing areas in Dubai in 2020.

Compared to the figures of 2014 when the prices were at their peak, villas dropped by 31%, and apartment districts dropped by 35%.

A Big Sign of Relief:

The good news for the UAE real-estate sector is that despite all hurdles which came in the way in 2020, there has been a surge of 7% in secondary market transactions compared to 2019 figures. The credit goes to low buying costs and favorable government policies. The last two months (i.e. December 2020 & January 2021) experienced the highest monthly transaction volume since 2018 due to multiple restrictions imposed by the government on the movement.

There has been a decline of 32% year-on-year in the demand for off-plan properties in 2020 as buyers are not in a mood to take any more risk and prefer to buy ready-to-swift properties. This is leading to several big property market players scaling back on new projects due to lack of demand.

Dubai Welcomed Twelve New Skyscrapers to illuminate its skyline:

Dubai’s iconic skyline welcomed 12 new skyscrapers over 200 meters tall in 2020 under the Covid era. This will boost the investor’s confidence and accelerate the pace of the construction sector in the region.

Global Numbers:

Globally, 106 skyscrapers of 200-meter-plus were constructed in the year 2020 compared to 133 in 2019. The experts hold Coronavirus responsible for this decline as construction work remained closed for most of the year.

China accounted for more than half of the total skyscrapers of 200-metre-plus constructed in 2020 with a figure of 56, followed by Dubai with a figure of 12. The US was at the third spot with 10 skyscrapers, and the UK with 5 skyscrapers. 

The tallest building to be completed in 2020 was Central Park Tower in New York City at 472 meters.

Tallest Buildings Constructed in Dubai in 2020:

SLS Dubai, at 336m, was the tallest building to be completed in 2020, closely followed by Jumeirah Gate at 308m and Amna Tower at 307m.

The Fate of UAE Real-estate Sector in 2021:

According to Global Data, the construction output growth forecast for the Middle East and North Africa (MENA) region will be 1.9 % in 2021 and 4.1 % in 2022. GlobalData still maintains its forecast for construction output growth in the UAE with a rebound in 2021 of 3.1 % and a promising medium-term outlook.

The experts believe that the construction sector will witness slow growth in 2021 after the havoc caused by Covid-19 in the UAE. The approval of the new Dubai Building Code is certainly positive news for the sector as it outlines a new set of construction rules with a major emphasis on reducing construction cost.

UAE Vaccinates Over 4 Million People. What does it mean for us Residents?

UAE has emerged as one of the most successful nations in executing a coronavirus vaccination drive. Over 4 million people so far have received the covid-19 vaccination. The public sector has been vaccinating the employees at a large-scale and making Polymerase chain reaction (PCR) tests mandatory for those not being vaccinated. 

What is Efficacy Rate? 

Efficacy rate measures the reduction in disease incidence in a vaccinated group compared with an unvaccinated group. For instance, the efficacy rate of 70% means people injected with the vaccine are 70% protected from getting infected, compared with those who are completely vulnerable without it. 

Covid-19 Vaccines Available in the UAE:

At present, there are four vaccines available in the UAE for use on eligible individuals against the COVID-19 infection. This includes – Sinopharm, Pfizer-BioNTech, Oxford-AstraZeneca and, Sputnik V.

All of these vaccines are available for free to all citizens and residents. 

Instructions for the Federal Employers & Employees:

The top considerations for the federal employers and employees in the UAE in the coming weeks and months will be to make coronavirus vaccines easily available. They are currently being administered in two separate doses. Employees must be provided with the necessary time off from work to obtain the vaccine and to recover from the side effects if any. 

The Economic Impact of Sinopharm on UAE:

UAE’s pace has been the fastest in vaccinating its people for Covid-19. While the western world has prioritised the older people in the vaccination drive, the UAE has given preference to the frontline workers and expanded the access to all adults in its 1 million nationals and over 8 million foreign residents.  The approach of vaccinating the front-line workers have worked wonders for the UAE in controlling the pandemic as they are more prone to spread the virus. 

Since the vaccinating process began, the UAE government has allowed residents to organize gatherings inside their homes of up to 10 people. Hotels which remained vacant for almost half a year witnessed a 70% surge in their occupancy rate since the launch of vaccination drive. The primary reason being a substantial surge in international tourism in the UAE due to a sense of normality and warm weather.     

The UAE is driving GDP & economic growth across GCC nations by the virtue of being a trade, transport, and tourism hub. Post-vaccination process, retail & tourism sectors have outperformed others in terms of revenue. UAE also achieved better inflows and outflows of goods & services and presently striving towards its aim of vaccinating the largest percentage of society in the next 2-3 months.

What Does the Clearance of Covid-19 Vaccines Means for the Communities?

The approval of the list of covid vaccines is indeed a great news for the UAE economy. Since the launch of the vaccine, several restaurants, cinemas, tourist destinations, shopping malls, entertainment venues have been made operational. This will have a profound impact on the job market. Furthermore, the launch of the vaccine will also make it possible to organize Expo 2020 in October 2021, which will attract billions of dollars of investments to the UAE economy. The grand event will also boost tourism and real-estate, and will lead to the creation of millions of new jobs in the economy.

According to Khatija Haque, Chief economist & Head of research at Emirates NBD, “Overall we expect the non-oil sectors to grow 3.5 % with headline GDP growth to be at 1.9 % in 2021.”

Rapid changes are expected to take place in the coming months with an increased focus on being vaccinated. The UAE government is planning to vaccinate almost 60-70% of its population before the end of March 2021. The Sinopharm vaccine emerges as the most preferred option due to its wider availability compared to the Pfizer-BioNTech vaccine. The launch of the covid vaccine will allow the UAE government to avoid taking any serious steps such as – lockdowns which have completely paralyzed the economies of some of the biggest G8 nations.

Covid-19 Measures Taken by Kaizen AMS for its’ communities:

The core mission behind the formation of Kaizen AMS is to create a community ecosystem which focuses on a stronger emotional connection, by offering residents exceptional experiences through sustainable, reliable, safe, and technologically advanced means. 

Ensuring residents safety and great experience have always been the top priority of Kaizen AMS. Our community managers have been instrumental in safeguarding their communities from Coronavirus Pandemic. They laid special emphasis on increasing the frequency of sanitization and cleaning across all the communities.

To ensure residents & tenants’ do not have to go out physically to contact our community managers and their issues gets resolved online, Kaizen AMS’ integrated all resident and tenant support applications with Whatsapp. This way we made sure that we  stay just a click away from our residents in need. Our applications received an overwhelming response with 98% usage. 

Our community managers also ensured social distancing norms are followed while residents travel in elevators or in common areas. They temporarily suspended any use of swimming pools and facilities and installed hand sanitizers in all the communities to curb the spread of the virus. Kaizen Community managers also ensured that all the government guidelines pertaining to stop the spread of the pandemic are followed. They instructed the security personnel to ensure that residents are wearing masks at all times while accessing the common area. We went beyond the RERA’s guidelines to protect our communities from Covid-19 because creating safe and memorable experiences is not just a statement, but the core philosophy behind the formation of Kaizen AMS.