The belief that green properties bring multiple benefits for both residents and developers is becoming universal. The real estate buyers are realizing the integral role played by the green buildings in minimizing carbon emissions and contributing toward one of the biggest global agendas – Climate Change. Across the UAE, some landlords are evaluating the cost and the benefits of making their portfolios greener to meet the expectations of the property buyers as well as the tenants who are becoming more environment-friendly.  

Rising international focus on climate change, Conference of the Parties (COP26) summit and UAE’s net-zero initiative to minimize emissions and pledging to invest almost $165 billion in clean energy by 2050 are the other major reasons for the landlords to construct green buildings.

Covid-19 has created an urge for employee safety to ensure they feel comfortable coming to the office. To take employee safety to the next level, corporations are choosing green properties to prioritize employees’ well-being and adapt to their occupational strategies and achieve their sustainability goals.

What is a Green Building?

The World Green Building Council (WGBC) defines a green building as – “a building that, in its design, construction or operation, reduces or eliminates negative impacts, and can create positive impacts, on our climate and natural environment.”

Some of the features suggested by WGBC which make a building green include –  

• Efficient use of energy, water, and other resources
• Use of renewable energy, such as – solar energy, pollution, and waste reduction measures, and the enabling of re-use and recycling
• Good indoor environmental air quality
• Use of materials that are non-toxic, ethical, and sustainable
• Consideration of the environment in the design
• Construction, and operation
• Consideration of the quality of life of occupants in design
• Construction, and operation
• Design that enables adaptation to a changing environment

Exponential Rise in the Demand for Greener Properties

There has been a huge rise in the demand for greener and energy-efficient properties not only in the UAE but across the Middle East. As per the Knight Frank – 2021 survey – proximity to green space and good air quality topped the list of location features and are more important to home buyers in the Middle East than their global counterparts. Half of the respondents cited the energy efficiency of their next home as being a ‘very important‘ issue, compared to 42% of global buyers.

There has been a rising demand for green and energy-efficient properties in the UAE. The region is at the pinnacle in the Middle East in the national concentration of sustainable buildings and stands at the 14th spot in the world with 869 green-rated buildings, according to the 2nd edition of Knight Frank’s (Y)our Space report – 2021 which surveyed almost 400 businesses worldwide on their workplace strategies and real estate needs.

This sends a strong signal to the developers and planners to embrace building green properties to attract eco-friendly homebuyers in the UAE.

Reasons for Rising Demand for Green Properties

Here are the top 7 reasons for the rising demand for Green Properties in the UAE

1. Increasing Awareness

The last decade has witnessed a colossal rise in the awareness among the UAE real estate developers and homebuyers about sustainable construction practices and the adverse effects of climate change, rising energy consumption, and carbon emission on their health and life which has significantly increased the demand for greener properties. 

The rising awareness about the advantages of green buildings is very evident from the leading studies conducted recently. The research conducted by EcoMENA in 2021 titled – ‘Green Building Trends in the Middle East’ reveals that in the last decade, green building design has become a top priority of real estate developers across the Middle East. The number of LEED-registered buildings has increased rapidly across the region, from 623 in 2010 to more than 2500 in 2020. UAE is ranked among the top 10 countries that hold LEED certifications in the world with Dubai ranked 3rd in the list of cities having the highest number of LEED-certified buildings. UAE has more than 600 LEED-certified projects.

2. Supportive Government Policies

UAE has launched the ‘Net-Zero by 2050 Strategic Initiative’ to reduce carbon emissions and will invest over AED 600 billion in renewable energy to minimize carbon emissions and move the nation towards cleaner energy. 

Other initiatives launched by the UAE to reduce carbon emissions which will increase the sales of green properties include –  UAE Vision 2021, the UAE Centennial 2071, and the UAE Energy Strategy 2050, which sets a 50% target for clean energy in the country, among others. The UAE government has already established several sustainable development goals which serve as a guiding principle for most upcoming real estate projects in the region.

3. Lower Construction & Operational Cost

Research conducted by the World Business Council for Sustainable Development (WBCSD) reveals that the cost of installing green building features and technologies is significantly overestimated. Many developers perceive that the upfront cost of a green building is, on average, 17% higher than the original cost of a similar traditional building, however, that’s not true. 

The research by the U.S. Green building Council (USGBC) reveals the initial cost of a green building is only 2%-3% higher than its non-green counterpart. Moreover, green buildings consume 25%-35% less energy than non-green buildings and have 14% less operation and maintenance costs than their traditional counterparts. 

Modern property owners also prioritize renting or leasing green buildings or apartments due to their cost benefits. Green buildings also allow developers to save 20% of the initial construction cost annually by reducing energy consumption. Furthermore, green buildings allow developers to complete large-scale green projects at a much larger scale resulting in more revenues and business expansion.

Using incentive technology such as Virtual Power Plants (VPP) combined with an onsite solar asset will further allow real estate developers to reduce the operational cost and utility cost and explore new models of maximizing income outside of increasing rent and making their properties more attractive for eco-friendly homes buyers.

4. Lower Rents & Service Charges

Green properties are a win-win situation for every stakeholder. Due to their lower construction cost and energy consumption, green buildings have minimal operational costs. This is indeed good news for the homeowners and tenants as lower operational cost of the building leads to a reduction in their energy bills, service charges, and rents.  

The lower service charges and rents often result in higher resident satisfaction and occupancy rate for the landlords and developers.

5. The rise in Environment-friendly Buyers

 Rising awareness about the adverse impact of emissions on the health of humans as well as on the environment has attracted a number of homebuyers toward green properties. This is encouraging real estate developers to construct more green properties to foster quick sales.

According to Khalid Bushnaq, CEO of Energy Management Services (EMS) “two years ago we had to convince property developers to go green and think about efficient energy. The majority didn’t know what ‘green’ meant and assumed there was an extra cost attached. Now developers want to go green and some are achieving Leadership of Energy and Environmental Design (LEED) certification, an internationally recognized green building rating system. Many large developers are creating their own green design guidelines to be followed by smaller developers building on their plot of land,” said Bushnaq.

There has been an exponential surge in buyers prioritizing green properties as they support a cleaner environment for future generations. 

6. Investors Prioritizing Greener Properties for Letting & Sales

There has been a rise in the investors and businesses prioritizing the green credentials of a property while making their purchase decision. This will indeed spur their saleability and rentability in the coming days. To cater to the demand of modern and environment-friendly buyers, real estate developers are coming up with greener properties and are evaluating the cost and the benefits of greenifying their portfolios.

7. Rising Sustainability Concerns

There have been rising concerns about sustainability among both residential & commercial clients. Corporates across the globe are showing great interest in going sustainable and prioritizing sustainable buildings for their offices.   

According to the 2nd edition of Knight Frank’s (Y)our Space report, “40% of firms have set a net-zero carbon target and, of those, 77% are aiming to achieve this by 2030. 87% of firms surveyed had less than half of their current global real estate portfolios either ‘green’ or ‘sustainable’.

Rising sustainability concerns among the buyers will accelerate the sales and rents of the green properties and will play a crucial role in minimizing the emission rate of the UAE.

Summary

Here is the summary of the article –

• There has been a rise in the attractiveness of greener properties among buyers across the UAE to reduce carbon emissions and move towards a healthy lifestyle.
• Climate change, COP 26, and UAEs investment in clean energy by 2050 have been the major drivers in raising awareness of green properties
• Along with the residential, the commercial sector is also prioritizing moving their offices to green properties to prioritize employee’s safety and adapt to their occupational strategies
• A Green building is a building that, in its design, construction or operation, reduces or eliminates negative impacts, and can create positive impacts, on our climate and natural environment.
• The Knight Frank – 2021 survey on Middle East buyers reveals that proximity to green space and good air quality topped the list of location features. Half of the respondents considered the energy efficiency of their next home to be a ‘very important’ issue, compared to 42% of global buyers.
• UAE is ranked 14th in the world with 869 green-rated buildings

• The top reasons for the rising demand for green properties are as follows

• Increasing awareness
• Supportive government policies
• Lower construction & operational cost 
• Lower rents & service charges
• Increase in environment-friendly buyers
• Investors Prioritizing Greener Properties for Letting & Sales
• Rising sustainability concerns among the buyers

‘Metaverse’ has become one of the biggest buzzwords of the 21^st century. The rising popularity of blockchain applications has been one of the major reasons behind the conquest of Metaverse.  The term has become so popular that Facebook’s CEO –  Mark Zuckerberg changed Facebook to Meta–which is an attempt to usher in the metaverse, a new world of built-in virtual reality. Many wonder about the origin of the ‘Metaverse’. The terms first came into the limelight in Snow Crash – a book by famous author Neal Stephenson in 1992. The book was a science fiction which turned out to be a cornerstone in the development of digital platforms.

There has been an exponential surge in the number of blue-chip & Fortune 500 companies buying property in Metaverse as it empowers them in reaching out to new customers. 

Some of the examples of top-notch companies that have bought virtual land at metaverse are as follows –

• Microsoft has made US $69 Million Dollar Down Payment on the Metaverse into a new open source project called Decentraland 
• Big 4 auditing firm – PricewaterhouseCoopers has a plot in The Sandbox, where it aims to set up “a Web 3.0 advisory hub to facilitate accounting and taxation. 
• Adidas has also bought land there, as “a way of expressing our excitement around the possibilities it holds”, 
• Warner Music Group is working to set up a virtual concert venue. 
• Republic Realm, which spent US $4.3 million on land in The Sandbox (the biggest deal so far) 
• Tokens.com’s purchased land worth US $2.4 million in Decentraland

What is the Metaverse?

For those who are hearing this term for the first time, the metaverse is a digital space where users can communicate and move virtually in their three-dimensional avatars or digital representations. It is expected to be the future of business and human interaction. 

Metaverse is composed of virtual worlds which consist of real estate segments called parcels. The platform allows users to purchase and sell parcels using the Metaverse platform’s currency. Metaverse is based on the principles of augmented reality and merges physical and virtual existences in a shared online space.  The rising popularity of Metaverse has encouraged global corporations from Microsoft to GUCCI to invest in these platforms to elevate the user experience and foster sales.

How do Real Estate Investors Buy Land in the Metaverse?

The most effective way to buy land on the metaverse is through cryptocurrencies. Some of the popular cryptocurrencies used by the investors include – Ethereum, the Sandbox (SAND), and MANA (connected to the community-based Decentraland platform). SAND & MANA have always been the preferred choice of the investors when it comes to owning online land and property due to its established infrastructure. Investors can purchase land directly on these platforms. The sales & ownership of metaverse land are maintained via. transfer of non-fungible tokens (NFTs) in a wallet capable of storing these. Some of the most preferred wallets today include – Binance and Metamask. Investors can either buy them directly from the platform or they can choose to purchase them from third-party resellers’ markets.  Opensea.io and nonfungible.com are some of the most popular third-party reseller platforms who act as decentralized estate agents for the digital domain. These platforms allow sellers to list their property & prices and facilitate buyers in negotiating. 

According to an article by CNBC, the last few years have witnessed an exponential rise in investors buying land in Metaverse. Metaverse has completely revolutionized the way real estate used to operate. Not only real estate investors, but lenders and mortgage providers are lining up to make the most of this opportunity and buy digital real estate.

Top Reasons to Buy Land in Metaverse

Here are the top 7 reasons for the real estate investors to invest in virtual property in the metaverse

1. Allows a Large Number of Buyers to Invest

Unlike the actual real estate world, Metaverse allows everyone to invest in Metaverse land. The land parcels are available on various platforms at different prices based on their size, shape, and location. Metaverse allows buyers to set up a cryptocurrency wallet based on their preferences and start investing in global real estate. Metaverse also makes it possible for small investors to buy land by allowing them to purchase micro land parcels based on their affordability.

2. Higher Returns 

 Buying virtual land on metaverse might cost exactly like real land however returns on investments are multifold higher than in the real world. There are instances where investors have enjoyed returns up to 1000% in a very short period of time.

3. Countering Real estate Malpractices 

Metaverse is powered by blockchain technology which makes it impossible for any third party to occupy the land illegally or perform any type of land scam.  Every transaction at metaverse is recorded in a blockchain ledger which makes the entire process of buying land and registry more transparent. This overcomes any possibility of common real estate frauds such as – delays in possession, forced cancellation of land, selling land without authorization, and making fake promises to name a few.

4. Stable Source of Investment

Stability is the most important factor which makes Metaverse an ‘apple of an eye’ of global real estate investors. Buying land in Metaverse allows the investors to use it for multiple purposes such as: constructing a house or an office space. Investors can also buy land in the metaverse for investment purposes as well. However, like any other investment, investing in the metaverse is also subjected to risks. There is no assurance that the value of the land will only go up. However, the data suggests that prices of a parcel of land in the metaverse have increased at an exponential pace. When Decentraland held its first LAND auction at the Terraform Event in December 2017, a parcel of land cost merely US $20. Those parcels sold for an average of over US $6,000 in 2021. By the start of 2022, the prices have skyrocketed to approximately US $15,000 per LAND token. The average prices have increased by a factor of 10 over the past year. There has been a huge proliferation in the interest of the investors in buying digital land as they consider it a stable source of investment which won’t lose its value drastically anytime soon like any other investment despite current economic downturns such as – the Covid-19 or the Russia-Ukraine war. Investors are also banking on buying-to-let options as well to take advantage of the thriving rental market.

5. Size & Location of Land Holds the Upper Edge over Utility

In the ideal scenario, the investors prioritize the utility factor of the land over its size or location. However, in the case of digital real estate, it’s another way round. The real utility is the least priority of the investors as they will never inhabit the land or visit it in person. The primary objectives of buying land in Metaverse are either to develop it or to lease it out to a third-party entity. Thus, size & location become key factors compared to utility. In the last few years, there has been a surge in the number of real estate developers and tech developers looking to build master communities which are equipped with ultra-modern facilities such as – clubs, schools, and high-end restaurants whilst living in the metaverse. Taking it to a new level, a list of real estate developers in the US have unveiled a one-to-one metaverse replica on an augmented reality platform to complement the physical town. 

Technology companies and real estate developers are joining hands to build virtual cities. Recently, an Indian firm – Lepasa created virtual cities in Metaverse and plans to create 15-20 different cities over 416 sq km, with each city having a different theme.

6. Easy to Secure Loans

Another reason to embrace buying land in the metaverse is it is easy to secure loans. Loans are given easily through a multi-blockchain network which facilitates faster liquidity deployment at a far lower cost. Decentralized finance (DeFi) is the only entity which facilitates money lending or borrowing of a cryptocurrency against collateral. In the metaverse, the collateral is a Non-fungible token (NFT). DeFi allows anyone to borrow crypto assets without requiring KYC documents or performing a credit check. It is highly secured and is automated through smart contracts.

7. Convenient to Host Community Events and Commercial Activities

Buying a digital land at metaverse also opens an opportunity to host real-world events such as: community events, workshops, exhibitions, trade shows, and social gatherings. Attendees can attend these events from the comfort of their homes. Several companies have used metaverse to host events. DAMAC Properties is also in the process to build a novel Metaverse project, featuring numerous brand collaborators such as Paramount Hotels and Resorts, Fendi Casa, Cavalli, Radisson, Versace Home, The Trump Organization, and Rotana. Dubai has also hosted the world’s first-ever economic summit on Metaverse in March 2022.

Summary

Here is a short recap of the top 7 reasons for real estate investors to invest in Metaverse

• Allows a Large Number of Buyers to Invest
• Higher Returns 
• Countering Real estate Malpractices 
• Stable Source of Investment
• Size & Location of Land Holds the Upper Edge over Utility
• Easy to Secure Loans
• Convenient to Host Community Events and Commercial Activities

Dubai’s real estate sector is alluring the attention of global investors and surpassing its previous milestone every year. This is very evident from the substantial rise in property prices and primarily rental value. Expo 2020, Masterplan 2040, and the successful handling of Covid-19 have resulted in an influx of expats investing in Dubai’s real estate or starting a business in the city which led to an increase in the rental value of both residential and commercial property. 

Successful handling of Covid-19 has attracted the world to Dubai which is very evident from the latest report by the Dubai Statistics Centre which confirms that Dubai’s population crossed the 3.5 million mark as of April 2022.

Substantial Increase in Rents for Apartments & Villas 

According to a report by CBRE titled – ‘Dubai Residential Market Snapshot April 2022’, the average rent for the property in Dubai has increased by 13.1% in the last 12 months. The average rent for apartments as of April 2022 surged 11.7% compared to the previous year. Villas surpassed apartments in terms of rent increase and witnessed a rise of 22.5% compared to 2021. The average annual rent for an apartment is AED 80,000 and the rents for Villas stood at AED 238,441.

In Downtown Dubai and Palm Jumeirah, in the year to March 2022, the average rent for an apartment increased by 29.4% and 39.6% respectively. Over this period, average villa rents in Emirates Hills, Jumeirah Islands, and Palm Jumeirah increased by 9.3%, 31.3%, and 36.7% respectively. In the year to date to March 2022, new supply delivered in Dubai totaled 7,812 units, with an additional 56,871 units scheduled to be delivered in the remaining three quarters of the year

According to the CBRE Report, Palm Jumeirah and Al Barari were at the pinnacle in terms of an increase in the rents. The average asking rent at Palm Jumeirah was AED 197,482 and AED 801,940 at Al Barari.

Which Areas Witnessed Increase in Rents? 

Apartments

According to the CBRE Q1, 2022 report, the areas where the rents for the apartments increased at the fastest pace in the first quarter of 2022 include Business Bay (4.9%), International City (4.2%), Dubai Marina (4.1%), Damac Hills (4.1%), Palm Jumeirah (3.9%), The Old Town (4%), Jumeirah Beach Residence (3.5%), Downtown Dubai (3.3%), Sports City (3.2%), and Jumeirah (3.1%). 

The areas where the rents for the apartments witnessed a steep decline include Liwan (-0.9%), Bur Dubai (-0.6%), and Arjan (-0.4%).

Villas

In terms of Villas, the areas where rents increased the most in Q1, 2022 include Jumeirah (4.8%), Sustainable City (4.8%), Emirates Hills (4.7%), Arabian Ranches (4.5%), and Damac Hills (4.5%). 

The areas where rents for the villas witnessed a decline include – Deira (-1.9%), Jumeirah Park (-1.6%), Reem (-1.2%), and Al Furjan (-0.4%).

Upswing in the Property Prices

The CBRE Q1, 2022 report reveals that the average prices for the property increased by 11.3% in the year to March 2022. Over this period, the average prices for the apartment increased by 10% and 20.2% for villas. As of March 2022, the average prices for an apartment were AED 1,118 per square foot and the average price for a villa was AED 1,267 per square foot. 2014 was one of the best years for the real estate sector. Compared to 2014, these rates per square foot are 26.2% and 12.3% below the peak, for both apartments and villas respectively.

In the apartment segment, Downtown Dubai witnessed the highest average sales rate per square foot of AED 2,021 while Palm Jumeirah was at the top in terms of villas segment where the highest average sales rate per square foot stood at AED 2,910.

Transaction volumes in Q1 2022

Dubai’s residential market is breaking records everywhere and transaction volumes are not an exception.  According to the CBRE Q1, 2022 report, the total volume of transactions reached 19,009 in the first quarter of 2022 which was the highest figure ever recorded in the first quarter of the year.

Only in the month of March 2022, Dubai’s residential market witnessed a total volume of transactions reaching 7,865 which was an 83.4% increase from the previous year. Over this period, off-plan sales increased by 94.6 % and sales in the secondary market increased by 76.1 %.

Forecast

The rents in mid-market and affordable segments are expected to rise in the coming quarters while rents in luxury or premium real estate will consolidate and they have reached their highest mark since 2020. Expo 2020 has played a decisive role in fostering the demand for luxury real estate however as the grand event is over now most of the Expo-related demand has ended. 

Dubai witnessed a colossal increase in the number of expats moving to the city due to strict Covid-19 related restrictions in their home countries. However, as the pandemic situation is normalizing, Dubai is likely to witness a large number of affluent expat buyers moving out of the city to their home nations which can adversely impact the demand for luxury real estate. However, overall Dubai real estate will benefit from an increase in the number of new expats taking jobs in Dubai which will boost the demand for affordable residential property. The current and upcoming free zones in Dubai will attract several new entrepreneurs to start new businesses in the city. Dubai issued 72,152 new business licenses in 2021 and in Q1, 2022; the new business licenses already reached 24,662 which is an increase of 58% y-o-y. The upcoming new businesses have created more demand for office space which will boost the demand for commercial real estate. At Business Bay, average rents have increased from AED 76 per square foot to AED 101 in these last 12 months. The rents for Grade-A offices in Dubai have increased 30-40%. The establishment of new businesses will create more demand for accommodation and will further boost the demand for apartments and villas in the coming months. This is indeed ‘a glad tidings’ for Dubai’s residential real estate.

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

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

The Implementation of Blockchain in the Property Management Sector

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

Real estate Giants benefitting from Blockchain Implementation in their operations

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

• Dubai Real Estate Department Signs MoU With Telecoms Firm to Implement Blockchain
• Emaar announced plans to launch a blockchain referral and loyalty token platform later this year
• Dubai Land Department achieves a technical milestone with the adoption of Blockchain technology in cooperation with Smart Dubai and other partners

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

1. Transparency

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

2. Smart Contracting

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

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

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

3. Issuing Possession Documents & Countering Frauds

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

4. Minimizing the Number of Intermediaries

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

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

5. Assists in Leasing & Payments

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

6. Countering Sub-leasing and other Fraudulent practices

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

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

7. Overcoming  Siloed Databases

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

8. Facilitating Real estate transactions 

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

9. Simplifying Rent Collection Process

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

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

10. Creating Memorable Experiences for the Residents

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

Summary

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

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

As the biggest grand event is coming to an end there is curiosity in the mind of everyone about the future of the Expo 2020 site and how Dubai will use it post March 31, 2022. Being a frontrunner in business, the Dubai government has well-thought plans to use every component of the Expo site for the greater good of Dubai and the UAE. 

The UAE government is in the process of converting the Expo site into a city for the next generation of entrepreneurs.  It is working on developing a strategic innovation policy to offer a wide gamut of Free Zone incentives and attract the best talent from across the globe to start a business. Commenting on the future of Expo site, Tala Al Ansari, Director, and Head – Innovation ecosystem & Scale2Dubai, Expo 2020 said – “it offers entrepreneurs and start-ups a platform for ease of set up and scale. Its pro-business regulatory environment and global logistics power mean entrepreneurs can go from licensing to launch, at pace with a strong network of incubators and accelerators ready to support.”

Let’s find out how Dubai is planning to use each component of the Expo site post-March 31, 2022:

1. ‘Temporary Pavilions’ to be transformed into Word-class Infrastructure

There are two types of pavilions at Expo 2020 – Temporary pavilions and Legacy pavilions. A large number of countries like the US, Russia, and China have temporary pavilions at Expo 2020. Temporary pavilions are the pavilions created by those nations who have leased them on an ad-hoc basis. Post-completion of Expo on March 31, 2022, the government will tear them down and use the space to develop – District 2020 – an area studded with world-class & unconventional offices, commercial complexes, and residential properties. 

2. The Legacy of the ‘Legacy Pavilions’ Will Last for Long

The lifetime of the Legacy pavilions will be extended post-completion of the Expo. According to Anoosha Al Marzouqi, Director at the Opportunity Pavilion – “Nearly 80% of what the Expo has built will remain in legacy,”. The ownership of Legacy pavilions will either be in the hands of the nations who have established them or with the Expo 2020 organizers. Legacy pavilions will always have a place on the Expo site even as a new satellite township begins taking shape. Some of the popular Legacy pavilions at Expo 2020 include – The Mobility, Sustainability, and Opportunity pavilion. Countries which have legacy pavilions include – the UAE, Saudi Arabia, and India.

3. Legacy Structures

Legacy structures are buildings different from pavilions and were constructed to fulfill the utility and commercial requirements of the Expo. The government has plans to make them serve as a way for the new offices and homes. Some of the popular legacy structures which will stay permanently include – Saudi Arabia’s pavilion and Al Wasl Dome. To meet the entertainment requirements, AR Rahman’s brand-new musical project in Dubai, the Firdaus Studio will continue to remain the legacy structure. Expo’s Rove Hotel will cater to the hospitality needs of the area post-completion of Expo 2020.  One of the biggest tourist attractions of the Expo 2020 – ‘Gardens in the Sky’ will also continue to remain as a legacy structure.

4. Construction of ‘District 2020’ to Boost Employment

District 2020 is referred to as ‘the future of Expo 2020 site’. This ‘one-of-its-kind’ area will be developed to support the future of working and living and facilitate connection and collaboration. District 2020’s master plan reveals the plans to build a vibrant urban environment with 100s of residential areas, co-working hubs, and green spaces to accommodate over 145,000 people at full capacity.

District 2020 will be the home to Fortune 500s, SMEs, start-ups, entrepreneurs, and innovators. It will play a decisive role in supporting businesses of all kinds. Around 80 % of the Expo-built structures at the 4.38 sq km site will be repurposed to transform it into a 15-minute futuristic, human-centric city where people can work, live and explore. While District 2020 is the name of the Expo site, it will be transformed into a residential and commercial community called the ‘15-minute city’.

According to Tala Al Ansari – “we have received over 3200 applications for startups from 129 countries around the world. 628 (companies) have been shortlisted, and the first cohort of 85 scaleups from 27 countries around the world will join us at District 2020,”  She further said – ‘These 85 startups will receive a soft landing at District 2020 and will become part of our innovation ecosystem,” 

District 2020 will be a boon in supporting Dubai’s current and future growth ambitions and has been identified as the fifth urban center in the Dubai 2040 Urban Masterplan. As of now, District 2020 has already attracted some of the world’s leading industrial, tech and logistics giants, including Siemens, Siemens Energy, Terminus Technologies, and DP World.

5. ‘Scale2Dubai’ Initiative to Accelerate the Growth of District 2020

Scale2Dubai initiative is launched to provide an incredible opportunity to start-ups & small businesses from across the globe to expand within the District 2020’s ecosystem. It is a beguiling opportunity for the companies to scale their business in Dubai by capitalizing on the partnerships formed during the six-month Expo 2020 Dubai. 

Scale2Dubai is launched to carry forward the Expo 2020 vision of gathering global minds and promoting diversity, innovation, and knowledge-sharing within District 2020. This programme is focused on attracting startups or businesses in the early stages of growth from key industries such as: Travel & tourism, transport & logistics, education, and construction.

Focus on Technological Development

Scale2Dubai programme will lay special emphasis on the technological development of Dubai and target businesses focused on disruptive technologies like – the Internet of Things (IoT), Big data, 3D printing, Artificial Intelligence (AI), Robotics, Blockchain, and any other advanced technologies to ensure Dubai thrive in the area of technology & innovation. Scale2Dubai initiative will focus on key sectors like – Smart Cities, Smart logistics, Smart mobility, and Industry 4.0.

‘Scale2Dubai’: Key highlights

1. Two years Free Workspace
2. Two years visa
3. Business Set-up
4. Community Lifestyle
5. Two years of subsidized urban living
6. Access to special rates for service providers
7. Equity free programme
8. Opportunity to attend Social & Networking events
9. Opportunity for small businesses to connect with big corporations operating in District 2020 who can assist them in their growth and lead their business

It is the law of nature that with the passage of time the value of most things degrades and property is not an exception. Rising pollution levels and climatic conditions such as: heat and rainfall are also playing a key role in minimizing the life-cycle of a building. Thus, it is widely important for real estate developers as well as homeowners to ensure the property is well-managed to maintain its value. This creates an urge to hire an Owners’ association (OA) firm to manage your property to ensure it remains at peak performance and increases asset lifecycle.

What is an Owner’s Committee?

An owner’s committee consists of a group of individuals who act as the elected representatives of the property owners. As per  Law No. (6) of 2019 Concerning Ownership of Jointly Owned Real Property in the Emirate of Dubai, concerning the ownership of the jointly owned real estate in the Emirate of Dubai (the “JORE Law“), Owner’s Committees’ are responsible for overseeing the interests of the jointly owned property (JOP). 

Appointment and Eligibility

The Real Estate Regulatory Agency or RERA oversees the nomination of the Owner’s Committee Members for each JOP with up to nine owners as committee members who act as representatives for all the owners in the building or community. Each member has one vote while voting on the decisions of the Owners’ Committee. OC members come in odd numbers to ensure fair voting.

According to Article 22(c) of the New JOP Law, to become a member of the Owners’ Committee, an owner must have a full legal capacity and should be a resident of the project. He/she must have good conduct and have paid all of the service charges owing in respect of its unit. The owner must regularly attend and actively participate in the meetings of the Owners’ Committee. If the member of the Owners’ Committee fails to meet the criteria, he/she will not be eligible to be on the Owners’ Committee and the membership may be revoked by RERA. The New JOP Law directs the Owners’ Committee to meet on a quarterly basis with the first meeting to be held within the month from the date of formation.

As per the law, the developer can also be a part of the Owner’s Committee provided he owns unsold units in the project subject to RERA’s approval. 

Why Should you have an Owner’s Committee?

The Owners’ Committee plays a pivotal role in ensuring the highest standards of excellence in the maintenance and management of the building or community to drive the utmost satisfaction of the residents and owners.

Here are the top 5 ways Owners’ Committee Adds Value to a Community

1. Advisory

The owner’s committee offers recommendations to the Managing Agent on the best ways to manage and operate a building and ensure timely maintenance and upkeep of the common areas to optimize the value of the building. The owner’s committee is also responsible for reviewing the annual maintenance budgets of the JOP and provide their valuable suggestions.

2. Effective Complaint Management to Boost Resident’s Experience

The Owners’ Committee plays a key role in addressing the resident’s grievances by professionally handling the complaints in the JOP to the managing body. In case the managing body is unable to resolve the complaint within 14 days of being notified, the owner’s committee submits it to RERA. Thus, they assist in maintaining residents’ happiness.

3. Oversight and Compliance

The owners’ committee is also responsible for notifying the Managing Body or RERA of any defects or imperfections in the structural parts of the JOP or any gap in the jointly owned areas which requires immediate attention. Owners’ committee liaison with the management company to maintain utmost compliance with environmental laws and government guidelines pertaining to the maintenance of the JOP.

4. Appointment & Replacement of the Managing Company/Agent

The owners’ committee plays an important role in the selection, and appointment of the Managing Agent.  In case the Managing Agent’s performance is not in line with the expectations of owners or doesn’t meet a set standard benchmark, the Owners’ committee can submit a request for the replacement of the Managing Company to RERA. 

The key questions asked by the Owners’ Committee during the replacement process and prior to appointment:

Q1. Can you resolve the biggest issues faced by the Owners’ Committee? 

Q2. How can you reduce the annual service charges?

Q3. What are the actions taken against the owners for non-payment of service charges?

Q4. What differentiates you from other owners association management companies?

Q5. How can you add value to the building?

Q6. How can you enhance the Owners’ / Tenants’ experience?

5. Reporting

The role of the Owners’ committee is crucial in the process of overseeing the reports and verifying the work being carried out by the Owners’ Association Management (OAM) company as initially promised. They are the cornerstone in ensuring the work is being done in line with the standards to ensure utmost resident delight. 

Summary

Top 5 ways Owner’s Committee adds value to a community are –  

• Recommending  the best ways to manage and operate a building to the Managing Agent
• Complaint Management to Boost Resident’s Experience
• Liaisoning with the management company to maintain utmost compliance with environmental laws and government guidelines
• Appointment & Replacement of the Managing Agent  
• Overseeing the reports and verifying the work being carried out by the Owners’ Association Management (OAM) company

With rising awareness, increase in technology, and smartphone adoption, there has been a surge in the demand for RentTech (rent technology) applications. The last five years have witnessed a vast majority of landlords across the UAE realizing the significance of RentTeCh applications to maintain better control over the rentals.

RentTech applications have proved to be a remedy during the time of Covid-19 in maintaining social distancing and safeguarding the landlords from the pandemic. RentTech has completely digitalized the landlord-tenant relationship. The process of showing rentals, collecting rent cheques, lease signings has now been done through RentTech applications from face-to-face earlier.

Here are the Top 5 ways RentTech applications are simplifying the Real estate Operations –

1. Targeting the Potential Tenant

RentTech platforms & applications are empowering the landlords in initiating a well-planned and appealing online rental advertisement to effectively target tenants for their vacant properties. RentTech is also making it easier for the tenants to get in touch with their potential landlords and show their interest in moving to the particular property by just providing their details on the online rental application in a few clicks.

2. Easing the Tenant onboarding Process

Completing a tenant onboarding process is indeed an uphill battle for both landlords as well as tenants. This complex process involves – conducting pre-screening of the tenants, background checks, filling tons of forms & leasing documents, and several face-to-face meetings. RentTech has simplified this bulky and cumbersome tenant onboarding process.

Using RentTech platforms, landlords can perform the onboarding process, background checks, electronic signing of the lease documents, and other necessary tasks, in a matter of a few clicks on their computer or smartphones. Once the potential tenant rental application is submitted, landlords can view it and approve or reject it and can also maintain the tenant screening reports for their future reference. RentTech platforms are also equipped with advanced video conferencing features to facilitate easy face-to-face communication among all the parties involved to ensure a swift & hassle-free onboarding process for the tenants.

3. Facilitating Contactless Rent Collection

The last few years have witnessed several landlords in the UAE moving away from the traditional methods of collecting the rents (such as: cheques) to more unconventional and contactless ways such as via. mobile apps or web applications. This trend gained momentum in the UAE as well as across the globe during the coronavirus lockdown phase to maintain social distancing. Contactless Rent collection not only allows landlords to receive the payments in a few clicks from the tenants but also overcomes their frequent trips to the bank to deposit the cheque.

4. Minimizing Physical Trips by Virtually Identifying the Snags

RentTech is playing an instrumental role in minimizing the number of visits for the maintenance team at the resident’s properties. It allows the maintenance team to identify & resolve a vast majority of snags virtually based on the images or videos uploaded by the resident in the service/complaint request. RentTech significantly minimizes the visits of the maintenance teams which has a major impact on the efficiency of the team resulting in faster resolution of residents’ complaints.

5. Managing the Lease Agreements

The economic downturns and job losses in 2020 have resulted in a proliferation in the number of landlords switching to month-to-month leases to support the tenants going through a tough phase. Landlords are largely embracing the flexibility offered by month-to-month leases due to the suspension of evictions as it facilitates them to terminate the lease at the end of the month if required. RentTech applications are facilitating the landlords in managing the entire process of sending and signing lease agreements virtually. The role of RentTech is also pivotal in empowering landlords in monitoring the expiry dates of the leases on their computers from the comfort of their homes.

Summary

There has been a surge in the demand for RentTech (rent technology) applications among landlords to maintain better control over the rentals. The role of RentTech has been more crucial in the Covid-19 era to maintain social distancing in the communities. RentTech has completely digitized the process of showing rentals, collecting rent cheques, lease signings.

The top 5 ways RentTech applications are simplifying the Real-estate Operations are as follows –

• Targeting the Potential Tenant
• Easing the Tenant onboarding Process
• Facilitating Contactless Rent Collection
• Minimizing Physical Trips by Virtually Identifying the Snags
• Managing the Lease Agreements

Hope you liked the blog. For more informative blogs like this, please visit – https://www.kaizenams.com/blogs/. Follow Kaizen AMS on Social media – LinkedIn, Twitter, Facebook & Instagram

In the last two decades, Dubai has emerged as an epitome of elegance and a symbol of the elite metropolitan lifestyle. It has become a place where every person in the world wishes to be in. The vast credit of this monumental success goes to the city’s real estate sector for constructing world-class skyscrapers. Dubai is at the 4^th spot in terms of the highest number of skyscrapers with 232 buildings above 150 meters and 102 buildings above 200 meters tall, according to the skyscraper center. Due to its exponential development pace, Dubai has also witnessed a huge rise in the number of people from across the globe moving to the city in search of a better lifestyle. Undoubtedly, the success achieved by Dubai has been impressive; however, this epic success has come at the hefty price of degraded air quality.

Where Does Dubai Stand Globally in Air Pollution?

Dubai is at 51 th place globally in the list of most polluted cities with a score of 60 US AQI (US -Air Quality Index) and UAE is amongst the top 20 most polluted countries in the world in 2020 in ‘Air quality and pollution city ranking’ – a global list released every year by the Swiss air quality technology company, IQ Air. Along with residents’ health, the degrading air quality is also taking a toll on the health of the city’s skyscrapers. The increase in air pollution also makes the natural & passive ventilation techniques unsuitable and opens the doors for several health risks. To overcome these issues, many building owners use air filtration. An increase in air pollution also has an adverse impact on the building’s performance and increases its energy usage which can later result in the pollution multiplier effect. 

How Does Poor Air Quality Deteriorate Your Building?

Air pollutants cause significant degradation on the surfaces of the buildings. The adverse effect of these pollutants on building materials is often irreversible. 

Here are the adverse effects of poor air quality on your building

1. Higher Usage of Air Conditioning

The rise in air pollution increases the humidity level and creates an urge for an increasing need for air conditioning. This increases the electricity bills and maintenance costs of the building. Furthermore, an increase in the usage of air conditioning also creates local microclimatic warming impacts basically due to the expulsion of hot air and aggravates the urban heat island effect. This process generates equipment noise which can decrease the practicality of natural ventilation.

According to research conducted by International Energy Agency (IEA), the global energy demand from air conditioners is expected to triple from 1.6 billion in 2018 to 5.6 billion by 2050. This is indeed scary news for the real estate sector as the buildings will face the brunt of deteriorating air quality. The impact of air pollution will also damage the indoor air quality which is damaging for both buildings and people inside it. The research by World Green Building Council (WorldGBC) reveals that most of our exposure to outdoor air pollutants occurs when we are inside buildings, due to infiltration through windows, apertures, or cracks in the building fabric.

2. Increased Need for Cleaning & Repairs

The smoke released by the industries contains carbon monoxide which is produced due to the combustion of fossil fuels. This results in the emission of a vast gamut of dangerous pollutants in the air such as: Nitrogen oxides (NOx) Sulfur oxides (SOx) and Carbon monoxide (CO). Exhaust fumes released by devices and smoke are the biggest sources of carbon monoxide which have a retarding impact on the exteriors of the building and makes them look dirty due to the deposit of dust, soot, and fumes. This increases the need for cleaning, repairs, and retrofitting resulting in a surge in the operational cost of the building.

3. Poor relationships & Reputation

Poor air quality adversely affects the building’s performance and also increases its cost of operations. Higher cost of operations results in rising in the service charges for the residents and often result in higher dissatisfaction. It also has a negative impact on the occupancy rate of the building, relations between building owners, management, staff, and occupants, and above all on the revenues and reputation of the asset manager.

Here are the 8 Tips for Minimizing the Impact of Poor Air Quality on Buildings:

Some of the best ways to minimize the impact of degrading air quality on the buildings are as follows:

• It is always advisable to use surface treatments on all metals to protect them from airborne pollutants and minimize the impact of air quality on buildings to prevent corrosion. Furthermore, galvanizing all the building metal products will make them resistant to corrosion and will reduce the increased need for repairs.
• Installing highly efficient air filters will assist in improving indoor air quality and eliminate the harmful pollutants which cause corrosion. 
• Installing Specialized Filtration Equipment can play an instrumental role in protecting the building exterior from the aftermath of poor air quality by trapping the particles in the outdoor supply air. Furthermore, it also controls the adverse effects of gaseous and chemical pollutants. Specialized filtration equipment also protects the building’s indoor environment from the negative effect of poor outdoor air quality.
• Installing Green Roofs can provide shade and remove the heat from the air through evapotranspiration to minimize the temperature of the building’s surface and the surrounding air. A green roof is a vegetative layer grown on a rooftop of the building to absorb the heat of the building and it acts as an insulator. The green roof also minimizes the energy consumption of the building by performing cooling of the building which has a deep impact on the energy bill. Furthermore, a green roof also reduces the heat stress which arises due to heat waves and improves indoor comfort.
• Installing Cool roofs or reflective roofs on the building will reflect sunlight and heat away and minimize the overall roof temperature. This allows the building to stay cooler and also curtails the energy bills by minimizing the amount of air conditioning. Installing cool roofs also leads to higher energy savings which can be further invested in minimizing the impact of greenhouse gases on the building.
• In scorching humid climates like Dubai, reflective roofs & walls, low emissivity window coatings or films, exterior shades can be instrumental in reducing the energy consumption & costs involved in cooling the building. 
• The temperature of the building’s surface can reduce substantially if the neighboring buildings implement Bio-inspired Retro-reflective Façade, as it minimizes the energy required for cooling the building.
• Another best practice to minimize the impact of poor air quality is Air Sealing. It restricts the passage of air through the building envelope and enhances its energy efficiency. This leads to better management of heat transfer.

Summary

• The pollution level in Dubai is rising every day which is very damaging for its skyscrapers.
• Some of the adverse impacts of poor air quality on your building & business include – corrosion, the higher need for air conditioning due to increased humidity, higher need for repairs increasing the operational cost, poor relations with the stakeholders, increase in service charges, higher tenant turnover, lower occupancy, the decline in developer’s reputation, poor building’s performance, lawsuits, and decrease in the lifespan of the building.
• Using surface treatments on all metals to protect them from airborne pollutants and prevent corrosion
• Installing highly efficient air filters to improve indoor air quality & prevent corrosion
• Installing specialized filtration equipment to protect the building’s exterior from poor air quality
• Installing Green roofs to remove heat from the air and reduce the temperature of the building
• Installing Cool roofs or reflective roofs on the building to reflect sunlight and heat away and minimize the overall roof temperature. This allows the building to stay cooler and also curtails the energy bills by minimizing the amount of air conditioning.
• Installing reflective roofs & walls, low emissivity window coatings or films, exterior shades can minimize the energy consumption & costs involved in cooling the building.
• The temperature of the building’s surface can reduce substantially if the neighboring buildings are implementing Bio-inspired Retro-reflective Façade, as it minimizes the energy required for cooling the building.
• Performing Air sealing in the building to restrict the passage of air through the building envelope and improve its energy efficiency. 

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

Signing up for a commercial lease is the most complex financial commitment made by any entrepreneur. With the passage of time, leasing a commercial real estate activity has become even more strenuous. Thus, the corporate tenants must not refrain from asking any number of questions from the commercial landlord while leasing a property.

Before negotiating the lease, it is of paramount importance for the corporate tenants to consider their financial position and evaluate their requirements accordingly. Corporate tenants must also make sure that the lease terms align with their long-term business strategy. It’s always wise to plan for the future – for both good and bad times. Thus, lease terms must be flexible enough to have provisions for both. In case the business succeeds, the lease term must have an option for expansion and if it doesn’t, the lease terms must also have an option to counter any sort of uncertainty. It is vital to note that leasing a commercial real estate space is more difficult compared to leasing an apartment. A large number of commercial tenants end up getting into trouble in the later stage by not asking the requisite questions and taking the process lightly. To safeguard the corporate tenants from making costly errors while leasing commercial real estate, we have compiled a list of common gaffes they should avoid making it a win-win situation.

Here are Top 7 mistakes corporate tenants make while leasing commercial real estate –

Not Understanding the Lease Terms

It is always advisable to not sign a commercial lease agreement until you read & understand all the terms & conditions. This practice will allow corporate tenants to avoid any potential conflict with the stakeholders such as: landlords, agents, or other tenants in the property. Usually, several corporate tenants find it challenging to comprehend the legal language or jargon used in the agreement. To counter this situation, they must hire an experienced attorney who can provide them clarity on the type of lease term they are signing up for, the frequency & nature of rent increase, subletting obligations, and provisions related to repair & maintenance. 

Most of the landlords design the lease agreements which favor them or according to their interest. Thus, hiring an attorney becomes crucial to ensure the interests of the corporate tenants are not compromised. Negotiation is a very integral aspect while signing a commercial lease agreement. If the tenants come across any type of condition to which they don’t agree, they should negotiate with the landlord to get a fair deal that is in line with their business requirements.  

Not Planning Effectively

It might be surprising for many people to learn that most of the firms don’t have an idea about their exact space requirements. At times, tenants are also subjected to unforeseen circumstances which change their space requirements swiftly. The right property manager or expert can guide the corporate tenants in evaluating their exact space requirements. They can also forecast the dynamic space requirement of the tenants based on the current & future business climate. A property manager can also assist the corporate tenants in planning for any unforeseen circumstances such as – in case of outgrowing the space requirement before the lease expires or during the phase of downsizing. 

Not Conducting Preliminary Research

Many corporate tenants often lack in resources or expertise required to conduct preliminary research to analyze which commercial property will be the best fit for them to lease. They also procrastinate from spending time to search for the best property options, secure legitimate financing from financial institutions, negotiate the terms of the lease, and analyze the rentals. 

It will surely pay you either today or in the future. While shortlisting the property it is fundamental to start your search process 12 months before your existing lease expires. Negligence shown during this process can result in signing up for higher lease terms for less space.

Lack of Inspection

Many corporate tenants make this common mistake of shortlisting a commercial property in a rush as they are in rush to start their business. They often forget to conduct a detailed inspection of the property which costs them dearly in the later stage. 

While shortlisting any property, it is pivotal to check the condition of every part of the property, lighting, flooring, HVAC, and every minor snag and get it repaired from the owner before commencing the business. Identifying these snags in the later stage might cost thousands of dirhams which will hurt the cash flows of the corporate tenants.

To know more about how Kaizen performs inspection and ensure an impeccable handover, read our case study – ‘The Ideal Property Handover Process’

Prioritizing Price over the Location

Many corporate tenants make this common mistake of shortlisting the commercial property only based on its rent and ignore other important factors such as: location, accessibility, presence of basic amenities, infrastructure, closeness to competition, and versatility of the office space. They believe that they should choose those commercial properties with lower rents as rent is a fixed cost and must be kept minimal. However, that notion is miles away from the truth. 

Prioritizing a commercial property based only on the rent while ignoring other important factors often leads to choosing an unfavorable location. This results in ineffective targeting of the customers & hefty business losses. Thus, is of utmost importance for every business to be there where its potential customers are.

Not Considering the Future Requirements

A vast majority of corporate tenants often make the mistake of not considering their future requirements while leasing commercial real estate. What if their business succeeds and their requirements for space increase or vice-versa. Terms of the lease must always align well with the future prospects of the business to avoid any trouble in the future. 

Not Hiring a Property Management Firm

Unless you are an expert in the leasing space with years of experience, it is always advisable to hire an experienced property management firm that possesses knowledge of the prevailing market situation and future trends.  Property management firms can play an integral role in negotiating the lease terms to your advantage. To know more about the factors to be considered while hiring a property management firm, read our blog – ‘Key Factors to Consider When Choosing Property Management Firm’

Kaizen AMS – a tech-enabled property management firm in Dubai, possesses over 15 years of experience in serving some of the biggest corporates in Dubai on leasing commercial space or property.

The key highlights of the services offered by Kaizen AMS to the corporate tenants under commercial real estate leasing include-

• Representing the client as its non-exclusive leasing agent and act as the representative in identifying and securing suitable tenants.
• Managing, tracking lease critical dates, options, and renewals
• Leasing collection, monitoring, and enforcing client/tenant performance against lease commitments.

• Conducting full tenant profile verification (KYC)
• Managing the registration of the lease agreements, assisting tenants with Municipality processes and certificates (Ejari, etc.)

Key Takeaways

• Always read the lease terms thoroughly
• Wisely plan your space requirements 
• Do in-depth research on the pros & cons of the property you are leasing
• Ensure your commercial property is well-inspected before you shift
• Prioritize the location over rents
• Always  make your decision based on the future requirements 

and the most important point to remember is –

• Always remember to hire the expert that can save you from making costly mistakes –because ‘One Stich at right time saves another nine’

Hope you liked the article. For more informative articles, visit https://www.kaizenams.com/blogs/

Dubai Land Department (DLD) is embracing digitization like never before. The year 2020 marked a landmark year for the real estate legislative body surpassing 1.4 million digital services for its customers through its smart channels including – DLD website and Dubai REST app. Digital services are a fundamental aspect of DLD’s digital transformation process.

This exponential surge in the number of digital services is perceived as a big boost for the Dubai Land Department in its commitment to establish Dubai as the world’s premier real estate destination. The increase in the number of digital services will play a vital role in fostering digitization and bringing more efficiency and transparency in the operations of the Dubai Land Department.

How is Dubai Rest is Fostering Digitalization in the Real estate  Sector?

Dubai REST  app. is an integral aspect of promoting digitization at the Dubai Land Department. This revolutionary platform was launched during Cityscape Global 2018, as a comprehensive smart solution to facilitate a vast array of real estate services. 

DubaiREST is a smart real estate platform that provides quick access to all real-estate services to the associated parties. It is a mobile application that offers valuable insights into the UAE real estate market including – property verification through facial recognition. DubaiRest application is widely popular among property owners, real estate brokers, developers, tenants, real estate valuators, investors, property management firms, and all beneficiaries of the real estate sector. 

What Makes DubaiRest App. Distinctive?

The unique features of DubaiRest App. Include:

• Empower all the beneficiaries of the off-plan projects to obtain real-time information about the projects such as:
  • The percentage of completion, the actual pictures of the project
  • The escrow account number
  • Payments due on the owners in the projects that they invested in addition to the possibility of activating the feature of the favorite projects to be able to follow-up the details of these projects.
• DubaiRest is a full-fledged real estate wallet for real estate owners available on smart devices includes all the services that enable them to conduct property transactions (sale, purchase, lease, and mortgage).
• DubaiRest provides comprehensive information about real estate brokers and their performance levels, data of real estate offices and their classifications, valuation companies, management companies, consultancy companies and certified developers.
• The real estate services offered by DubaiRest includes: selling, leasing, submit rental dispute cases and follow up them, submitting applications for issuing a valuation certificate, letter To Whom It May Concern and issuing map through the application.
• The application provides for all of the real estate market beneficiaries with multiple services such as: the rental index and the sale house price index in Dubai and the service charges index of the property with the ability of payment through the application.
• Electronic payment through the electronic payment portal – Noqodi
• The system is available in Arabic and English on iOS and Android.

Launch of Electronic No Objection Certificate (e-NOC):

In its revolutionary decision, Dubai Land Department (DLD) has made it much easier for the property owners to obtain no-objection certificates digitally by launching an e-NOC system at its office on 20 April 2021. 

e-NOCs are now only applicable for owners for 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. Owners can now directly proceed with the transfer after clearing all the service charges which are invoiced through Mollak. The owners can go to the Trustee’s office directly since their employees have access to the Mollak system and they can check the system and advise accordingly.

The foremost reason for introducing the e-NOC system was to minimize the additional cost on the sellers as developers & strata management firms demand & get a fee for the NOC issue irrespective of how old the property is. Only ready properties managed by Owner association management companies and owners receiving service charge invoices from the Mollak system are eligible for e-NOC.

The  New Fee:

Dubai Land Department has not mentioned any fees yet for property sellers for e-NOCs in its press release. This is perceived as a welcoming move by the owners.  

Until now, developers & strata management firms charge between AED 1,500 – 3,000 for the service. In exceptional cases, getting the NOC can cost the owner up to AED 5,000.

Reason behind the Launch of e-NOC:

Owners were unhappy with the fact that whether its one-year-old property or 10 years, developers and owners’ association firms were demanding and getting a fee for the NOC issue. Many of them were charged with AED 1500 even though they didn’t have any outstanding payments with the developer or the property management firm. Owners perceived as an unwarranted charge and as an additional burden on the seller.

Documents required:

The service will be provided by the Real Estate Registration Services Department – Real Estate Registration Assurance Services.

The key documents required for e-NOC includes – sale contract, copy of the owner’s ID or Passport for non-residents, certificate of settlement of payments for the property, attendance of the owner in person, or attendance of an attorney authorised by the owner pursuant to an official notarised document, no objection certificate from the maintenance company, in case of resale of the property in addition to a copy of the ID or passport of the buyer and the sale contract agreement MOU.

The Process:

To obtain e-NOC, the customer must complete the registration assurance application form by visiting the Dubai Land Department Website through electronic services. Alternatively, customers can visit the Dubai Land Department main Office at the Registration Assurance Section, enclosing the documents. DLD  will notify the customer of the readiness of the certificate by email. The time period for e-NOC service is between 14-18 days. There are no updates on the service fee. This link will take you to the PDF which provides instructions on obtaining e-NOC.

The Impact of DLDs Digital Measures on the Real estate sector:

This exponential surge in the number of digital services will also boost Dubai Land Department’s confidence in swiftly adopting emerging technologies such as Artificial Intelligence (AI) & Cloud. This will lead the real estate sector towards complete digital transformation and will create a more supportive and transparent business environment for property investors. This increase in digital services will also strengthen the capabilities of the Dubai Land Department in supporting its ambitious ‘Smart Dubai’ vision in line with the goal of the Dubai Paperless Strategy.  

‘Smart Dubai’ initiative was launched with a vision to make Dubai the happiest city in the world. It involves participation from all city stakeholders which includes – residents, visitors, business owners, parents, and families. The primary goal behind the ‘Smart Dubai’ initiative is to foster a culture of innovation, and creativity in the nation. The initiative will fortify Dubai in keeping pace with the modern global systems.

Furthermore, the launch of the e-NOC system will facilitate the customers in the hassle-free transfer of the property. It will not only bring agility to the process but will also curtail the cost for the seller. At present, NOCs are issued by the developer or a concerned strata management firm.

e-NOC service will also facilitate customers in applying for issuing a No Objection Certificate to register a property in the interim or permanent registration system in case the developer refuses to register the same in the interim registration system (Off-Plan Sale – Initial Sale Form – Initial Sale Contract – Title Deed Issuance). In the case of resale, the No Objection Certificate may be issued if the developer refuses to issue the certificate without legally valid reasons.

Both the initiatives being taken by the Dubai Land Department (DLD) are welcoming news for the real estate sector. This will bring transparency in the process, ease the current legislative framework for the real estate sector and increase the number of transactions every month.

Summary:

• Dubai Land Department (DLD) reached 1.4 million digital services in 2020 for its customers on its website and DubaiRest App. This is indeed a great step in fostering digitalization in the Real estate sector.
• Dubai REST app. is a smart real estate platform that provides quick access to all real-estate services to the associated parties.
• Dubai Land Department (DLD) has also launched electronic no-objection certificates or e-NOC system at its office on 20 April 2021 to minimize the additional cost on the sellers as developers & strata management firms demand & get a fee for the NOC issue irrespective of how old the property is.
• Eligibility: Only ready properties managed by Owner association management companies and owners receiving service charge invoices from the Mollak system are eligible for e-NOC.
• Fees: Dubai Land Department has not mentioned any fees yet for property sellers for e-NOCs in its press release. 
• How to Obtain e-NOC?: To obtain e-NOC, the customer must complete the registration assurance application form by visiting the Dubai Land Department Website through electronic services. 
• The time period for e-NOC service is between 14-18 days. There are no updates on the service fee. 
• Both DubaiRest and e-NOC are welcoming news for the real estate sector. It will make the process of real estate transactions more transparent, simply the legislative framework to boost the real estate transactions. 
•  The e-NOC system will also boost Dubai’s ambitious ‘Smart Dubai’ initiative in line with the goal of the Dubai Paperless Strategy and will allow the customers in the hassle-free transfer of the property to bring efficiency to the process and reduce the cost for the seller

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