Once said by HH Sheikh Mohammed bin Rashid Al Maktoum – ‘if the vision is clear then the objectives can be easily achieved’. This quote indeed stands tall in the context of Dubai. The vision of HH Sheikh Mohammed bin Rashid Al Maktoum to turn Dubai into the world’s best city has led to the accomplishments of huge objectives like – building the first 7 Star hotel – Burj Al Arab, the first man-made Island – Palm Jumeirah, the world’s tallest tower – Burj Khalifa, and the first futuristic museum in the world – ‘The Museum of the Future’. 

Another such vision of HH Sheikh Mohammed which is going to transform Dubai forever is – ‘The Dubai Economic Agenda’ or ‘D33’.

On January 04, 2023, The Dubai Economic Agenda ‘D33’ was launched by HH Sheikh Mohammed bin Rashid Al Maktoum on the occasion of his 17th Accession Day anniversary. D33 is set to propel the long-term growth of all businesses across all sectors and will turn Dubai into the world’s leading destination for global investors and businesses. 

Dubai Economic Agenda or ‘D33’

Dubai Economic Agenda or ‘D33’ is a one-of-its-kind project which focuses heavily on partnerships, investment, technology and digitization, and people empowerment to turn Dubai into a global financial hub. D33 aims to double the size of Dubai’s economy over the next ten years (i.e. between 2023-2033) and consolidate its position among the top three global cities.

Key Objectives

D33 strives to revolutionize every sector in the next decade. It aims to increase Dubai’s foreign trade, Foreign Direct Investment (FDIs), government spending, private sector investments, the value of domestic demand for goods & services, and an annual contribution from digital transformation projects. D33 aims to build Dubai as a digital hub and aims to generate an annual contribution of AED 100 billion from digital transformation projects to Dubai’s economy.

Over the next 10 years (2023-33) Dubai Economic Agenda (D33) aims to Increase Foreign trade from AED 14.2 trillion in the past decade to AED 25.6 trillion for goods and services in the next decade,  Increase FDI from an average of AED 32 billion annually to an average of AED 60 billion annually to reach a total of AED 650 billion by 2033 and increase Government expenditures from AED 512 billion to AED 700 billion. D33 also aims to increase the Private sector investments from AED 790 billion in the past decade to AED 1 trillion in the next decade, and the Value of domestic demand for goods and services from AED 2.2 trillion to AED 3 trillion in the next decade.

D33: Roadmap

The key factor in the success story of Dubai as a leading global destination for businesses and investors is its impeccable ability to design infrastructure and industry development projects to accelerate the pace of its economic growth several-folds. D33 is one of those projects. It will turbocharge Dubai’s holistic development and will empower the emirate in emerging as a global financial hub. D33 includes 100 transformational projects which encompass every major sector. 

The first package of transformational projects for the next decade focussed on doubling the size of Dubai’s foreign trade and adding 400 cities to Dubai’s foreign trade map. It also aims to launch Dubai’s plan for green and sustainable manufacturing. 

To boost industrial development and the job market, D33 has plans to launch a scale-up programme for 30 companies to become global unicorns in new economic sectors and integrate 65,000 young Emiratis into the job market. It also emphasizes on launching the Dubai Traders project to empower the new generation of traders in key sectors.  To accelerate the pace of technological innovation, D33 will focus on launching ‘Sandbox Dubai’ to allow the testing and commercialization of new technologies and make Dubai a major innovation hub.  D33 also emphasizes on developing an SME scale-up programme by identifying 400 high-potential companies and supporting their capacity building to enable them to grow globally.

What does D33 Mean for the Real Estate Sector?

Dubai Economic Agenda (D33) will prove to be a boon for the real estate sector and accelerate its performance several-folds in the next 10 years. Under the plan, the Dubai government plans to invest significantly to develop economic infrastructure to drive trade and investments. This will create more demand for real estate. 

Since the announcement of D33, the real estate sales transactions recorded over a 128.5% YoY increase in January 2023. The latest data shared by the Property Finder, on Dubai’s real estate sector has revealed that in January 2023, the real estate sales transactions crossed 9,800 compared to 5,739 in January 2022. The value of transactions witnessed an outstanding increase, recording over Dhs28bn, an increase beyond 178% compared to the same month last year.

Here are the top ways D33 will positively impact the real estate sector

1. Increased Demand for Office Space

D33 aims to invest significantly in Dubai’s infrastructure which will attract several new corporations from across the globe to start their operations in Dubai. This will create more demand for industrial and office space which is good news for the commercial real estate sector. 

2. Surge in the Demand for Premium Properties

D33 emphasizes attracting foreign investments in the field of technology, entrepreneurship, and innovation. This will lead to an influx of High-net worth Individuals (HNWIs) moving to Dubai for business. According to the Henley Private Wealth Migration Dashboard, the UAE was at the top of the world in attracting High-Net-Worth Individuals (HNWIs) in 2022. The increase in the migration of millionaires and billionaires to Dubai will create more demand for premium properties like – villas or luxury apartments which will drive the sales of premium properties.  

3. More Innovative Projects

 D33’s agenda lays special emphasis on investing in innovative technologies. This will lead to the development of revolutionary and state-of-the-art real estate projects in the coming years such as: smart homes, green buildings, and sustainable communities which will make the real estate sector more attractive for both local and global investors. Innovative projects will also have a profound impact on the resident experience and their quality of life which will lead to higher satisfaction rates and occupancy and more revenues for the property management firms.

4. Foster Competition

More focus on developing innovative real estate will promote competition amongst real estate developers to come up with more unique projects which will make the sector more competitive than ever.   

 D33 agenda will also lead to the development of more mixed residential and commercial projects which most closely matches the requirements of the buyers. D33 also emphasizes on Small and Medium Enterprises scale-up programme by identifying 400 high-potential companies, supporting their capacity building, and supporting them to grow globally. This will create more demand for small yet modern office spaces to attract companies and individuals looking for new opportunities in Dubai based on the (D33) vision. More demand for office space will have a consequential impact on the revenues and business expansion of real estate developers.

With an aim to transform Dubai into a global digital hub, in July 2022 Dubai Land Department (DLD) joined hands with one of the top banks in UAE, Emirates NBD  to automate the process of rental cheque payments and digitize the rent collection process using the Central Bank of the UAE’s Direct Debit System (UAEDDS). This year, Dubai Land Department has gone the extra mile to foster and expand digitization in the real estate sector with its new ‘Ejari update’ feature.

In January 2023, Dubai Land Department announced rent payments via. Direct debit through its innovative new Ejari update which features the Noqodi Ejari Direct Debit Service (DDS). The Direct Debit System (UAEDDS) by the Central Bank of the UAE (CBUAE) will facilitate tenants in paying their rent automatically, via direct debit. 

DLD’s Noqodi Ejari

Dubai Land Department will now fully integrate the Ejari with the Noqodi Direct Debit system (UAEDDS). According to Noqodi Ejari DDS Manual released by the Dubai Land Department, the Direct Debit System (UAEDDS) by the Central Bank of the UAE (CBUAE) will provide the residents of Dubai with an automated payment method that will facilitate recurrent payments from their bank accounts. 

The new system will allow tenants to manage the schedule of their rent payments during the renewal and contract creation process. The Noqodi Ejari DDS Manual will guide the users on the steps they need to follow to set up a DDS in Ejari and Noqodi.

The Need to Digitize Rent Collection Process  

Historically,  rent payments have been dominated by cheques for decades with many residential communities not offering the option for direct debit. This has resulted in payment delays for the landlords and management companies and has adversely impacted their abilities to conduct renovation or development work. But today, a vast majority of rent payments are done digitally. Thanks to the supportive policies introduced by the UAE Government to turn the nation into one of the world’s biggest cashless economies. According to the article titled – ‘Cashless Countries’ by the UK’s financial firm – Money.co.uk, the UAE is ranked at 8^th Spot in the World in terms of a cashless economy with 83% of the population owning a debit card/bank account.

A vast list of measures and distinctive policies introduced by the Dubai Land Department in the last few years has accelerated the pace of digital payments. Today, every real estate stakeholder (i.e. Landlords, Tenants, Management companies, etc.) prefers to accept and receive rent payments digitally. Another factor which makes direct debit payments favourable for tenants is it is always easy to curate the payment terms agreed upon in the contract. 

The Impact of Rent Payments by Direct Debit on Property Management firms 

Dubai Land Department’s decision to encourage rent collection by direct debit has come as a blessing for property management firms. It is a win-win situation for tenants and property management firms as it will make the process faster and introduce operational efficiency to the process.  

Here are the top 5 ways Rent Payments via. Direct debit Boosts the Revenues of the Property Management firms

1. Reduces Late Payments

Paying rent via. Direct debit minimizes the possibility of late payments. It ensures timely and uninterrupted cash flows for the property management firms which increases their abilities to spend on the development & welfare of the community as well as the residents. Under the Direct debit process, once the tenant authorizes the rent payment, Property management firms receive it without going through any hassles.  This saves time & money spent by the PM firms in chasing the payments as well as from the stress of sending threatening eviction letters. 

Landlords and property management firms collecting rents through post-dated cheques have to rely on traditional and manual payment processes which are very time-consuming and difficult to reconcile. It requires them to manage cheques from a large portfolio of communities and deposit them in a bank account. Furthermore, it also takes time for cheques to clear which delays the payments. PM firms also have to spend time tracking income payments on the CRM portal and maintaining the records and reconciling them which is both time-consuming and prone to manual errors. Rent collection by direct debit overcomes these hurdles by facilitating easy reconciliation digitally and tracking any missing rent payments.

2. Minimizes Administration Cost 

Managing cheque payments involves huge administrative costs. Cheque payments require managing a lot of paperwork, reconciliation, hiring more administrative staff, dealing with the cheque bounces, and managing post-dated cheques which are both time-consuming and costly-affair for property management firms. On the contrary, direct debit payments automate the entire process of rent collection. Once the tenant sets a date, rental payments are taken automatically on the specified date each month. This prevents property management firms from investing huge money in collecting rents and maintaining tons of paperwork.

3. Overcomes Manual Errors

Cheque payments are also subjected to human errors. On several occasions, cheques used to make payments get bounced or dishonored by the banks due to human errors, such as – insufficient balance in the bank account, signature mismatch, discrepancy in dates, overwriting, or a cheque being damaged. This results in payments getting canceled and tenants incurring late payment charges despite making their payments on time. Delays in payments also adversely impact the operations of property management firms. Rent payments by direct debit overcome all these issues as bank payment portals inform tenants about insufficient balances or incorrect bank details in advance. This minimizes the possibility of bounced payments and reduces delays for homeowners in receiving timely payments.

4. Maximize the Occupancy Rate

With rising competition and several quality residential developments being added to the industry every month, flexibility is the only key to success for landlords. The more flexible landlords will be with rent and rent payments the wider the choice of tenants will be interested in renting their property. This creates an urge for the landlords to come up with more flexible payment options to attract tenants and one such option is – collecting the rent via. Direct debit.

Collecting rents via. Monthly direct debit from the tenants instead of a series of posted cheques will make the community more attractive for the tenants, especially for those who are finding it difficult to pay a large sum upfront for the initial rental cheque payment. It will also provide tenants with the flexibility to make rent payments from anywhere when they are outside the country and prevents them from any penalties related to late payments. 

Rent payment by Direct debit also assists property management firms in the swift collection of rent and ensures timely payments and saves them from the hassles involved in cheque payments. Prioritizing the financial needs of the tenants will also allow landlords and management firms in building a customer-centric image and gaining a competitive edge in the industry through a positioning strategy.

5. Secure, Reliable, and Flexible

Rent payments by Direct debit are highly secured as they place on highly secured payment networks established by recognized banks. Rents are deducted as per the instructions specified in the rental agreement. Direct debit payments also offer flexibility to the tenants and allow them to set up their rent payments in line with their rental agreement. This has a profound impact on resident satisfaction and attracts new tenants to the community which results in better occupancy rates and more revenues for the property management firms. This additional revenue is further invested in the resident welfare programs which further improves their experience of living in the community. Thus, rent collection by Direct debit is a win-win situation for both residents and the management firms.

Dubai is well-known for its world-class skyscrapers. Its epic growth in the last two decades has drawn the attention of the biggest global investors and made it the most preferred destination to buy a home or start a business. A city which was known for its iconic deserts till the 90s is today known for its spectacular skyscrapers. Without a shadow of a doubt, Dubai has emerged as an epitome for global city planners to look forward to. 

According to an article titled – ‘The 5 Tallest Cities in the World’ by The World Atlas, Dubai is at the 2^nd spot in the list of global cities with the highest number of skyscrapers with 107 skyscrapers over 200 m tall. In terms of the total number of skyscrapers, Dubai has surpassed New York, Hong Kong, Shanghai, and London to emerge as one of the fastest-growing cities in the world. 

A vast amount of credit for this success of Dubai goes to Dubai Land Department (DLD) and its one-of-its-kind and revolutionary leader – His Excellency (HE) Sultan Butti bin Mejren – Director General of Dubai Land Department. Under his visionary & outstanding leadership, the Dubai land department has launched several initiatives like – DubaiRest, Electronic No Objection Certificate (e-NOC) system, the Center for Sustainable Cities, Well-being Certificate, publishing transactional data, digitizing the rent collection process, and the Green List to name a few which has propelled the growth of the real estate sector. These initiatives launched by the Dubai land department have turned Dubai’s real estate sector into the most attractive destination for global investors in terms of quality, cost, and ROI/rental yield. 

Fostering Transparency in Real estate Operations to Drive Investments

The article titled – ‘6 Challenges of Real Estate Investment Overseas’ by Nomad Capitalist some of the key challenges faced by real estate investors across the globe includes – legal challenges, govt. regulations, and technological challenges. Dubai Land Department has always been a frontrunner in overcoming these above challenges by introducing favourable policies to build a conducive environment for real estate investors. 

Dubai Land Department, through its regulatory arm Real Estate Regulatory Authority (RERA), has an advanced e-system called Mollak, which means Owners in Arabic. Mollak regulates jointly-owned properties, and service charges and monitors the payment of service charges in jointly-owned properties in Dubai. It is an online service system that ensures transparency for joint property ownership in real estate. Mollak facilitates Unit owners to pay service charges directly into this portal to avoid any chances of impending conflicts or inconvenience. The primary aim of Mollak is to create transparency in owners’ associations, enable registration of maintenance companies and maintain track of their escrow accounts and service charges.

Dubai Land Department has played an instrumental role in enhancing the real estate investment environment through supportive regulations, developing a digital ecosystem, consolidating various sources of data through partnerships, and raising the capabilities of human resources. One such initiative is Strategic Plan 2026.  

Strategic Plan 2026 by Dubai Land department

In January 2023, DLD launched Strategic Plan 2026 – a new strategic plan and vision which outlines the roadmap for establishing Dubai as one of the world’s best real estate markets through effective governance, innovation, and technology.  According to DLD, the key vision is to strengthen global leadership in real estate investments and become a world leader in real estate investments. This great vision will be accomplished by enabling the real estate sector with seamless real estate services, effective legislation, and integrated data through partnerships, leading digital infrastructure, and empowered human capital. 

Strategic Plan 2026 has five main pillars according to DLD’s Press release which are as follows –

• The first is a pioneering real estate model, by enhancing the sector’s readiness and sustainability, and ensuring effective governance of the real estate sector. 
• The second pillar is being a real estate innovation incubator by fostering a globally attractive real estate sector and harnessing technology to enable real estate solutions development. 
• The third pillar is a data-driven sector, maximizing the added value of sector data and raising awareness, trust, and transparency in the real estate sector. 
• The fourth pillar is Agile DLD, to cultivate a flourishing digital ecosystem, enhance DLD’s operations and improve corporate governance efficiency, and foster partnerships with public and private sectors. 
• The fifth pillar is Exceptional Journeys 2.0, through which the focus is on shifting to an employee-first culture, refreshing DLD’s identity and enhancing its position, and moving to a proactive and ‘human’-focused approach.

Initiatives & KPIs

DLD has identified and classified the strategic initiatives based on the ease of application and priority matrix to enable team members in working towards the implementation in the best possible way, in cooperation with various partners and customers, which constitutes an incentive and support for the transformation and transition of DLD from the current situation to the future situation. 

The initiatives are distributed in line with the five pillars to support the strategic plan and provide sustainable and forward-looking solutions to effectively address the opportunities and challenges that these pillars include. 

How DLD will Implement the Strategic Plan 2026?

Strategic Plan 2026 will be implemented in three stages. These are as follows –

• Quick-gain initiatives: launching quick-gain initiatives to ensure that DLD adapts to the proposed changes
• Transformation: empowering the real estate sector by providing all necessary support to implement smooth transformation
• Sustainable Impact: achieving sustainable impact by expanding the scope of influence to reach a global real estate system

Impact of Strategic Plan 2026 on the Real estate Sector

Strategic Plan 2026 emphasizes implementing the latest technologies to develop new real estate solutions and create a data-driven sector to drive investments. It aims to make to improve the readiness, governance, sustainability, and innovation of the real estate sector to make it more competitive on a global scale. 

Strategic Plan 2026 is designed based on 4 fundamental principles – 

1.) Sustainable Impact by directing DLD’s efforts towards achieving evolution and sustainable development in the real estate sector.

2.) Local adaptation by adopting global practices and adapting them to the unique features and needs of the real estate market in Dubai

3.) Global leadership by developing a plan to position Dubai as a role model in the real estate sector

4.) Co-operation & harmonisation by adopting a participatory approach that includes all stakeholders and those concerned with DLD’s plan

Strategic Plan 2026 strives to develop a digital ecosystem to make real estate operations more transparent and improve the efficiency of its corporate governance. This will make it easier for investors to invest in Dubai’s property market which will drive real estate sales and transactions. 

Strategic Plan 2026 will also lead Dubai’s real estate sector towards sustainability and will ensure better results and output. This will have a favourable impact on real estate as well as Dubai’s economic growth & gross domestic product (GDP) and will also support the development and objectives of the related sectors.

The last few years have been challenging for Property management (PM) firms as they had to navigate through the complexities which arose due to the Covid-19 pandemic, rising inflation, climate change, regulations, and increasing energy prices. The sector has successfully overcome all these hurdles through effective planning, ensuring timely measures to safeguard the residents, focussing on energy-efficiency practices to reduce operation costs, implementation of digital technologies to offer faster & improved services to the residents, and adopting environmental-friendly practices to combat issues arising due to climate change.

2023 has come up with all new priorities for them. This year we are expected to witness an increased focus of the property management firm on delivering more value to the landlords and residents and coming up with new initiatives to boost resident satisfaction and safety to stay the frontrunner in the competition.  

Let’s find out what we perceive as the Top 5 trends to watch out for in 2023 in the Property Management sector –

1.  ESG

Sustainability has become a key agenda for the UAE ahead of the 28th session of the Conference of the Parties (COP 28) Summit in the UAE. HH President Sheikh Mohamed bin Zayed Al Nahyan has announced that 2023 will be the ‘Year of Sustainability’ and has emphasized the UAE’s commitment to support innovation in the field of sustainability. There will be an increased focus of the PM firms on ESG and sustainability to minimize the impact of building operations on the environment. 

“ESG” is an acronym used for “Environmental, Social and Governance”. It is a framework against which the sustainability and social responsibility of companies are measured. Due to climate change, ESG has become an important business consideration across the globe. The report titled – ‘What ESG investing means for MENA’s real estate’ by Cityscape Intelligence reveals that a vast number of studies have linked companies’ ESG performances to long-term profitability & financial resilience. ESG investing has emerged as a lucrative asset class for portfolios in the MENA region. There has been a surge in the number of real estate stakeholders who are prioritizing ESG standards like never before. ESG will be at the pinnacle in the priority list of property management firms this year. 

 Here is what ESG initiatives look like in 2023 in the Property Management sector-

a.) Environment

The property management sector will adopt and embrace environment-friendly and energy-efficient practices to minimize the adverse impact of their operations on the environment. They will achieve this goal by focusing on two major aspects.  

1.) Improving Energy efficiency

Improving energy efficiency significantly minimizes carbon emissions and has a profound impact on reducing the energy cost as well as the overall operational cost of the community. 

To improve energy efficiency, property management firms will emphasize – installing 5 Star energy-efficient equipments and LED Lights & relay switches to improve energy efficiency and performance, installing more solar panels to meet most of the building’s requirements through solar energy, deploying Building Automation Systems (BAS) to keep a tab on energy consumption, creating awareness among the residents about best ways to save energy, leveraging technology to improve air quality, minimize carbon footprints, promoting biodiversity, building more greenhouses to promote greenery and reduce carbon emissions, and preventing natural resource depletion.

 2.) Improving their Waste Management Process

Property Management firms will focus on improving their waste management process to reduce expenses for disposal and minimize the effect of waste on the health of the residents and environment. 

Some of the ways PM firms will adopt to reduce waste production includes – building advanced recycling and waste management facilities, working towards a zero waste approach by ensuring the reuse of recyclable waste, deploying technology to track waste collection and reduction, utilizing reusable waste items on-site, composing the organic waste, and encouraging direct community member engagement and accountability. 

b.) Social

As a part of the Social aspect, property management will be working towards launching more wellness and mental health programs for the residents, hosting community events & engagement programs, strengthening data protection and security to maintain the privacy of resident’s personal information, and working towards maximizing the impact of their initiatives on the local communities in which they operate and serve.

c.) Governance

Property management firms will be strengthening their governance by designing policies, and standards which support corporate governance practices and principles and promote ethical behavior, and compliance. They will achieve this by launching robust compliance programs, promoting diversity, and inclusion, providing necessary training to the employees and service providers on compliance and governance, engaging with vendors/suppliers based on their recognized ESG standards, implementing AI-powered reporting platforms to build greater transparency for the stakeholders, leveraging technology to accurately report the residents’ issue, conducting a timely assessment of the risks arising from the climate change, prioritizing sustainable practices in the operations, and launching training programs to build a sustainable development mindset.

2. Increased Usage of Technology to Offer a ‘Personalized’ Experience  

Creating an ‘Awe-inspiring’ resident experience will be the top priority of property management firms. A single instance of unit turnover costs heavily to the PM firms with more efforts required to boost the occupancy rate. As the general rule of customer acquisition suggests that acquiring a new customer can cost 5X times more to a business than retaining an existing customer. Resident retention will be the primary focus of property management firms. To achieve this, they will be focussing on automation and deploying advanced technologies to overcome the challenges faced by the residents. PM firms will also strive to offer more personalized experiences to make their managed communities a preferred choice for the residents.

Here are some of the ways PM firms will boost the residents’ experience –

a.) Proactive Maintainance: Studies conducted across the globe have emphasized the need to conduct proactive maintenance of buildings. It helps to create mechanisms to prevent and control the deterioration of the building and implement maintenance actions that are both reliable and economic. Proactive maintenance significantly minimizes the number of maintenance requests and ultimately leads to an increase in resident satisfaction. 

c.) Streamlining the Lease Renewal Process: There will be an increased focus on streamlining the lease management process by sending renewal notices in advance and offering incentives to those renewing early.  This will encourage renters to lock in rates with a longer lease term with property upgrades and improvements at the time of the lease renewal. 

Streamlining the lease management process will reinstate the buildings and units which are now aging and enable the sector in getting new supplies.

d.) Building a more Connected Environment: Property management firms will be investing more in building a more connected environment by offering faster Wi-Fi and installing IoT devices. PM firms will also work towards modernizing other touchpoints within the community such as – access control and package delivery.

To learn more about how Kaizen AMS leverages technology to bring personalization in its communication with its 40,000+ residents in its 130+ managed communities, read our case study-5 Ways to Achieve Resident Satisfaction with Personalization through Technology 

 3. Working closely with the Family Offices 

Family offices are rising at an exponential pace in Dubai growing because there is a demand for a corporate-like structure from wealthy Emirati families to manage their growing real estate, wealth, and assets. Dubai has a connection with Family offices for 90 years since the discovery of oil in the region. According to an article titled – ‘How to revitalise traditional family businesses in the Gulf’ by The Arabian Business, family offices account for more than 90% of the private sector. 

Favourable decisions taken by the UAE government have made Dubai an epicenter for global elites. According to the Henley Private Wealth Migration Dashboard, the UAE was at the pinnacle in the world in terms of attracting High-Net-Worth Individuals (HNWIs) in 2022 and projected net inflows of 4,000 HNWIs. To cater to this substantial increase in HNWIs, Dubai International Financial Centre’s Authority Board approved the opening of a Global Family Business and Private Wealth Centre in the UAE in 2022 in a bid to welcome more Family Offices in the nation. This step has augmented the demand for Family offices and has encouraged several family offices from across the globe to open their headquarters in Dubai as many of these HNWIs moving to Dubai will be requiring their services to manage their real estate portfolios. 

Family offices will be requiring the services of property management firms to ensure effective management of the properties. In 2023, we will witness PM firms working closely with the family offices to meet the demand and ensure the utmost client satisfaction.

To learn more about Family offices, read our blog – ‘7 Reasons for Rising Allocation of Family Offices in Real-Estate’

4. Investing in Research to Offer Excellent Customer Delivery

A vast number of property management firms will focus on increasing their spending on research & analysis to understand the dynamic requirements and expectations of the residents. They will invest in setting up research wings or centres to capture valuable insights into the expectations & preferences of the residents. PM firms will be regularly conducting online surveys and personal touchpoints to gain first-hand insights into resident behavior. Post that, Property managers and their teams will work on analyzing the best ways to implement residents’ suggestions captured through online surveys in the community to improve the living experience. Keeping an eye on the dynamic expectations of the residents will allow property management firms in taking timely measures to minimize tenant turnover and boost occupancy and resident satisfaction. 

5. Increased Focus on Building Cybersecurity

With an increasing clientele and resident base, property management firms will be increasing their reliance on digital technologies to manage personal & confidential information. However, increased dependence on technology will also create an urge for property management firms to build a robust Cybersecurity network to prevent any unwanted & unforeseen cyber-attacks or security breaches. This year, Property management firms will be investing more in strengthening their cybersecurity. 

Some of the ways to build effective Cybersecurity are as follows –

• Conducting Vulnerability assessments to evaluate the capability of their current Cybersecurity network to identify the vulnerability of their technology to cyber threats and ransom wares. 

• Organizing Annual Staff Awareness Training to prevent internal error, privilege misuse, cyberattack, phishing, ransomware, and data loss as a result of employees not understanding their information security obligations.

• Performing Penetration testing to deploy the white hat and ethical hacking techniques to uncover holes in your existing Cybersecurity solution during a penetration test.

• Increasing IT budget to boost cyber security. Technology teams will work towards analyzing possible security threats, conducting timely assessments of their current security level, timely updating the systems, limiting access to the information to only those employees who need it to do their job, setting goals and outlining tactics, creating back up files, developing a robust security framework, and establishing plans for monitoring schedules, detections, and scientific ways to deal with data breaches or theft.

• Regularly reviewing Data-handling policies and procedures to ensure employees, customers, residents, and all business stakeholders understand their security obligations.

To learn more about the steps Kaizen AMS takes to safeguard the personal information of its stakeholders, read our case study – ‘Testing Kaizen’s Technology Infrastructure to evaluate its Vulnerability to Data Breach’.

Continuing its monumental growth trajectory, the real estate sector in Dubai witnessed transactions crossing a milestone figure of half a trillion dirhams in 2022 – for the first time ever. According to the Government of Dubai Media Office, the real estate sector witnessed transactions worth a record AED 528 billion in 2022 which is a 76.5% increase from 2021. A total of 122,658 real estate transactions were registered in 2022 which was an increase of 44.7% from 2021. 

In December 2022 alone, over 8000 transactions took place which was a 63% increase from the previous year. Off-plan property sales witnessed an increase of 92.5% while secondary sales saw a 32.4% rise.

Growing Interest of Investors in Buying Property

High ROI and rental value, long-term visa, Expo 2020, District 2020, Masterplan 2040, FIFA World Cup in Qatar, increase in HNW Investors, and other favourable steps have made Dubai’s real estate more attractive than ever for investors. As a result, the sector witnessed 80,216 investors registering 115,183 new real estate investments valued at AED 264.15 billion in 2022. There was an annual growth of 59.5% in volume and 78.4% in value compared to 2021. The number of investors in 2022 also grew 53% compared to the previous year, according to the data released by the Government of Dubai Media Office.

Impact on the Property Prices 

The colossal rise in the demand to buy property in Dubai has significantly outpaced the supply. This has resulted in a surge in property prices as well as rents. According to the latest ‘Dubai Residential Market Snapshot for January 2023’ report by CBRE, during the year until December 2022, the average property prices rose by 9.5%. The prices for Villas increased by 12.8% while Apartment prices rose by 9%. As of December 2022, the average prices for apartments were AED 1,168 per square foot while average prices for villas reached AED 1,385 per square foot. 

Substantial Increase in Rents and Rental Growth

According to the CBRE report, in the year to December 2022, average rents increased by 26.9%. Over this period, average rents for apartments and villas surged by 27.1% and 24.9% respectively. As of December 2022, average annual apartment rents stood at AED 95,168, and average villa rents stood at AED 282,150.

The CBRE report also finds out that the residential rental growth reached an all-time high with apartment and villa rents increasing by 27.1% and 24.9% respectively in 2022. Rising demand for premium properties has been the primary reason for the increase in rent. 

To learn more about the factors responsible for the rising demand for luxury properties in Dubai, read our whitepaper – ‘What’s driving the Demand for Luxury Properties in Dubai?’

Key Performing Areas in 2022

In the apartment segment, the top 5 areas that registered the highest sales rate per square foot include – Jumeirah (AED 2,324) Palm Jumeirah (AED  2,171), Downtown Dubai (AED 2,170), The Old Town (AED 1,750) and Dubai Hills Estate (AED 1,722). 

The average price for an apartment in Dubai in 2022 stood at AED 1,168 per sq. ft.

In the Villa Segment, the top 5 areas that registered the highest sales rate per square foot include – Palm Jumeirah (AED 3,921) Jumeirah (AED  2,270), Emirates Hills (AED 2,268), District One (AED 2,025) and Mohammed Bin Rashid City (AED 1,733).

Outlook for 2023

The outlook of the real estate sector for 2023 looks bright and promising. The increase in global investors will attract more corporations to Dubai which will create more demand for commercial as well as residential real estate and will lead to higher property prices and rents. According to Henley & Partners report titled – ‘Millionaire Migration Trends for 2022’ the UAE was at the pinnacle in attracting the highest- net worth Investors (HNWI) in 2022. This substantial surge in the number of millionaires will increase the demand for property which will result in an increase in both the prices as well as rents. 

According to Mr. Taimur Khan, Head of Research – MENA at CBRE Dubai,  “in the year ahead, we expect that both the average rates of price and rental growth will remain positive, however, we expect the rates to moderate and in certain more nascent communities with strong supply pipelines, to decline.”

Dubai’s real estate sector will reap the benefits of ‘Dubai Economic Agenda ‘D33’ – the ambitious project of HH Sheikh Mohammed Bin Rashid Al Maktoum which aims to double the size of Dubai’s economy by 2033 and increase private sector investments from AED 790 billion in the past decade to AED 1 trillion in the next decade. The ‘D33’ Agenda includes the launch of innovative projects that will help achieve HH Sheikh Mohammed’s vision to make Dubai the world’s best city to live and work in. The value of the total targets set by the Dubai Economic Agenda ‘D33’ is AED32 trillion by 2033. The Agenda will foster sustainable economic growth through innovative approaches.

Kaizen Asset Management Services is happy and proud to announce that our efforts & accomplishments across a vast range of categories have been recognized at the prestigious International Real Estate Community Management Summit (IRECMS) Awards held on the 9^th December 2022 at Address Hotel, Dubai Marina. 

IRECMS Awards recognizes UAE-based companies for their unparalleled performance in the field of Community Management, Facilities Management, Property Management, and Real Estate in general. IRECMS Dubai Awards has over 15 categories which were vetted by a Jury and Advisory Council comprising global leaders within Community Management.

Kaizen AMS won the ‘Best Property Management Company of the Year’  for the second year in a row award and was awarded Gold Award for maintaining some of the highest resident satisfaction and occupancy rates while minimizing the operational cost of the community. KAIZEN was the top choice of the jury for the Best Property Management Company of the Year for its efforts in minimizing energy consumption by 30% at its 130+ managed communities across Dubai and reducing carbon emissions by 25%. The vast amount of credit for this goes to KAIZEN’s adoption of greener technologies to protect the environment and minimize energy consumption. 

Kaizen AMS is also the winner of ‘Most Customer-Centric Company of the Year’ for the second year in a row for maintaining a 95% resident satisfaction rate across its managed communities along with a 90% occupancy rate.

Kaizen also won the award for the ‘Best Digital Transformation of the Year’  for launching a vast range of state-of-the-art digital communication platforms and real-time reporting & solutions to provide real-time responses and solutions to the maintenance & service-related queries & concerns of the 40,000+ residents staying in its managed communities. 

On the occasion, Mr. Fadi Nwilati – the CEO of Kaizen AMS said, “like every time, I would like to give the credit for our success at IRECMS  to our dedicated Kaizeners ‘employees’ who are passionate about our purpose of ‘Creating Memorable Experiences and Communities’. The key ingredients in Kaizen’s recipe for success are – 1.) our passion and robust commitment to serving the stakeholders with professionalism 2.) our ‘tech-enabled approach’ which strengths our commitment towards bringing ‘personalization’ and ‘human touch’ in our communication to ensure their utmost satisfaction and delight with our services and create those unforgettable experiences for them 3.) and our Commitment towards ‘mother nature’ which motivates us to continuously invest in deploying unconventional technologies to minimize energy consumption and carbon emission at our managed communities and support the government in its one-of-its-kind ‘Dubai Carbon Abatement Strategy 2030’ which aims to reduce Dubai’s carbon emissions by 30% by the end of 2030.’

Additionally, Kaizen AMS was also awarded Silver Award in the ‘Best Crisis Management Initiative of the Year’ for taking a vast number of initiatives for restricting the spread of the Covid-19 pandemic across its managed communities. Kaizen showed utmost agility in adapting to newer, innovative ways to continue serving the expectations of its customers, especially in the constrained times of the pandemic crisis. The firm demonstrated utmost resilience in managing survival in tough times while showing empathy for the customers’ unique needs. Kaizen came up with a vast range of virtual initiatives such as: Schanvager Hunt, and Virtual Quiz at its managed communities to keep the residents engaged during the lockdown phase which were later adopted by the honorable government of Dubai and relaunched as a campaign across the city.

Recently, KAIZEN obtained the WELL Health-Safety Rating for 90 properties in its portfolio from the International WELL Building Institute (IWBI) for maintaining for following six health and safety pillars i.e. cleaning and sanitization procedures, emergency preparedness programs, health service resources, air and water quality management, stakeholder engagement, and communication, as well as innovation.

Dubai’s real estate is on a roll. The sector has witnessed another successful quarter despite economic downturns and rising inflation levels globally. A vast amount of credit goes to the positive impact of Expo 2020, the FIFA World Cup, massive investment by the government into the infrastructure, the transformation of Expo city into a hub for businesses and residents, and the revolutionization of Expo village into a world-class & energy sustainable residential community for domestic citizens. All these factors made Dubai’s real estate sector more attractive for investors to invest in and have resulted in a colossal increase in real estate transactions in 2022. 

In the first 9 months of 2022, Dubai’s real estate has surpassed the total number of transactions recorded last year with 71,278 real estate transactions recorded. This is an 18.1% increase compared to 2021 when the real estate sector witnessed 60,347 transactions. This year so far has also been good for the luxury property sector. There has been a substantial rise in the sales of ultra-prime properties and luxury villas which were in the price range of AED 100-300 million. 

Real estate Transactions: Q3, 2022

Dubai’s property market is going through its finest days. The third quarter of 2022 has been one of the best quarters. The data from Dubai Land Department reveals that the real estate sector recorded 25,503 transactions worth AED 69.5 Billion (US $ 18.92 billion) in Q3, 2022. This was over a 17% increase in the value of transactions from Q2, 2022 with the total number of real estate transactions worth AED 59.15 billion. 

The total number of transactions in Q3, 2022 increased by 14% compared to the previous quarter i.e. from 22,504 to 25,496, and by 61% year on year. The sales of off-plan properties increased by 30.9% in Q3, 2023 compared to the previous quarter to reach 11,774. 

Surge in Property Prices in Q3, 2022

Dubai’s property market always remains lucrative for global investors due to its high ROI and several other advantages. This is one of the reasons property prices always show an upward trend. According to #Report: Dubai Real Estate Market Q3 2022 by Morgan’s International Realty, the property prices per sq. increased by 4% in Q3, 2022 compared to the previous quarter. Compared to Q3, 2021, the property prices in Q3, 2022 have increased by 16%. 

The property prices have decreased significantly compared to 2021. Villa and apartment price gains slowed to 24.6% year-on-year and 19.0% y/y respectively. 

Rise in Rents

The average rent for apartments has surpassed the average rent price for villas in Q3 on a y/y basis (22.6% y/y compared to 22.1% y/y). This is predominantly due to a substantial increase in the average rent of three-bedroom apartments which has more than doubled in Q3, 2022 compared to the second quarter. 

FIFA World Cup in Qatar in November this year will attract a vast number of visitors to Dubai which will have a favourable impact on rent prices. Both rents & prices for commercial properties will increase as the demand for business space rises substantially. 

Impact on the Secondary Market 

Secondary market (ready property) transactions were stable as compared to the previous quarter, yet 52% higher than the previous year. Primary market (off-plan) transactions increased by 31% quarter-over-quarter and 74% year-over-year due to an increase in new developments launched by the developers to meet the increased demand from high-end luxury property buyers.

Increase in the Demand for Prime & Super-prime Properties

The demand for prime properties (worth AED 10 Million) and super-prime properties (worth USD 10 Million) have increased exponentially. Transaction volumes for properties valued at AED 10 million or more increased by 9% Q-o-Q and by 34% Y-O-Y. 

Transaction volumes for super-prime properties valued at USD 10 Million (AED 36.5 million) and above registered no change in Q3, 2022 compared to Q2, 2022. However, transaction volume was 88% higher compared to the same period the previous year. 

The number of transactions for properties with a value of AED 100 million (USD 27.3 million) or more increased by 33% from the previous quarter and by 300% from the previous year.

Most Popular Areas

Business Bay, Downtown, and Damac Lagoons remained the most popular areas in terms of the highest number of transactions in Q3, 2022. Palm Jumeirah was at the pinnacle in terms of the largest value of transactions during the quarter prominently due to a surge in the demand for prime & super-prime properties. There were a total of 593 transactions, and their combined worth of AED 5.6 billion. 

Most Expensive Property Sold

The most expensive property sold in Q3, 2022 was an 8-bedroom villa named ‘Casa Del Sole mansion by Alpago Properties Sold for AED 302 million (USD 82.2 million) on Palm Jumeirah on July 05. 

Outlook for Q4, 2022

In Q4, commercial property sales will compete with residential property and their overall performance will improve. This is very evident from the data of Q3, 2022 which suggests that the transactions for office retail surged by 21% quarter over quarter and by 75% year over year. Business Bay remains the top choice of investors to buy a commercial property. 

There has been an increase in the number of new properties with over 31,000 new units added to the industry between Jan-Sep 2022. There has been an emerging trend of an increase in sales of off-plan properties combined with a pronounced slowdown in sales of existing properties. The announcement of the list of new mega projects and master communities is also great news for the real estate sector.

Due to rising inflation & interest rates in the US, the interest rates will also increase in Dubai as The Central Bank of the UAE follows the policy rates from US Federal Reserve given the dirham’s peg to the dollar. This will lead to higher costs of borrowing loans for the developers and will result in an increase in property prices in 2023 & 2024.

Global technocrats are brainstorming to come up with unconventional ideas to design the Metaverse concept which was coined by Neal Stephenson in 1992. Neil used the term Metaverse in a science-fiction novel however it took almost three decades to turn this fiction into reality. A vast amount of credit for this goes to the tech giants like Facebook and Microsoft for making the Metaverse a household name. The covid-19 pandemic has also triggered the growth of Metaverse as people avoided in-person interactions and the corporate sector and corporates embraced the remote working culture. 

Metaverse is all set to change the way residents interact and work in Dubai. There has been an upsurge in the number of residents who expect their communities to be metaverse-enabled. Responding to the resident’s demand, a vast number of real estate developers are significantly investing in the space. Damac Group is in the process of building digital cities and has joined hands with the data centre firm Edgenex, Swiss luxury jeweller – de Grisogono, and fashion house Roberto Cavalli to launch distinctive virtual homes and digital property as well as digital wearables, and jewellery. Without a shadow of a doubt, Dubai is indeed heading towards the virtual future with Metaverse.

Why is Metaverse Important for the Real estate Sector?

According to the article titled – ‘What Is a Metaverse? And Should You Be Buying In?’ by Gartner, the Metaverse refers to a collective virtual space which is created by the convergence of virtually enhanced physical and digital reality. Metaverse represents a combinatorial innovation, as it requires multiple technologies and trends to function. Contributing tech capabilities include augmented reality (AR), flexible work styles, head-mounted displays (HMDs), an AR cloud, the Internet of Things (IoT), 5G, artificial intelligence (AI), and spatial technologies. 

Metaverse is the next big thing in the real estate sector as it allows users to use avatars to represent themselves, communicate with each other and virtually build out the community. In the metaverse, digital currency is used to view and buy property using digital currency. 

The Role of Metaverse in Enhancing the Resident Experience

Dubai’s real estate sector is setting up new benchmarks in leveraging metaverse for the benefit of the residents. Metaverse has enabled residents in 3-D virtual tours to view the property they are planning to invest in from their homes. Real estate developers are tieing up with the leading property technology or proptech firms to develop hi-tech 3D visualization platforms to enhance residents’ experience and integrate their upcoming launches into this ecosystem. This will allow customers to buy, rent, and sell properties digitally. 3D visualization boosts the buyers’ experience by facilitating them in viewing a vast number of properties from the comfort of their homes and configuring the interior decoration to their liking. Later on, they can also make all the payments related to property purchase payments, utility bills, service charges, etc. digitally through Metaverse. This way, Metaverse is emerging as a one-stop solution to cater to all the requirements of the residents and is elevating overall resident satisfaction across all residential communities in the UAE. In the coming months, Metaverse will also positively impact the commercial real estate sector and will allow tenants in making payments for their rents and utility bills digitally.

 ‘Dubai Metaverse Strategy’ – a Big Push for the Real estate Sector

The UAE is blessed with visionary and committed leadership which always embraces advanced technologies to make the region frontrunner in the race of innovation & development and ‘Dubai’s Metaverse Strategy’ is just one of the best examples. 

Dubai Metaverse Strategy aims to transform Dubai into one of the world’s top 10 metaverse economies as well as a global hub for the metaverse community. The strategy aims to build on Dubai’s achievement of attracting more than 1,000 companies in the fields of blockchain and metaverse and foster innovation, enhance the metaverse’s economic contributions through R & D collaborations, and promote advanced ecosystems utilizing accelerators and incubators which facilitate and attract corporates and projects. Dubai Metaverse Strategy also aims to develop global standards in building safe and secure platforms for users and develop metaverse infrastructure and regulations to accelerate the adoption of these technologies.

Dubai Metaverse Strategy will boost the growth of Metaverse adoption in real estate and will encourage more real estate developers to invest in it. This initiative will also enhance the quality of the projects as the value will be largely dependent on the uniqueness of the project. Dubai Metaverse Strategy encourages the development of a diverse range of advanced innovative Metaverse platforms which will lead to the establishment of a variety of experience centres on virtual lands. These centres will facilitate developers in showcasing their existing and upcoming projects and products and creating promotional activities. Through metaverse, real estate developers will be able to create more awareness among the buyers about how they can leverage metaverse to enhance their experience such as: by scheduling virtual tours, online bookings, land registries, and in getting faster, improved, and 24×7 services using Chatbots. Dubai Metaverse Strategy is also a big push toward enhancing transparency in the real estate sector and ensuring the utmost security for the investment of property buyers. 

Kaizen AMS is elated to announce that yet again we have been recognized as the ‘Property Management Company of the Year’ at the prestigious Smart Built Environment Awards -2022 held on 23rd September 2022 at Ritz Carlton DIFC. With this, Kaizen has continued its long and incessant legacy of winning at Smart Built Environment Awards and yet again reflected its true commitment toward the environment and health & safety of UAE residents. Kaizen Asset Management Services (Kaizen AMS) has also been recognized across the vast gamut of other important categories.

Smart Built Environment Awards is a platform which recognizes the companies in the built environment for their efforts and practices in creating happier communities and meeting smart city and sustainability goals. The event is a knowledge-based platform, giving delegates the information they need to arrive at an informed decision on making their built assets more economical for owners and more functional for occupiers. Smart Built Environment Awards are focused on four major aspects of real estate i.e. -Property Management, Community Management, Facilities Management, and Prop Tech.  The two-day event is focused on keynote speeches, panel discussions, presentations, and workshops and covers the biggest issues and trends driving real estate development and management in the Middle East region.

Kaizen AMS was awarded as the winner of Property Management Company of the Year and Partnership Award-PropTech award category for its continuous investment in introducing world-class and ground-breaking technologies to its 130+ managed communities across Dubai to create ‘memorable experiences’ for its 40,000 + residents. Kaizen AMS has won ‘Partnership Award-PropTech’ for working alongside our one-of-its-kind technology partner, Socienta to drive the digital transformation in Dubai’s real estate sector and for tackling complex industry problems with our technology and expertise.

Speaking at the Occasion, Kaizen AMS’ Founder and CEO – Mr. Fadi Nwilati said – ‘Yet again, We Kaizeners have proved to the world that ‘people with great passion, make impossible happen’. The top 3 reasons behind our monumental success since our inception are 1.) Focus on creating memorable experiences for our stakeholders 2.) Deploying a vast range of novel property technologies to minimize the energy-consumption & operational costs 3.) Launching a series of sustainability initiatives to reduce the impact of our operations on the environment and focusing on sustainability and the environment.

Additionally, Kaizen AMS was awarded the Runners-up position in the ‘Energy Smart Initiative of the Year’ category for adopting new technology and approaches to minimize energy consumption, implementing new energy campaigns, and retrofitting initiatives, and for introducing new technologies for renewable energy and policy implementation.

Kaizen was also runner-up in the ‘Adoption of Tech Award’ for successfully adopting PropTech and other revolutionary technologies within their operations and for implementing a successful digital transformation strategy.

Since its inception, Dubai Land Department, or DLD has played an instrumental role in taking Dubai’s property market to new heights and making it the ‘apple of the eye’ of global investors. The incredible efforts laid by Dubai Land Department and its visionary leader His Excellency Sultan Butti Bin Mejren have yet again been recognized at the global level. 

According to the latest Global Real Estate Transparency Index (GRETI) -2022 by JLL, Dubai has been named as the most transparent city in the Middle East and North Africa (MENA) region. This achievement is significant as for the very first time; Dubai’s real estate sector has entered the prestigious ‘Transparent’ tier to become the only city in the MENA region. 

Where does Dubai Stands Globally?

Dubai is at the 31^st spot in the world in the latest Global Real Estate Transparency Index (GRETI) -2022 closely followed by the UAEs capital, Abu Dhabi which is at 45th rank, and Saudi Arabia at the 49th rank. Both Abu Dhabi & Saudi Arabia are under the ‘semi-transparent’ tier. 

The list of 99 nations is led by the UK followed by the US and France. Australia, Canada, the Netherlands, Ireland, Sweden, Germany, and New Zealand are among the top ten nations.

The Role Played by Dubai Land Dept. to Make Real estate Transparent

Dubai Land Department has played a crucial role in leading the real estate sector towards transparency. It has invested in a vast range of unconventional technologies and has launched several applications to provide real-time information to all real estate stakeholders. According to HE Sultan Butti bin Mejren – “the government’s ongoing efforts that are driving digital services and data provisions, new regulations and sustainability reporting have helped advance Dubai’s ranking in this year’s Global Real Estate Transparency Index, which is an important guide used for cross-border investment and corporate occupiers to inform their decision making,”.

Here are the top measures taken by DLD to make Dubai real estate transparent –

1. Publishing Transactional Data

One of the key measures taken by the Dubai Land Department to make the real estate operations transparent is by making more data available to potential investors to empower them in making sound decisions. A few years ago, the Land department launched a service to publish transactional data along with a service charge index which allows potential investors to analyze the maintenance charges before they make a final purchase decision. This initiative includes making all-important real estate information available on the website such as: sales transactions, gifts, mortgages, Ejari registrations, valuations, land, building and unit data, broker, developer, and projects data, along with unique identifiers for each transaction, such as property IDs and Ejari contract numbers.

2. ‘Green List’

In a transformational move, Dubai Land Department (DLD) launched its revolutionary ‘Green List’ initiative to promote active communication between the owners and the brokers and minimize the complaints of the owners pertaining to brokers contacting them without their content. The ‘Green list’ initiative has proved to be instrumental in making real estate operations transparent by ensuring only legitimate brokers can contact owners. Furthermore, the green list also plays an important role in minimizing direct marketing which is indeed a serious real estate violation and often results in a surge in property prices.

Green List overcomes many gaps and ambiguities involved in serving the tenants, owners, and brokers effectively. This initiative is in line with the Dubai Land Department’s strategic goals of ensuring utmost customer satisfaction through innovation and by introducing an advanced technology platform to regulate and lead the real estate sector towards sustainability. The green list also ensures the highest level of protection and integrity of consumer data. 

3. DubaiRest App

DubaiRest is one of the biggest initiatives of the Dubai Land Department to lead the real estate sector towards transparency. DubaiRest is the smart real estate platform for real estate services, through which all real estate services are performed by the real estate stakeholders such as: property owners, tenants, real estate brokers, developers, real estate valuators, and investors. 

DubaiRest is a game changer in allowing property owners to access their properties through a real estate wallet which provides them with real-time data on the current prices of their properties, rental return, and service charges. The app. also provides important information on the rental index and the sale index in different periods. Dubai REST also facilitates property owners and tenants in managing their leases such as: registration, renewal, and cancellation, and in submitting the rental disputes and following up on them.

4. e-NOCs

On April 20, 2021, Dubai Land Department (DLD) launched its one-of-its-kind Electronic No Objection Certificate (e-NOC) system to simplify the process of obtaining no-objection certificates digitally for the property owners. e-NOCs are only applicable for owners of the buildings where the budget of the current year is not approved or the current quarter of that building is not invoiced for any reason. e-NOCs facilitate the owners to directly proceed with the transfer after clearing all the service charges which are invoiced through Mollak. e-NOCs play a vital role in reducing the additional cost on the sellers as developers and strata management firms demand. Only ready properties managed by Owner association management companies and owners receiving service charge invoices from the Mollak system are eligible for e-NOC.

5. Dubai Real Estate Institute (DREI)

To keep all real estate brokers and stakeholders aware of the happenings in the sector, Dubai Land Department launched continuing education program as the second phase of empowering brokers working in the Dubai real estate market through vocational training courses. The vast range of courses is designed and introduced by the Dubai Real Estate Institute (DREI), the educational arm of the Dubai Land Department in collaboration with the Real Estate Licensing Department in the Real Estate Regulatory Authority (RERA). The courses are developed on an academic basis and aim to improve the efficiency of all the real estate stakeholders in Dubai. One can register for the courses through the website – http://drei.gov.ae/default.aspx

6. Well-being Certificate

During the UAE Innovates 2021 week from February 21-27, 2021, Dubai Land Department (DLD), through its Real Estate Regulatory Agency (RERA), launched the Well-being Certificate in cooperation with the International WELL Building Institute (IWBI) in New York and Facility Management companies. The certificate targets various freehold buildings managed by common-area management companies licensed by RERA. The certificate is based on evaluating the target buildings on world-class health and safety standards, including policies and procedures that enhance the health and safety of residences and workplaces, to the extent to which maintenance procedures and facilities management are applied to reduce diseases, contribute to the adoption of emergency preparedness plans, increase awareness and the involvement of decision-makers, cleaning procedures and the management of air and water quality. Well-being Certificate played a key role in making the real estate operations transparent and safeguarding the investors from investing in unhealthy buildings.

Final Words

Dubai Land Department has always been an integral part of the monumental success of the real estate sector. This is the reason that city’s real estate is considered one of the most transparent in the Middle East within a very short span and has attracted the attention of global investors. Dubai’s property market has gained significantly in the transparency index which has been led by the vast number of new regulations around market lending practices, beneficial ownership tracking and sustainability reporting, digital services, and data provision. Some of them include – service charge management, automated valuations, and transactions databases through the Dubai REST platform. The gain in the Global Real Estate Transparency Index (GRETI) -2022 is also a big boost for the upcoming initiatives announced by the Dubai Government with private companies such as transaction-based sales indices and a building wellbeing certification.