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. 

Digitization: Revolutionizing the Operations of the Real-Estate Sector

Digitization is a buzzword in the UAE property realm and technology industry today. The real-estate sector is extensively adopting emerging technologies such as PropTech, Artificial Intelligence, Robotics, Virtual reality, etc. to offer a seamless experience to all the stakeholders involved.  

The advent of digital technologies has made it much easier and time-saving to access the property market. A user can now access all the required information that will help him make a decision of buying, selling, or renting. The interaction takes place through property applications and search engines such as: Bayut, Zillow, etc.in just a few clicks. Ease of use is the prime factor driving the usage of digital means in the real-estate sector.

Commonly Used Digital Technologies in Real-estate Sector:

Some of the prominent digital technologies which are revolutionizing the real-estate sector in the UAE and across the globe are as follows: 

Augmented Reality:

Augmented Reality or AR has proved to be a boon for potential buyers especially in the Covid-19 era. AR facilitates the realtors in organizing digital tours of the site for potential buyers rather than physically visiting the property and risking their health. Augmented Reality applications also allow users to take a quick look at property layouts from the comfort of their own homes. The potential buyers can view the condition of the property and all its salient features using their smartphone, AR headset, or tablet. Due to its speed and convenience, augmented reality has been highly successful in enhancing the overall customer experience of the real-estate sector’s clients and customers. Some of the most popular AR real-estate applications are RealAR Places and Commercial Real Estate. 

Big Data Analytics:

The role of Big Data Analytics has been pivotal for realtors in analyzing buyer’s behavior and gaining valuable insights into the type of property they prefer. It also allows realtors in staying updated with the prevailing buying & selling trends in the market and in predicting future buying trends. This allows realtors to develop properties as per the consumer’s expectations and ensure no property is left unsold. 

Big data analytics also assist potential buyers throughout their decision-making process for their ideal purchase.

Chatbots:

While making the purchase decision, potential buyers visit several online listed property websites to discover the properties that most closely match their requirements. The process is very bulky and tedious for the buyers as it involves calling the customer services every time to have their questions answered.Artificial intelligence (AI) powered Chatbots are the revolutionary innovation that allows potential buyers to get quick answers to their questions in just a few clicks. The moment buyers access the online portals, AI-Chatbots appear on their screen ready to assist them in finding out the answers to the queries.  AI-Chatbots facilitate the buyers in making constant comparison during the process of property search. 

AI-powered Chatbots also assist real-estate brokers in connecting with potential buyers. With AI-Chatbots, real-estate brokers can swiftly resolve all the queries received from the potential buyers on their web portals which often results in an appointment and later converts into a sale. AI-Chatbots allow real-estate brokers to expand their sales & profits in a minimal time and take off their workload for them to focus on urgent and productive tasks.

Blockchain:

In the last few years, there has been an exponential rise in fraudulent property transactions. Millions of buyers globally have fallen prey to the malpractices adopted by realtors. Furthermore, there are also errors committed by the realtors such as updating incorrect property title, challenges in accessing deals, etc. which delayed the closing process. 

Blockchain technology is a savior for buyers as it offers data transparency. It operates on the concept of sharing ledgers which supports peer-to-peer transactions without needing central administration. ‘Encrypted Consensus’, without the meddling of third parties, is the real essence that makes Blockchain technology an apple of everyone’s eye in the real-estate sector.

Digital Architecture:

The foundation of strong architecture highly depends on its fluid designs to get the knack of different angles, fragments & curves. The implementation and usage of digital tools at a wider scale in the form of architectural designing software is working wonders for the building architects in creating robust and efficient building designs. Some of the popular digital tools used by architects globally include – AutoCAD, ArchiCad, RHINO 3D, BIM (Building Information Modeling), 2D – 3D modeling softwares, etc.

Role of digitization  in the Covid-19 Era for Real-estate Sector:

The global pandemic – COVID-19 has halted the operations of every industry and the real-estate sector is no exception. There has been a significant decline in construction activities across the globe since April 2020 due to the safety reasons of the workers. In these turbulent times, digitization  has emerged as a great savior. The real-estate developers are leveraging emerging technologies such as – Robotics and Artificial Intelligence to ensure the construction process remains uninterrupted. The real-estate industry is using drones on a large scale to perform onsite evaluations and surveys. 

Global real-estate firms are resorting to cost-cutting measures to overcome the massive business losses caused due to the pandemic. The top priority of the real-estate head honchos is to curtail the expenses on creative marketing, advertising, and content production as these activities do not generate any direct revenue. They will be choosing digital platforms & social media channels to advertise their upcoming projects which are still more cost-effective than television advertisements or other modes to promote their products. Certainly, digitization  has a crucial role to play. A shift towards digital marketing will yield fruitful results for the real-estate sector in terms of cost and business expansion. 

There has been an exponential rise in the demand for PropTech solutions from the real-estate sector as the realtors are eager to leverage data to unlock profitability and galvanize their user experience (UX). Digitization or digital technologies will complement the UAE real-estate sector by providing buyers and realtors instant access to insights and tools, for agile customer engagement. Digitization will facilitate the real-estate sector to integrate with a global market and make their business operations more transparent. It will drive a 360-degree transformation of their sales and customer engagement. Without a shadow of a doubt, embracing digitization  is a win-win situation for both realtors and the buyers.

Digitization at Kaizen AMS:

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. Through the ‘Contact Us section on the Kaizen AMS website, our potential landlords & investors can get in touch with the business development team to explore options to start business with Kaizen. At Kaizen AMS,  we make a positive difference to the lives of our clients & customers’ by offering unparalleled customer services to create those long-lastingMemorable experiences’.

Expo 2020 Dubai to Catalyze the Pace of UAE’s Real Estate Sector

As the countdown for Expo 2020 Dubai begins, the real estate sector is getting ready to make the most of this opportunity. The city has emerged as the most attractive destination for investment especially in the real-estate sector in the last decade due to the higher rate of returns and zero tax on investment — a combination that does not exist in any other part of the world.  Starting from Friday, January 22, 2021 UAE residents and tourists are allowed to visit  the Expo 2020 Dubai’s ‘Terra — The Sustainability Pavilion’ for Dh25 per ticket. The Pavilion’ will focus on the most trending topics today such as – climate change, reducing the carbon footprints, environmental impact, solar energy, exploring other sources of energy, finding out new and innovative irrigation techniques, including a greywater recycling system to reduce water use in the landscape by 75%, and working towards providing real-life solutions to help preserve the earth for future generations

Growth Drivers:

There are a lot of expectations of the real estate industry from the EXPO 2020  due to a list of favorable policy reforms and schemes launched by the UAE government such as: the Golden card visa, investor visa, 100% foreign ownership for enterprises, easy payment plans, long-term residency options for professionals, and the flexibility offered by financial institutions in debt repayment, and foreign retirees scheme. 

Furthermore, the success of Expo 2020 will also get a boost from the recent venture of ICD and Dubai South to launch the Dubai Global Connect (DGC) initiative which is launched to connect global wholesale buyers and sellers. DGC is a wholesale market platform that links buyers and sellers globally. The initiative will have a favorable impact on the competitiveness of the real estate market, infrastructure, economy, trade flow, which will spur the sales of the real-estate sector. These schemes will boost investor confidence and foster more investment into the UAE real estate market.

Forecast & Predictions:

The cost of constructing the expo site and related infrastructure is estimated to be US$6.9 billion. The Expo is predicted to attract significant investments to the UAE economy of Dubai. Here are some of the predictions on the impact of Expo 2020 on UAEs economy.

  • Ernst & Young (EY) report – 2019 predicts that the Expo 2020 Dubai will contribute AED122.6 billion of gross value added (GVA) to the UAE’s economy till 2031. The grand event is also predicted to support up to 905,200 full-time equivalent (FTE) job-years in the UAE until 2031, which is equal to approximately 49,700 FTE jobs per annum.
  • The EY report also expects the Small and medium-sized enterprises (SMEs) are estimated to receive AED 4.7 billion in investment during the pre-Expo phase, which will support approximately 12,600 job-years.
  • According to Jones Day analysts, the Expo 2020 will generate approximately US $23 billion (AED 84.5 billion) for the emirates, which is equal to 24.4 % of Dubai’s GDP between 2015 and 2021. Jones Day analysts reached these figures by calculating the total estimated spend by the government, participants, visitors and general commercial activity related to the event. 
  • Jones day report  also predicts that, over the next six years, the UAE could attract as much as US$100 billion to US$150 billion in foreign direct investment across a range of industry sectors, including financial services, infrastructure, construction, real estate, hospitality, tourism, and transportation.
  • The event organizers predict that during the peak six-month period of the World Expo 2020, the largest event to be held in the Arab World is predicted to add the equivalent of 1.5 % to UAE Gross Domestic Product.

Expo 2020 to Spur UAE Economic Growth to 4.5%:

The Expo 2020 will be a big push for the UAE economic growth which is under 2% in 2020. The experts predict that Expo 2020 will take UAE economic growth to new heights with GDP growth surging to 4.5% over the next few years.

Expo 2020 will have a favorable impact on the job market and create a pool of opportunities in every sector such as real estate, property management, infrastructure, travel, tourism, engineering, development, and architecture.

A Big Push for UAEs Real Estate Sector:

Real estate gurus predict that Expo 2020 Dubai will expedite the pace of growth of the UAE real estate market. The rising interest of Chinese and Indian investors due to lucrative government policies is indeed great news for the UAE real estate sector as well as for the property management firms. 

According to the Arabian Post, so far, Expo 2020 planners awarded 47 ok construction contracts worth AED 11 billion to organize the event. Expo 2020 Dubai will also boost the average price of the residential properties in Dubai in the range of AED 1,000 to 12,000 sq. ft. 

The real estate experts expect a vast transformation to take place in Dubai property value and sales amid Expo 2020 Dubai. The ‘Expo effect’ will lead to sold-out hotel rooms and stimulate the job market. The grand event will ensure that the UAEs real estate sector thrives despite market fluctuations such as declining oil prices, the introduction of VAT, and the recessionary phase due to Covid 19. 

Expo 2020 will foster tourism in Dubai which will result in a surge in occupancy rate, boosting the short-term rental market. The government expects this momentum even after April 2021, banking on its new visa reforms and other favorable schemes. 

Concurrently, the property market is also expected to meet the demand-supply gap on the back of affordability in both sales and rentals. 

In addition, the Dubai Land Department (DLD)  can play a prominent role in the growth of real-estate industry as it looks forward to contemplating tokenization of real estate units. This will open doors for foreign investors and induce price-stabilization. The Expo 2020 will be graced with the presence of affluent venture capitalists, real-estate aficionados, and potential expats offering Dubai an auspicious opportunity to showcase all it has to offer on a global stage. Along with residential properties, commercial developments are also being planned in the allocated 1.5 million square feet area, with IKEA and Ace Hardware already established in Dubai South and Siemens.

The Expo 2020 event is expected to boost the real estate sector in UAE due to positive investor sentiment and a surge in economic activities. The event will be a major push for the residential property prices in Dubai which are on a downward trend since 2017. 

Expo 2020 is expected to add more than 60,000 new properties to the market before its launch. The sector will also have a profound impact of favourable government policies such as – easing of ownership and visa regulations, over recent months. This will work wonders for the real estate industry and create even more favourable conditions for real estate growth and development. The grand event will have a favorable impact on the prices and will attract more investment in the near future. 

How Can Property Management Firms Mitigate the Business Impact of Covid 19?

The UAE economy was performing fairly each year until its growth was interrupted by the Coronavirus disease. As widely reported, a survey conducted by the Dubai Chamber of Commerce, COVID-19 will lead to the closure of almost 70% of the UAE-based businesses. However, despite all odds, UAE’s economy is amongst the least affected by Covid 19 compared to the world’s biggest economies such as the U.S.A, U.K, E.U., and the BRICS nations, a special thanks to the timely and effective measures taken by the government to soften the blow of the pandemic on the economy as well as on human lives.

The UAE economy is expected to resume recovery to pre-COVID-19 levels in 2021. This is indeed great news for the region’s property management sector as it will be hugely benefited from the trend of robust economic growth which is expected to continue until 2024 as per the evaluation of IMF and HSBC.

Owner’s Association: Meaning, Role, & Significance

As per the Jointly Owned Property Law, or the Strata Law, “Owner’s Association is a non-profit establishment and a separate legal entity which consists of all the owners of the units in a jointly owned property,”.

The Owner’s Association is primarily responsible for the management, maintenance, and operation of common areas within the jointly owned property with each unit owner being a member of the OA. All individual owners in the community become members of the OA as soon as they purchase a flat or house in that particular building or community and start making the payment towards the annual service charge for the maintenance and upkeep of the common areas of the building or community. 

The Owner Associations are governed by a board of elected unit owners and headed by an OA manager, who may be an owner acting in a voluntary capacity. There is also a rising culture of appointing OA managers from a specialist company licensed and registered by RERA.

The owner’s association plays a decisive role in the enforcement of statutory regulations, the formation of the rules & regulations, and ensuring the highest standards of security of the building. OAs also devotes a considerable period of time towards strategic financial management with a core objective to improve the life cycle of the building.

The Adverse Impact of Covid 19 on UAE Economy: 

According to Oxford Economics, the United Arab Emirates could lose 900,000 jobs which are eye-watering for a country of 9.6 million. The region is also likely to witness 10% of its residents uproot. This havoc will minimize the number of tenants in the apartments and will also hamper the demand for new properties. Within the two months of the spread of the pandemic in UAE, more than 150,000 Indian nationals and 40,000 Pakistani nationals left or registered to leave the UAE by early May 2020. Around one million expats are expected to leave UAE in the next 4-6 months. This is indeed very bad news for the UAE’s real estate and property management sector.

The UAE property market was in a bad shape before the spread of the global pandemic. Coronavirus further added to the miseries for the sector and aggravated the situation. Within the first three months of the spread of the virus, the residential property prices fell by 30% due to weak demand.

Top Challenges Ahead of OA Firms:

Covid 19 has severely hit the financial capacity of the owners association firms. There has been a huge decline in the rental rates of the properties due to the slow demand and migration of tenants from the buildings. This has adversely impacted the budget of the property to be spent on the maintenance of the building resulting in inefficient building operations, higher utility costs, and a surge in energy consumption. Another daunting challenge for the owner’s association firms to address is the collection of service charges. Due to Covid 19, a list of affluent tenants moved outside the UAE to much safer places which reported almost negligible cases of Covid 19. These tenants were not aware of their commitment to the association. The UAE government is yet to indisputably enforce legislation on owners’ service charge obligations.

Growth Drivers:

The key growth drivers for the UAE’s Owners association sector will be the continued financial stimulus from the government, easing of the lockdown, and the upcoming Expo in 2021, etc. The UAE  government has laid major emphasis on curbing the growth of the virus and normalizing the economy which has worked wonders for the property management and the OA sector.  Dubai was recently awarded a “Safe Travel Certification” from the World Travel and Tourism Council, while the UAE ranks third in Covid-19 testing per one million of the population. These factors will have a favorable impact on the occupancy rates at the properties which will positively impact the business of OA firms.

How Can OA Firms Overcome the Effects of Covid 19?

Owner’s association firms must draft a well-thought emergency response and a business continuity plan to address tenants’ health incidents. Following the process can provide a solid foundation for a sustainable response program. 

Owner’s association firms must conduct a risk assessment and based on the results should decide whether to expand its current plan to address threats to tenants’ health. They must implement guidance released by the public health officials, counsel, and industry resources to make changes and must circulate the emergency plan with staff and tenants.

To attract the tenants in these difficult times, OA firms must keep service charges lower. Although lesser service charges will create a revenue deficit, OA firms will earn a fair share from the increased occupancy rate.

OA firms should hold training sessions to educate their managers, tenants, and board members on the industry procedures and government laws on Covid 19 to make each party involved in their rights and obligations. This will ensure clear communication among the industry stakeholders and will also have a favorable impact on tenancy rates. Owners Association firms must circulate their plans to combat Covid 19 with the tenants and key staff members. They can also consider hosting a teleconference to explain their plan and implement it. 

It is also of paramount importance for the OA firms to maintain clear and transparent communication with the tenants on the spread of the virus, maintaining the data of the number of tenants falling victim to it, and releasing advisory on all tenants who are diagnosed with Covid 19 to ensure other tenants maintain distance from them which is very important to curb the growth of the virus.

Maintaining sufficient funds is another key aspect OA firms must focus on. They must maintain robust capital reserve funds to deal with any fund crisis situation. Furthermore, it will be wise to go for insurance policies to protect their assets and to have the right cover by professionals.

UAE Resumes Trade Relations with Qatar. What does it mean for the Real-Estate Sector?

Ending its three-and-a-half-year split, Qatar is finally back into the GCC family. The restoration of relations will attract invaluable investments from affluent Qatari investors into the UAE. This will have a significantly positive impact on the economy and is also much-needed for the recovery of UAEs retail and hotel sectors. 

UAE’s Stand on the Matter:

The UAE joined Saudi Arabia, Bahrain, and Egypt on Jan 12, 2021, in signing an accord with Qatar during a summit of Gulf Cooperation Council (GCC) leaders. The UAE government has already announced to reopen its borders and airspace with Qatar after a long conflict and has already commenced the commerce and travel with Qatar.

The trigger behind this move was Saudi Arabia announcing to settle its long conflict with Qatar and restore diplomatic ties and its allies will follow suit during the annual Gulf Arab summit which took place on January 05, 2021, in Saudi Arabia’s desert site of Al-Ula.

Why is Qatar So Important for the UAE Real-estate Sector?

According to the World Bank, Qatar’s economy is expected to grow 3% in 2021 and is amongst the fastest growing economies in GCC nations. Qatar is the richest country in the world in terms of per capita income. The country is expected to attract billions of dollars of investments as it is slated to host the FIFA World Cup in 2022. Qatar will be investing a major part of these investments in the real estate, tourism, and hospitality sector across the GCC nations which will also spur the growth of the UAE economy.

Qatar has been a second home for UAE businesses. They have a long tradition of operating in Qatar as the country offers a significant cost-advantage and access to the consumer base of 2.8 million. 

Here are the top four reasons that make Qatar a Key to Success for UAE Real-estate:

  1. Investments: Prior to the severing of ties in 2016, Qatari investors were amongst the top 10 most active investors in Dubai’s residential market. As per the figures released by Dubai Land Department (DLD), real estate transactions from 2016 exceeded AED 91 billion from 55,928 investors. This included 1,006 investors from Qatar purchasing a property in the emirate. 
  1. Tourism: Qataris have one of the highest spending-power in the world and an affinity towards luxury properties which is expected to underpin stronger demand levels in this market segment. An exponential surge in the inbound tourism in Dubai from corporate and leisure travel from Qatar will have a favorable impact on Dubai’s commercial as well as the residential property market.
  1. Trade: Qatar has huge trade with the UAE. The total trade with the UAE stood at $3.5 billion just before the year the embargo was imposed in 2017.  
  1. Economy: The restoration of relations will also have a profound impact on the UAEs economy. The reopening of Emirati airspace to Qatar ahead of the 2022 FIFA World Cup, will attract over a million soccer fans from across the globe which will bring considerable revenue for UAE airline companies and will be a big boost for the real-estate sector as well as for the economy. 

The resolution will also enhance the prospects of optimum utilization of socio-economic benefits of international air connectivity.

The Impact on the UAE Real-estate Sector:  

The real estate sector in the UAE will be the biggest beneficiary from the end of a diplomatic crisis with Qatar as the country is amongst the top investors. It will foster a free flow of capital in the UAEs regional marketplaces.

The industry experts believe that the UAE real estate and infrastructure sector will gain a lot from the deal as Qatar. UAE is expected to witness an exponential surge in its investment as high-spending Qatari tourists which were previously key consumers of UAEs luxury goods and hospitality services are getting ready to spend their fortunes on experiencing UAE’s lifestyle. Furthermore, the move will also open doors for UAE companies to operate in Qatar’s rich market which has one of the highest consumer spendings in the world. The deal will also work wonders for Qatar as it will leverage UAE’s geostrategic to gain wider access to the markets. 

The experts also believe that if things become normal between the two nations, there can be an incremental trade growth of 10% which is indeed a ‘glad tidings’ for the UAE real-estate sector.