How has Kaizen AMS made my Motherhood ‘a Memorable Journey’?

Story of our Portfolio Manager- Mrs. Jaza Naveed

Once rightly said by famous American Actress & TV presenter Ricki Lake Motherhood is the greatest thing and the hardest thing’. It is the most beautiful feeling on earth to be a mother but certainly, this journey is full of challenges and I am sure every woman who has been through this journey understands very well what I am talking about. A mother makes ultimate sacrifices while giving birth to a baby, raising him/her, and guiding the kid towards the right path and this project continues forever. It won’t be wrong to say that being a mother is a perpetual job with no scope of time off.  I think the reason women occupy the foremost place in society is because of their ability to give birth to the children and go through all hardships in raising them. This is what makes a mother a true synonym of endurance, valor, dedication, perseverance, and benevolence. 

Ideally, every section of society must contribute to simplify this journey for women; however, the reality of the world we live in is quite daunting. The first thought which comes to the mind of every working woman across the globe when she gets pregnant is ‘Will I be fired from the job for taking maternity leaves?’  So, are women correct in their thinking? The data suggests their fear cannot be completely ruled out. 

According to the 2021 Women, Business and the Law report released by The World Bank, 38 of 190 economies do not prohibit the dismissal of pregnant workers in their laws. Surprisingly, these 38 economies include the names of the world’s largest countries where almost half of the global women workforce lives. The report also reveals that discrimination and unlawful termination of pregnant workers remain pervasive practices around the world. A lack of protections like this makes it even harder for women to escape poverty and find stability. Thankfully, that is not the case with the United Arab Emirates. A vast amount of credit goes to the visionary leadership of the UAE for building the most women-friendly laws and the environment as well as to my employer Kaizen Asset Management Services for truly living up to the expectations and always going an extra mile to support every women employee in their journey to becoming a mother.

I am summarizing the ways in which Kaizen AMS has provided its valuable support to me throughout my journey of becoming a mother and did what it always does the best‘Creating Memorable Experiences’. 

1. Leadership Support

As rightly said by – Angela Ahrendts (Former Apple Inc.’s top executive) ‘everyone talks about building a relationship with your customer. I think you build one with your employees first’. Kaizen AMS’ leadership is indeed a pioneer in this art of building a personal touch with his employees. Personalization is just not Kaizen’s approach to dealing with the clients & residents but its employees as well. When I informed the top leadership about becoming a mother, they congratulated me and my family very warmly and sent me loads of gifts for the newborn to cherish and be a part of the occasion. Being a truly women-friendly organization with 47% of a female workforce, Kaizen AMS understands the challenges faced by women employees when they become mothers. I was offered an option for a flexible remote working post completion of my maternity leaves, till the time I feel comfortable working from the office. Like a visionary leader, Kaizen AMS’ CEO – Mr. Fadi Nwilati has proven time and time again that he is always happy to lend his helping hand whenever an employee needed his support.

2. Open Dialogue

As Kaizen AMS is managing a diverse workforce from over 20 countries for the last fifteen years, it truly understands that every female employee has unique expectations from the employer during the pregnancy phase. Thus, rather than assuming my expectations, as a formal practice, Kaizen set up an open dialogue with me to find out what types of support I need throughout the pregnancy phase. This provided me with an opportunity to communicate openly about my expectations and requirements to assist Talent & Human resource leadership in better designing my maternity leave plan and a flexible work option which most closely matched my needs and expectations. 

3. Providing me the Access to the Best Medical Services

Expert advice is crucial for the women in avoiding many pitfalls during the pre & post-pregnancy phase which can lead to a grand fallacy. Timely & right doctors’ advice is one of the biggest supports women needs before, during, and post-pregnancy. Kaizen AMS’ Talent team provided me with access to world-class medical experts at the company’s expense to provide me with the best prenatal and postnatal care. Furthermore, as pregnancy affects all the health systems of the women, Kaizen provided me access to some of the leading nutritionists, dentists, and physiotherapists in Dubai to offer me the best care possible.

4. Mental & Emotional Support

A study titledPregnancy and Postpartum Disorders by Mental Health America reveals that over 80% of women experience mood swings often refer as the baby blues post-pregnancy as a result of high hormonal fluctuations which occur during and immediately after childbirth. The symptoms last for a few weeks. In this situation, women experience mood swings or feelings of depression for more than two weeks after childbirth and it can be very serious if it persists for more than two weeks.  This is the time when a woman needs maximum emotional support to overcome the feeling of anxiety and depression. 

During this phase, Kaizen’s leadership and most importantly my team workers have played a decisive role and acted like my family members in providing emotional support. Some of the ways in which Kaizen offered me mental & emotional support includes – supportive interactions with coworkers before and after birth is critical, organizing online sessions & creating social opportunities to interact with the team members, and hosting online donut meetings with fellow Kaizeners to provide me with their valuable insights & tips on the best practices for the women after childbirth, hosting weekly zoom meetings to check on my health and maintain a form of connection with coworkers and supervisors so that I don’t feel left out. 

Final words

This has been the summary of my memorable experience with Kaizen AMS. I found myself very fortunate to be a part of Kaizen where employees are not just only employees but a part of the ‘Kaizen Family’. Every Kaizener makes an earnest effort to help out the fellow coworker during the challenging phases of life and try to simplify their journey. I feel there is a lot global firms can learn from this blog on the expectations of pregnant women from their employers and how to support them while they are going through a pregnancy phase. This practice will not only have a profound impact on employee morale but will also empower the employers in being a part of the prestigious list of Female-Friendly Companies.  

Top 10 Ways Blockchain is Revolutionizing the Operations of the Property Management Sector

Blockchain technology has been the cornerstone behind revolutionizing the Property Management (PM) sector. The impact of blockchain is felt in every aspect of property management – right from due diligence to streamlining the transactions to resident satisfaction.  Blockchain is driving digital transformation in the property management sector by introducing ‘pen and pencil’ businesses (which are highly reliant on archaic methods) to the contemporary ways of maintaining the record of business transactions. Blockchain is a decentralized record-keeping technology which is designed to bring more transparency to digital transactions. It provides a form of shared record-keeping which is almost impossible to tamper with. Blockchain functions through decentralized peer-to-peer platforms which build resilience against the spread of corrupted information and boost resistance to fraud. Blockchain aims at recording and distributing the digital information and ensuring it doesn’t get edited. Blockchain ensures that immutable ledgers or records of transactions cannot be altered, deleted, or destroyed through its advanced distributed ledger technology (DLT)

The use of blockchains has exploded with the creation of various cryptocurrencies. A cryptocurrency is an encrypted data string which denotes a unit of currency. It is monitored and organized by a peer-to-peer network and serves as a secure ledger of transactions like buying, selling, and transferring. Cryptocurrencies are decentralized and cannot be issued by governments or other financial institutions. Cryptocurrencies are created and secured through cryptographic algorithms and are maintained in mining where a network of computers or specialized hardware like Application-specific integrated circuits (ASICs) process and validate the transactions. 

The Implementation of Blockchain in the Property Management Sector

Like any other industry, the Property Management sector has also not been able to escape the blockchain disruption. Before the introduction of blockchain, a vast majority of business transactions (related to rents & service charges) used to be conducted offline involving face-to-face engagements with various entities. However, blockchain has played an integral role in shifting the PM sector towards digitalization with the majority of residents today making the payment using digitized portals. The introduction of the blockchain allows the property management sector to effectively market their managed properties by listing them online and connecting with the right potential tenants and homeowners. As per the report by Deloitte, the new platforms can eventually assume functions such as listings, payments, and legal documentation are cutting out the intermediaries and will allow both buyers and sellers in saving on commissions and fees charged by these intermediaries. This also makes the process much quicker as the back-and-forth between these middlemen gets cut. This will minimize the cost of operations for the property management sector several folds and will have a profound impact on the occupancy rate and reputation of the property.

Real estate Giants benefitting from Blockchain Implementation in their operations

Some of the examples of Real estate companies who have embraced blockchain are as follows – 

Here are the top ways in which Blockchain is revolutionizing the operations of the Property Management sector

1. Transparency

Blockchain has made operations more transparent and has fostered more trust. With the implementation of Blockchain, it has become very easy for property management firms to track all business transactions and documents in a few clicks on blockchain-enabled platforms. Blockchain offers a verifiable and censorship-resistant option that allows property management firms in maintaining the confidential information of the residents and conducting swift verification of their submitted documents to build a more transparent environment. Furthermore, Blockchain also brings transparency to the transaction processes by overcoming the need for wire transfers which take days to process and are costly-affair too.

2. Smart Contracting

Property Management is far more complex than many think. It’s way beyond maintaining a property or upgrading the appliances. Today, property management firms deal with a vast range of services & functions which involves processing hundreds of documents every day such as: lease agreements, maintenance requests, service charge invoices, listing agreements, offer sheets, closing documents, letters of intent, and resident verification documents to name a few. 

Blockchain empowers property management firms with a single decentralized property management system to convert all the bulky paperwork into smart contracts. This allows property management firms to fetch quick insights on prevailing rental values, tenant history, property details, payment frequency, and contractor agreements and also in reducing their paperwork significantly. Signing smart contracts over paper contracts also streamline the transaction process and overcome the need for negotiation with the stakeholders to accelerate the speed of the process. It also makes the process more transparent and secure.

A smart contract is a self-executing contract which outlines the terms & conditions of the agreement between two parties. Blockchain allows property management firms to write terms of the contract into lines of codes which are stored across a distributed and decentralized blockchain network. It also assists property management firms in easily monitoring the execution of the contract and in tracking the transactions conveniently.

3. Issuing Possession Documents & Countering Frauds

Blockchain portals have also made it much easier for property management firms to issue the possession documents of the property to the homeowners and provide them with an authenticated proof of purchase or sale of a property with valid evidence of ownership, exchange, and transaction. Blockchain has also enabled property management firms in countering instances where an illegal owner tries to occupy the property by producing false documents through its functionality of uploading the title documentation on the blockchain network. This functionality also allows the property management firms to easily view the documents and conduct swift verification of the homeowners and hand them over all the related- documents which make them feel that they are proud owners of the property.

4. Minimizing the Number of Intermediaries

The role of blockchain has been instrumental in minimizing the number of intermediaries such as: brokers, agents, escrow firms, etc. in the property sales process. The report by Deloitte titledBlockchain in commercial real estate: The future is herereveals ‘brokers, lawyers, and banks have long been part of the real estate ecosystem. However, blockchain may soon usher in a shift in their roles and participation in real estate transactions. New platforms can eventually assume functions such as listings, payments, and legal documentation. Cutting out the intermediaries will result in buyers and sellers getting more out of their money as they save on commissions and fees charged by these intermediaries. This also makes the process much quicker as the back-and-forth between these middlemen gets cut.’

Blockchain facilitates property management firms in storing and transferring the records of the residents on their platform which leads to a significant reduction in the processing time and cost for them.  

5. Assists in Leasing & Payments

Blockchain assists the real estate & property management sector in the leasing process. Distributed ledger technology allows leases to be signed as well as paid on-chain in real-time. This automates dividend and rental payments to property owners and also overcomes the need for manual reconciliations. Furthermore, smart contracts assist the sector in the automatization of different types of remittances and fees.

6. Countering Sub-leasing and other Fraudulent practices

Today the vast majority of property listing services are privately owned and lack a centralized database for cross-referencing. Due to the lack of decentralization of property listing information, property managers face a real tough time in stopping tenants who are posting the advertisements for their units for sub-leasing. However, with the help of Blockchain platforms, property managers can now easily counter the tenants who are illegally subletting their property or units and violating the terms of the contract. 

Blockchain-enabled property listing platforms have emerged as a panacea for the property managers as they automatically flag the illegal listings and allow property managers in tracking the tenants sub-leasing their property. Moving the property listing to a single decentralized blockchain-based server enables property management firms in creating a unified database which is accessible to every stakeholder. Blockchain allows potential homeowners to purchase property and make investments using decentralized finance or DeFi services.  Furthermore, as data is monitored and stored securely, it is nearly impossible for any third party to inflate the price of the property or post any fraudulent information.

7. Overcoming  Siloed Databases

Blockchain-enabled platforms also facilitate property management firms in reducing siloed databases by securing the data in tamper-resistant shared databases which compile & store all the relevant data in one place which can be accessed in a few clicks to make the process more transparent.

8. Facilitating Real estate transactions 

Blockchain has played an integral role in streamlining real estate transactions on trading platforms and online marketplaces. This has empowered both the real estate & property management sector in exploring novel ways to trade assets. Digital trading platforms like ATLANT tokenize properties and assist in online trading and in exchange the tokens for fiat currency. 

9. Simplifying Rent Collection Process

Blockchain platforms have completely revolutionized the process of rent collections for property management firms. Blockchain-enabled platforms automatically send alerts to the residents whose rent or service charge payments are pending. Blockchain-enabled platforms also facilitate property management firms in calculating and billing the service charges in real-time based on the data collected through IoT devices and electricity consumption records. This minimizes the time consumed in calculating service charges and other payments 

In the coming years, there will be a rise in property management firms embracing blockchain-enabled platforms for rent collections due to the increasing popularity of Bitcoin & Dogecoin as a mode to make service charge payments in Dubai as well as across the globe. In 2021, Samana developersa leading real estate developer in Dubai started receiving all the payments in Doge coins for its residential project in Jumeirah Village Circle. This will encourage several property management firms to implement blockchain-enabled platforms to maintain these transactions.

10. Creating Memorable Experiences for the Residents

Blockchain allows property management firms in exploring novel ways to enhance residents’ experience. Using blockchain-enabled platforms, property management firms are tracking useful data to understand the residents’ expectations to make their managed communities attractive and improve the occupancy and satisfaction rate. Blockchain-enabled platforms also provide information on residents’ preferences to the property managers to make their services personalized without compromising the data security.

Summary

The top 10 ways in which Blockchain applications are empowering the property management sector in streamlining its operations are as follows –

  1. Transparency
  2. Smart Contracting
  3. Issuing Possession Documents & Countering Frauds
  4. Minimizing the number of intermediaries 
  5. Assists in Leasing & Payments
  6. Countering Sub-leasing and other Fraudulent practices
  7. Overcoming  Siloed Databases
  8. Facilitating Real estate transactions
  9. Simplifying Rent Collection Process
  10.  Creating Memorable Experiences for the Residents

7 Ways Kaizen AMS Creates Memorable Experiences for Residents through Digital Apps.

As the competition in the UAE real estate industry is getting fierce, it has become pivotal for the developers to focus on building an unparalleled resident experience. Digital applications are a crucial factor in this success story.  The journey to create a wow’ resident experience starts with a first interaction between the resident and the property manager or between the resident and the property sales team. A great resident experience lays a strong foundation for resident satisfaction, retention, community value, higher occupancy rate, and building a truly unbeatable reputation.

 Modern residents are now prioritizing the digital experience they have with the developer or a property management firm while making a property purchase decision compared to the location of the property.

What Is Resident Experience?

Resident experience is not a process but a journey. It encompasses a wide gamut of aspects of the resident’s stay at a property right from the initial process of selecting a property for purchase or rent till they move in, reside, occupy and move out from the property. The real estate developers are investing in developing newfangled online portals and resident applications to provide comprehensive and faster access to information and offer a seamless experience to the residents.

The Role of Digital Applications in Boosting Resident Experience:

The dawn of a great digital experience starts with the first step residents take while shortlisting the property. Research by Birdeye(a leading international research firm) in 2021 titled –Why Resident Experience is Essential When Promoting Your Property’ reveals that 92% of residents read reviews before making a purchase decision. A blog by High-Level Marketing– (an international digital marketing agency) titled ‘Why Not Answering Your Phone is Killing Your Business?’ finds out that 75% of potential residents who don’t reach you on the first call won’t call back. If they can’t get in touch with anyone on your team in a timely manner, they know that the competition is just a Google search away. 

The advent of digital technologies has made the resident experience process much simpler. In today’s era of cut-throat competition, achieving the utmost resident experience has become a prerequisite for the real estate developers to drive investments, foster property sales, and boost occupancy rates. Resident experience and digital transformation have become a new business imperative. Real estate firms in the UAE are widely using mobile applications to boost resident engagement by optimizing real-time updates about facilities and by creating a sense of community. Real estate companies are also leveraging mobile applications to simplify their communication with the residents and pumping more investments in building advanced digital channels. Undoubtedly, focusing on creating an incredible resident experience is the best bet for real estate firms to thrive in the industry.

Digital Platforms – Simplifying Communication between the Residents and Property Management Firm: 

As they say, ‘Communication works for those who work at it’. Implementing digital applications in the process simplifies the communication between the residents and the property managers. This not only leads to the faster resolution of their issues but also prevents any potential conflict of interest between the residents and the property management firm for the greater good of the residential or commercial community.

One of the wisest things to do is to ensure swift communication between the residents and the property managers through digital means is by creating an online community where residents can raise their grievances and can get real-time or faster answers to their queries. I can compare this ‘online community’ to a Slack Channel where we can contact the desired person individually or contact a Group anytime just by dropping a message stating our problem. Creating an online community channel will also allow residents to get in touch with the right party without being passed from pillar to post to get the viable solution to their query.

How Does Kaizen AMS Leverage Digital Apps. to Create Memorable Experiences for the Residents?

Being the first technology-enabled property management company in the UAE, Kaizen AMS invests significantly in offering a unique digital experience to all the residents in its managed communities. This empowers Kaizen’s team in swiftly resolving the queries.

Here are the top 7 digital platforms the Kaizen team leverages to create a great resident experience –

1. Customer Communication Platforms

Kaizen AMS understands the value Live chat can bring to communication and in elevating the resident’s experience. Leveraging our advanced communication technology, Kaizen AMS offers 24/7 support services to the residents through calls, emails, and Whatsapp.  

Whatsapp Chat feature allows Kaizen maintenance and service team to transfer 70% of over 28,000+ queries received every month related to statements of accounts, proof of payments, service charge receipts, service charge collection, maintenance requests and providing them with faster response to their query within 3 minutes of getting the request.  This also significantly minimizes the resolution time for the remaining 30% of the queries and elevates the overall resident’s experience.

To learn more about the impact created by our Whatsapp Chat option for the residents at Kaizen AMS managed properties,  please go through our recent case study5 Ways to Achieve Resident Satisfaction with Personalization through Technology.

2. SNAG Report

Kaizen AMS leverages state-of-art snagging software called ‘Snag Report’ to identify and list every snag in a unit that has recently been completed. These snags are then assigned digitally to the various contractors, pushed to their phone app., allowing access to live data on the progress of snags. Kaizen AMS tracks all snags and ensures that the property is snag-free while handing it over to the homeowner or the tenant.

Sharing the inspection reports digitally with the residents or homeowners is also a great way to nurture good resident relations. Furthermore, it brings more transparency to the process and makes the residents aware of the actual condition of their property before they move in.  Sharing snag report digitally is also an environment-friendly practice.

3. Transactions & Requests

Transactions & Requests feature plays a crucial role in simplifying the resident journey – right from the time residents move into a Kaizen-managed property till they move out. Transactions & Requests allow the residents in getting a faster solution to all their requests in a few clicks – just by filling a form on their laptop or mobile phone for all the requests pertaining to – move-in/move-out forms, work permit forms, access card requests, barrier remote request, viewing the property, and in booking the amenities in the property such as: Tennis CourtsTransactions & Requests is also a simple way to minimize the number of emails back & forth as residents can upload their documents and can track the progress of requests or queries. 

Transactions & Requests offer residents a truly digital & seamless experience and a timely resolution to their issues without compromising the comfort of their home. This results in a significant increase in the overall resident’s satisfaction.

4. Dashboard to Control Energy Usage

Kaizen AMS lays special emphasis on minimizing the energy usage in our managed communities to reduce the overall operational cost as this has a profound impact on reducing the services charges & other maintenance costs for the residents.  To meet this objective, our specialized team of energy experts has developed advanced dashboards. The Kaizen team also monitors the energy usage of a building and designs effective plans to control it when it increases a certain specified limit. Kaizen AMS works with specialists to 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). An online dashboard for monitoring and managing multiple building projects provides residents with access to see and manage their data. 

To learn more about how Kaizen AMS reduces energy costs at its managed communities, please read our article – How Does Kaizen Curtail the Energy Cost at its Managed Properties?

5. ‘Talk To Business Development’ Option’

Digitization is an integral aspect of Kaizen AMS’ business operations and being driven by technology is among our core values. Leveraging all types of digital channels, we strive to make it simple for our clients to reach us. Our potential clients can directly get in touch with our Business Development team by clicking on the ‘Talk To Business Development’ tab under theContact uspage on our website.

At Kaizen AMS, we make a positive difference to the lives of our clients & customers by offering unparalleled customer services to create those long-lasting experiences.

6. Video Call with your Experience Manager

Taking the standards of the resident’s service to an all-new level, Kaizen AMS offers a ‘Video Call with your Experience Manager’ service to the residents to provide them a real-time response to their concerns. ‘Video Call with your Experience Manager’ service also provides assurance to the residents that there is someone to take ownership of their issues and provide them the correct and timely response whenever they are in need.

Since the launch of this service, Kaizen AMS has witnessed a substantial rise in its resident’s satisfaction scores and the occupancy rate at its managed communities.

7. Surveys and Resident Feedback

Kaizen AMS conducts frequent surveys & organizes feedback sessions to capture the response of the residents about their experience of living at Kaizen-managed communities and quantify the responses on Net-promoter score (NPS). 

The insights gathered from the surveys assist our Experience Managers and the top management in analyzing the impact of our initiatives towards creating a great experience for the residents. Furthermore, surveys also allow our Experience Managers in identifying any areas of concern and taking immediate action to fix them. Surveys and feedback sessions have been an invaluable tool for our Experience Managers in elevating its standards of resident excellence and attracting new residents to its managed communities to boost its occupancy rate, revenues, and brand image.

Summary

Resident experience has always been the talk in the UAE real estate sector. With the advent of technology and the rise in competition, the term resident experience has gained momentum and has become an integral factor. It has become a win-win situation as it makes the property more attractive which is indeed good news for the developers and assists residents in getting a unique experience and faster solution to their concerns.

Leveraging digital applications in the process of serving residents often leads to an incredible experience for them. Digital means can provide a faster solution to the residents for all their issues, questions, and concerns which have a profound impact on resident satisfaction score, retention rate, community value, occupancy rate, and on developer’s reputation.

Being a technology-enabled property management company in the UAE, Kaizen AMS invests significantly in building innovative platforms and technology mediums to provide unparalleled and distinctive digital experiences to all the residents in its managed communities. 

Some of these digital tools include –

  • Customer Communication Platforms
  • SNAG Report
  • Transactions & Requests
  • Dashboard and Meters to control energy usage
  • ‘Talk To Business Development’ Option
  • Resident Directory
  • Video Call with your Experience Manager
  • Surveys and Resident Feedback
  • Visitor Management and Pre-Registration

How is KAIZEN AMS contributing towards Dubai’s vision of a ‘Net-Zero Emission’ City

A few weeks ahead of the UN climate summit, COP 26, the UAE announced its Net Zero by 2050 Strategic Initiative’, on October 7, 2021, during the auspicious occasion of Expo 2020 Dubai at UAE Pavilion in the presence of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. 

Net-Zero by 2050 Strategic Initiative’, reflects UAEs true commitment towards minimizing the impact of its momentous economic growth on the environment.  As a part of the Net Zero by 2050 Strategic Initiative, the UAE will invest over AED 600 billion in renewable energy to minimize carbon emissions and move the nation towards cleaner energy. 

UAE Becomes First Gulf Country to Commit to Eliminate Net Zero Emission:

With this move, UAE has become the first of the Arabian Gulf to commit to eliminating carbon emissions within their country.  Carbon emissions increase the temperature of the planet and are detrimental to the life and health of every earth dweller. 

The UAEs net-zero initiative 2050 is also in line with the Paris Agreementa legally binding international treaty on climate change that aims to reduce greenhouse emissions and minimize the rise in global temperature to 1.5 C compared to pre-industrial levels. Net-zero initiative 2050 will strengthen the pace of energy transition in the region and will have a profound impact on the global image of the UAE and portray it as a nation truly committed to the betterment of the environment in the eyes of the world.

Steps Taken by Kaizen AMS in Building a ‘Net-Zero Emission’ Dubai:

Being a sustainability-driven firm and a proud corporate member of the U.S. Green Building Council, Kaizen AMS(a tech-enabled property management firm) invests significantly in protecting the environment from the catastrophic impacts of building emissions. 

In line with the vision and directives of His Highness Sheikh Mohammed bin Zayed to promote the transformation of Dubai to a carbon-neutral economy by 2050, Kaizen AMS has implemented several best practices to minimize the energy consumption of its managed communities. We have a dedicated Energy-efficiency team that regularly monitors the energy consumption in our managed communities and also research on the ground-breaking technologies and ways to minimize the emissions produced by the Kaizen AMS managed communities. We recommend the best energy-conservation practices to the top real estate developers we work with. 

Kaizen AMS also shares the best practices to minimize the energy usage and the impact of the built environment through its one-of-its-kind thought leadership Blogs & Case Studies to bring the UAE real estate sector one step closer to the vision of HH Sheikh Mohammed bin Zayed. 

Some of these thought-leadership pieces are as follows:

  • The Economics of Operating a Skyscraper

Measures Adopted by Kaizen AMS to Reduce Emissions:

As global companies are committing to the Net Zero Coalition to combat Climate change, and as more companies are becoming more environmentally conscious, Kaizen AMS has begun to see tenants asking about energy efficiency and environmental sustainability while enquiring to lease a property

The best practices adopted by Kaizen AMS at its managed communities to make them net-zero emission are discussed below:

Automation:

  • Automating the areas of the community shares responsibilities such as: showers near the pool which turn off automatically 
  • Implementing the controls and equipment to measure consumption through BTU meters, BMS systems, and IoT sensors and ensuring they are being run by qualified people.
  • Automating electronic appliances to reduce energy usage by 30% and also minimize energy bills of the residents
  • Installing sensors in the Washrooms 65% saving

Timely Monitoring of Energy Consumption:

  • Monitoring the consumption on weekly basis to discuss current month savings and next month goal
  • Conducting timely internal energy audits
  • Modeling the preservation of the building elements

Upgradation & Maintenance:

  • Upgrading the existing mechanical system such as: air conditioners
  • Conducting regular maintenance and upgrades of the building equipment
  • Ensuring windows are installed correctly to prevent any possibility of air infiltration or water damage to boost energy efficiency
  • Conducting low-emissivity glass coatings to minimize the UV & infrared light passing through the glass to prevent fade damage. This practice keeps the interiors cool in the hot weather and retains the warmth in winters.

Analysis & Consulting:

  • Analyzing the data to optimize to extract value 
  • Seeking the advice of specialist energy management companies to come in and optimize further to extract deeper value 

Following the Basics:

  • Using long-lasting products to limit the need for material replacements during building life-cycle 
  • Installing energy-efficient LED lights
  • Turning off Fresh Air Handling Unit (FAHU) after hours as well as on weekends in the common areas to conserve energy
  • Turning off Chilled water (CHW) pumps after office hours i.e. after 8 pm
  • Keeping  Staircase and corridors lights turned to the minimum
  • Recommending developers to use advanced materials such as efficient windows, sustainable construction materials, lighting, etc. 

Impact of Kaizen AMS’ Efforts in Reducing Carbon Emissions:

The impact of the efforts laid by Kaizen AMS towards minimizing the energy consumption and emission level of its communities has come up with flying colours. Our utility expenses were reduced by AED 1 Million within a year i.e. from AED 15.5 Million in Q3, 2020 to AED 14.5 Million in Q3, 2021

Our top 9 communities have witnessed up to a 17.2% decline in their energy consumption between Q3 2020 & Q3 2021. Kaizen AMS-managed communities in Dubai Marina, DIFC, Palm Jumeirah, Dubai South, and Dubai Land have been at the forefront in cutting down their carbon footprint by leveraging the practices discussed above. 

Our initiatives to reduce carbon emissions have resulted in a decline in our operating cost which has reflected positively on our net revenues for FY 22.

Here are the details on the percentage decrease in Carbon Footprints at our top Communities between Q3, 2020 and Q3, 2021:

Queue Point witnessed an exponential 55.1% decline in Carbon emissions between Q3, 2020 & Q3, 2021, followed by Murano Residence with 29.4%, Mag 560 with 25.2%, and Hyati Avenue (APTS) JVC with 19.8%. 

Shoreline 7/8 Palm Jumeirah has reduced carbon emissions by 17.1% followed by Sparkle Tower with 15.7%,  RT 10 Hercules DubaiLand with 13%, and Sky Garden – DIF with 10.7%.

Park Avenue Silicon Boulevard was the only one to witness an increase of 31% in carbon emissions due to a substantial increase in its occupancy rate which increased the demand for Electricity resulting in more carbon emissions. Since then, Kaizen’s Property Managers at Park Avenue Silicon Boulevard have deployed advanced Building Automation and Carbon emissions control technologies to minimize the level of emissions.

Total Carbon Emissions at Top 9 Kaizen-managed Communities:

Kaizen-managed communities have been highly successful in minimizing the overall carbon emissions. 

  • At Sparkle Tower, the carbon emissions plunged from 682,346 Kg CO2e in Q3, 2020 to 575,070 Kg CO2e in Q3, 2021.  
  • SkyGardens has also reduced carbon emissions from 461,453 Kg CO2e in Q3, 2020 to 411, 963 Kg CO2e in Q3, 2021
  • Shoreline 7/8 Palm Jumeirah has minimized its carbon emissions from 256,980 Kg CO2e in Q3, 2020 to 212,946 CO2e in Q3, 2021
  • RT 10 Hercules DubaiLand has decreased its carbon emissions from 451, 556 Kg CO2e in Q3, 2020 to 392,447 in Q3, 2021
  • Queue Point has also witnessed its carbon emissions plunging from 35,561 Kg CO2e in Q3, 2020 to 392,447 in Q3, 2021
  • Park Avenue was the only one to show an increase in carbon emissions from 224,750 Kg CO2e in Q3, 2020 to 294,442 Kg CO2e in Q3, 2021
  • Murano Residence reduced its carbon emissions from 191,373 CO2e in Q3, 2020 to 135,138 CO2e in Q3, 2021
  • At Mag 560, carbon emissions fell from 31,095 CO2e  in Q3, 2020 to 23,251 CO2e in Q3, 2021
  • Hyatt Avenue reflected a decline in carbon emissions from 303,709 CO2e in Q3, 2020 to 243,487 in Q3, 2021

**The reduction in Carbon Footprints has been calculated based on the figures stated on the DEWA bills of these Communities.

Kaizen AMS Reinforces its position as the ‘Most Customer-Centric Company’ in the Industry

We are delighted to share, Kaizen Asset Management Services (Kaizen AMS), has been recognized across various categories at the prestigious International Real Estate Community Management Summit (IRECMS) Awards held on the 8-9th December 2021. The winners were announced at JW Marriott Marquis Hotel Dubai where the Awards Ceremony took place. 

IRECMS Awards is an initiative to recognize UAE-based companies that are delivering outstanding results in the field of Community Management, Facilities Management, Property Management, and Real Estate in general. IRECMS Dubai Awards is an authentic platform that will recognize meritorious efforts, regardless of the company size and scale. It comprised 15+ categories which were vetted by a Jury and Advisory Council comprising global leaders within Community Management.

Kaizen AMS was awarded as the winner in the category Most Customer-Centric Company of the Year, for its continuous investment in innovative technologies to improve the overall customer happiness by simplifying our communication process with the residents through new and existing communication technology. Kaizen overcame all odds and bottlenecks by deploying its eccentric technology to maintain the utmost resident satisfaction. This comes as another feather in Kaizen’s cap, after winning the Customer Happiness Award at the SBEF Awards only a few months earlier, further reinforcing Kaizen’s Customer-Driven approach of keeping the customer at the heart of its existence.

On the occasion, Fadi Nwilati – the CEO of Kaizen AMS said, “I am receiving this award on behalf of 100 Kaizeners who are dedicated to innovate and deliver excellence to our customers. On behalf of Kaizen, I wish to thank the organizers and the judges for recognizing the leaders in this industry and I would like to dedicate this award to our 23,000 and growing customers without who’s feedback, positive and negative, regular interactions, trust, and support – we would not be able to point out, what it takes for us to make the experience best for them.”

Additionally, Kaizen AMS was awarded the Runners-up position in the categories of Best Crisis Management Initiative of the Year for the initiatives in restricting the spread of the Covid-19 pandemic across its 100+ managed communities, and the residents remain uncompromised; and Best Property Management Company of the Year for facilitating swift and hassle-free communication between the residents at its managed communities and Property Managers by implementing its revolutionary Whatsapp Chat feature, maintaining higher occupancy rate and resident satisfaction, and adopting greener technologies to protect the environment and minimize energy consumption. 

Kaizen as an organization was recognized for showing agility in adapting to newer, innovative ways to continue serving their customer needs, especially in the constrained times of pandemic while expressing empathy to the unique needs of the customers.

Other categories where Kaizen was nominated as a finalist included Best CM Company of the Year and Best Implementation of Technology.

Analyzing the Impact of Acquisition of Owner’s Association Firm on Relevant Stakeholders

The acquisition can be both blessing and a curve for an Owner’s Association (OA) company. An acquisition can strengthen the owner’s association firm client base, enhance the quality of the services, and can minimize the marketplace competition. It can also lead to technology transfer which can curtail redundant costs, increase market share, minimize competition, foster innovation, boosts profit margin, increases brand visibility, offers access to new resources & human capital, and can have a favorable impact on the stock prices of the owner’s association company. 
However, as once said by legendary English playwright & poet, William Shakespeare “all that glitters is not gold”, that’s exactly the story with the acquisition of an OA company. Despite its benefits, the acquisition of an owner’s association company also has manifold disadvantages. Some of them are discussed below –

Impact on the OA Company:

Cultural Differences:

 It can create serious problems if the culture and values of the acquired owner’s association company don’t align with the acquirer. There is a high possibility that the management of the acquired company has a completely different approach to managing the business, tenants, and all the stakeholders. It can create a conflict of interest and can increase the debt load of the acquirer.  

Conflict of Interest:

There can also be a conflict of interest in the plans and approach in the way to serve the stakeholders between the two companies. The acquirer OA firm might have plans to expand the business nationally & internationally while the acquired firm may consider savings or reducing costs as its growth strategy. This can result in bringing resistance within the acquisition that can undermine the great efforts being made.

Adverse Impact on the Building’s Performance & Property Value:

There is always a risk involved if the new management is unable to manage the building it was managed before the acquisition. A lot is dependent on the priorities of the new management of the OA firm.

Several bigger owners’ association firms have completely different priorities. They lay more emphasis on cost-optimization rather than operational excellence to quickly become an apple of the eye of the developer. To achieve this, these OA firms allocate fewer resources to each task involved in the building’s operation to reduce the cost. This practice might save some money but can maximize the workload of the employees which can adversely impact the performance of the building and can also take a toll on its property & rental value. Cost-cutting practices can also have a disastrous impact on the mental health of the workers which can hamper the quality of their output and building’s performance.

To know more about the other factors which are detrimental for the building’s value, go through our article – Why Your Building Won’t Last for 30 Years?

Impact on the Employees:

Acquisition of an owner’s association company can have a traumatic impact on the employees’ performance. Change of leadership can lead to poor management of employees which can hurt their performance. 

Here are the other challenges employees will have to face due to the acquisition of an OA company – 

Ideological Differences:

There can be immense ideological differences between the management of the acquirer and the acquired company. Their working styles might not sync with each other. This can also prove detrimental for the future of the acquirer irrespective of its gains derived from the acquisition. The move can also create resentment among the employees of both of the companies and can foster antagonism. 

Duplication of Job Responsibilities:

Acquisition of an owner’s association company can also lead to employees duplicating each other’s responsibilities. There can also be confusion on the new job profile with many employees performing the same responsibilities. This can also have an adverse impact on the cost of operations of the building and a decline in employees’ productivity due to a lack of clarity on the responsibilities.

Layoffs:

One of the most catastrophic impacts of an acquisition on the employees of the acquired company is layoffs. When the bigger owner’s association firm acquires the smaller, it performs restructuring at a very large scale which involves layoffs to bring process efficiency. However, layoffs have damaging impacts on the morale of the existing employees and they also start fearing for their job. This can have an ugly impact on their productivity as well as their well-being and also create employee dissatisfaction if they don’t like their new role.

It is always advisable to maintain 100% transparency with the employees in case of acquisition and clear any type of uncertainty in their minds which can negatively impact their performance. Provide them clarity on the merged corporate culture and offer them training on their additional job responsibilities.

Impact on Developers

Legal Challenges & Lawsuits:

Acquisition of an owner’s association company can also invite legal challenges for the developers. Without a doubt, developers have a vast involvement in the day-to-day management & operations of the building. They closely liaise with the owner’s association company to ensure the interest of the building and residents is not compromised at any stage. However, this involvement also invites legal challenges as the new owner’s association firm might not be convinced with the developer’s decisions on high operational expenses, lower budget for the building maintenance and common areas, low assessments on new units, and many other issues. This situation can create several legal challenges for the real estate developers and could result in hefty lawsuits.

Impact on the Relationship Management:

With the passage of time, developers form a great relationship with the executives of the owners’ association firms. This relationship works wonders for the residents in multiple ways. It assists in streamlining the process by efficiently fulfilling the expectations of the residents. Furthermore, better relationships between the developers & OA firms ensure faster implementation of the right technology, better governance of the property, transparent communication, and above all faster resolution of residents’ grievances, resulting in improved resident experience.

However, the change of management due to the acquisition of the owner’s association firm means developers have to invest more time in building those relationships again. This scenario can result in delays in the resolution of the resident’s issues and can impact the resident’s overall satisfaction with the property. Furthermore, it often leads to a substantial decline in the occupancy rate and lower revenues for the developers.

Impact on Owners

Fluctuations in Rents:

The entry of new owners’ association firms can lead to an increase in rents which might lead to more burden on the tenants & residents and can result in higher tenant turnover and a lower occupancy rate. This leads loweto r revenues for the owners.

Furthermore, there can be disagreements between OA and the homeowners on the different ways to maintain the property. Owners’ association firms might have contrary views concerning property should be maintained, implementation of technology or automation, or launching new initiatives to keep the look of the property modern & unique. However, such practices lead to an increase in the operational expenses of the building resulting in an exponential surge in the rents & the service charges which are not well-received by the residents & tenants. 

Poor Services:

At times, residents have to face the brunt of the acquisition of the owner’s association firm. The acquisition often leads to the change in management as well the employees dealing with their service requests and there is always a dilemma in their mind whether the new OA management will be able to deal with their issues professionally as they were dealt with by the previous management. In case, the new OA management fails to stand tall on its responsibilities or what is expected of them, it can lead to delays in the resolution of their issues or service requests, leading to an increase in the resident’s dissatisfaction.

In conclusion, most of the top executives in the real estate sector are only aware of the merits of the acquisition of an owner’s association company. The objective of this article is to make them aware of the demerits as well as to ensure they make a wise and calculated decision.

For more informative articles related to UAE real estate industry, please visit https://www.kaizenams.com/blogs/. Follow Kaizen AMS  on LinkedIn, Facebook, Twitter, and Instagram

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.