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

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

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

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

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

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

Growth Drivers:

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

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

Top Reasons to Invest in Dubai Property Sector:

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

• Higher Annual Rental Yields: Studies conducted by real-estate investment consulting firm, Global Property Guide also reveals that an average yearly return on Dubai properties is 5.19%. This is significantly higher compared to annual rental yields in New York (2.9%) London (2.7%), Singapore (2.5%), and Hong Kong (2.4%). With a rise in the real estate value post-Covid era, Dubai’s property market has much higher possibilities of even better returns.

• Lower Property prices per square meter: The property prices per sq. meter in Dubai are far lower compared to other international cities. According to the Global Property Guide, the cost per sq. meter for a 120 sq. meter apartment in Dubai is US $5,918 compared to Hong Kong (US $28,570), London (US$ 26,262) New York ($17,191) Tel Aviv ($17,149) Geneva ($16,467) Tokyo ($ 16,322), Paris ($15,867) & Berlin ($7,325). Even the cost of buying a house is much cheaper in Dubai compared to other international cities. According to research by Alliance Business Advisors – a prominent real-estate consulting firm, the average price of a home in Dubai is AED 1 million (US$ 272,000), compared to US$ 1.2 million in Hong Kong, US$ 1 Million in Munich, US $ 915,000 in Singapore, $ 650,555 in Paris, and $ 649,026 in New York, as per China Daily.

• Zero Property Tax: Properties in Dubai have a 0% tax on property purchase and filing income returns. The burden of the property tax rate in other countries is higher such as UK (2.53%) France (1.70 %), Greece (1.50 %) Iceland (1.48 %), and Italy (0.71 %) according to the International Tax Competitiveness Index (ITCI). Zero Property tax is another factor that makes Dubai a preferred choice for international investors.

• Safety: UAE is one of the safest regions in the world which makes Dubai a top choice to invest in. According to Gallup Law and Order Index 2020, the United Arab Emirates is the 4th safest country in the world compared to Germany (ranked 26^th) France (ranked 31^st) Japan (ranked 33^rd) US (ranked 36^th), and the UK (ranked 49^th).  In terms of Law and Order, UAE has been ranked 10^th globally in 2019 Gallup’s global Law and Order Index.

• Residency Visa: To make its real-estate sector attractive for global investors, the UAE government has rolled out new visa laws linked to property investment offering a quick path to residency (subject to certain conditions). 

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

The Imperative Role of Property Management Firms:

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

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

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

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

The Role of Compliance in the Success of PM Firm:

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

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

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

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

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

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

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

Demerits of Traditional Methods of Cooling on Environment

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

Some of the demerits of traditional methods of cooling are:

Excessive Water Consumption

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

Global Warming

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

High Power Consumption

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

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

Pollutes the Environment

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

The Use of Plastic is Detrimental

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

How Does District Cooling Overcome these Challenges?

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

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

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

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

Cost Difference: District Cooling vs Chiller Units

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

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

Here is the breakdown of District Cooling Charges:

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

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

Cost of Chiller charges: 

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

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

Where Does Dubai Stand in District Cooling?

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

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

Predictions

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

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

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

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

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

Regular Maintenance and Upgrades

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

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

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

Automation 

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

Submetering

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

Timely Monitoring of Energy Usage 

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

Energy Modeling Software to Track Energy Usage

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

Timely Reminder to the Tenants on their Energy Usage

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

Organizes Energy Management Studies

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

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

What is Efficacy Rate? 

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

Covid-19 Vaccines Available in the UAE:

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

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

Instructions for the Federal Employers & Employees:

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

The Economic Impact of Sinopharm on UAE:

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

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

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

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

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

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

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

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

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

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

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

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

Finalizing a property management company has never been a cakewalk. It is indeed a rigorous and careful process that requires evaluation of various important factors such as – cost, ROI, expertise, and above all capability and track record of the firm in handing over the keys to the investors on time. In the last few years, there has been an exponential increase in the number of new home handovers in the UAE. This has intensified the competition, with more companies offering handover services. Thus, it becomes more crucial than ever before to critically analyze their offerings and evaluate their strategy to mitigate any sort of property handover delays before selecting the right one.

Kaizen AMS ensures that you don’t regret your decision. We possess almost three-decades of experience in executing a smooth and swift handover process with complete protection of the property and better returns. Ensuring the property gets its best care and stays in good shape always remains the top agenda of our property managers.

What Makes the Handover Process Challenging?

The handover is quite simple and straightforward. However, in many cases, the momentous process of property handover becomes a headache for investors. The key villains are – ineffective management, limited support, and poor customer service offered by the developers. The complex procedures and hidden charges further make the handover norms more difficult to understand for the investors. Several property developers will simply send out the completion notice and demand investors for handover within a month or levy hefty risk penalties. This causes innumerable stress to the overseas investors and to those who have waited for years for the completion due to repeated delays in the construction process. The developers must have a well-defined process in place to minimize the challenges for the investors and avoid any delays in the construction process.

Top Reasons for the Delay:

The key factors responsible for the delay in the handover process are as follows:

Short-term Completion Notice

Once the building construction is completed and achieved the required certification, investors receive a 30-day notice of completion from the developer. During this period, investors are expected to clear all outstanding dues on the property price and other statutory fees to take possession of the unit as the new owners. Several other obligations are also required to be completed before the keys of the property are handed over. The process above looks alluring however it comes with a series of challenges for many investors. It is very frustrating for many investors who have waited for ages to reach this point and are now provided with merely 30 days’ time to stump up the final payments. It is not always easy for the overseas investors to make payments within this short period and also to come to Dubai to complete these final handover formalities. 

Pending Final Payments and Paperwork:

Along with the completion notice from the developer, the investor also receives a handover pack with key details on the completion date and the account statement. The account statement reflects the total amount paid to date as well as the amount due to take possession of the property. The percentage of final payment varies from developer to developer, however, the closing cost remains standard throughout. 

In most cases, the major cause of the delay in the handover process is the pending final payments and the paperwork from the investor’s side. To avoid handover delays, the investor should have paid all the required fees before the handover date of the project, and have submitted the relevant documents to the developer. 

Cancellation of the Project by RERA:

One of the biggest reasons for the delay in the handover process in Dubai is the cancellation of the project by the Real Estate Regulatory Authority (RERA). The projects are canceled by RERA when the land is affected by planning or re-planning projects. In that case, the projects are transferred to the liquidation committee and then to the Dubai Real Estate Court, which handles the settlement of rights and liquidation to purchasers. It is always advisable to check the status of the project timely on the Dubai Land Department website under the tab ‘Project Status’.

Heavy Penalties: 

This stage requires the investor to clear the final balance due on the purchase price of the property, as per the terms and conditions of the sales contract with the developer. Penalties are levied on the account and in case of non-payment by the investor, the developer has a right to apply to the Dubai Land Department for the termination of the unit, depending on the breach of the sales agreement with the investor. It is always advisable to make the payment within the deadline to not risk losing the unit.

Ways to Avoid Delays in the Handover Process:

There are several ways the investors and buyers can implement to minimize the risk of delayed property project handover. 

Conduct Proper Research about the Developer:

It is pivotal to conduct an in-depth and thorough research about the developer before planning to purchase the property. Potential Investors must research the developer’s track record of completing projects and handovers as per schedule. It is certainly wise to talk to other investors and visit the project site to get the real picture of the project. 

Check for the Developer’s Escrow Account: 

As per Law (8) of 2007, it is mandatory for all real estate developers in UAE to have an Escrow Account which is registered with Dubai Land Department (DLD) to sell off-plan units. The investor must ensure that the developer has an Escrow account by visiting the DLD website and searching for the relevant project. All the payments made by the investor to the developer must be deposited in the registered Escrow account.

Check for Necessary Permits:

Before starting dealing with the developer, an investor must ensure that the developer possesses all the requisite permits and approvals from Dubai Land Department to market and sell off-plan properties.

Thoroughly Review the Clauses in the Contract

The potential investor must thoroughly review all the clauses stated in the Sales & Purchase Agreement to protect his interest and rights under any unforeseen circumstances. Before signing the contract, it is important to review whether the developer has mentioned all the provisions and plans to manage any kind of handover delay in the contract.

Check for RERA’s Registration:

Potential investors must check whether the project and the developer are registered with the Real Estate Regulatory Agency (RERA) before investing. Mostly the developers which are registered with RERA have a great track record of completing the project handover on time. This information is readily available on the Dubai Land Department website.

The Secret Behind Swift Handover Process at Kaizen 

Kaizen recruits highly professional property inspection experts to carry out all the tasks associated with the handover process. They are highly trained in performing comprehensive checks of each property. Our property inspection experts offer prior notice to the developers on the expected completion date of the project. Post that, Kaizen’s handover team performs rigorous site visits at regular intervals subject to the first notice from the developer on the completion of the project. Later, our Developer & handover team collect information details of the project, client details, DEWA premise numbers & financial reports, and issue invoices to all clients with an outstanding balance. The team is also responsible for preparing the first communication with all clients and notifying them of the Building Completion Certificate (BCC) date. They also provide the expected handover date along with Service Oriented Architecture  (SOA). The Community and Owner’s association team is responsible for preparing clients’ service charge invoices and delivering them at the BCC date. Post that, guidelines are provided within a 30-day notice, and invoices are prepared and sent to clients. Subjected to testing and commissioning completion, the developers deactivate all units’ DEWA accounts. Lastly,, the handover team collects unit keys, access cards, remotes, etc. This process is not only systematic but very cost-effective too and also ensures that the handover process with Kaizen becomes a ‘memory to cherish’ for our investors.

It all started with a vision of one man, HH Sheikh Mohammed Bin Rashid Al Maktoum, vice president and prime minister of the UAE and ruler of Dubai, who wanted to make Dubai become the happiest city in the world.

A great leap forward from fishing and collecting pearls to be traded with other nations to engineering the happiest city in the world. Long ago, most Dubaiers used to live in houses made of corals with no water for sewers and electricity, However, Dubai now is indeed the pearl of the East and one of the world’s most favorable go-to places.

The culture of Dubai is a great mixture of beautiful Islamic and western styles. A metropolitan where the East and the West converge. The influence of Islamic and Arab culture on its architecture, music, attire, cuisine, and lifestyle are very prominent in the city. Everyone in Dubai is guaranteed a free-way living. A city that once was home for a single ethnically homogenous community has now transformed to become also home for other ethnic groups and nationals. If you’re in Dubai, you’ll have the chance to hear hundreds of languages with different dialects and accents, and you don’t have to travel anywhere to buy stuff. You can just buy it from Dubai Mall that has products from nearly 120 countries.

Visitors of Dubai can also enjoy very culturally-rich experiences. Especially after the launch of Dubai Culture that empowered many projects and initiatives as part of a great step forward to achieve the vision of the Dubai Strategic Plan 2021 that aims to boost Dubai’s stand as a cosmopolitan city for culture, arts, and literature. These initiatives and projects include Dubai International Arabic Calligraphy Exhibition, Visual Art Programme, the First cultural visa in the world and my favorite is the SIKKA Art Fair.

Another interesting aspect of Dubai Culture is the adoption of happiness and positivity approach. Thus, happiness programmes and initiatives were launched to spread joy among people. After a while, some surveys revealed that a surprising majority of Dubai residents said they feel happy and safe. In Dubai, you can see a police Happiness Patrol handing out rewards to law-abiding drivers instead of fines and tickets. People are asked to rate public services with emojis to reward good behaviors instead of punishing the bad.

The UAE is one of four national governments to appoint a senior government member responsible for coordinating national happiness efforts. Happiness in Dubai is a serious matter, especially after it became an increasingly preferred indicator for social progress by governments and global organizations such as the United Nations.  

In conclusion, happiness is an integral part of Dubai’s smart transformation. A smart and happy city that prioritizes happiness as a key objective, led by the Smart Dubai Office that oversees that transformation and utilizes innovative technology.     

Stop reading decorating magazines, it will only make you feel unsatisfied with how small your room is or how poorly your apartment was decorated. Instead, you can remodel, rebuild or redecorate your rooms with these three easy tips & tricks.

Utilize the dark side of the bed!

If you have a small apartment filled with clutter and stuff, your bedroom, especially your bed area is a great place to store things underneath. If you have an elevated bed or a platform bed, you can easily throw whatever stuff you want underneath it. And if you don’t have a bed like that, don’t worry, you can always get bed risers which give you additional space under your bed. You can then store things like suitcases, luggage or old boxes. You know, those suitcases and old boxes can also be used to store in them whatever junk you want to get rid of.

Build upwards … Take advantage of your vertical space.

Another trick is to use your vertical space to your advantage. You can have, for example, a huge wall gallery. If you enter someone’s apartment with a gallery on their wall, this gallery will immediately draw your eyes from the floor to the ceiling, because there’s a lot of stuff to look at. This tip works not only with small rooms but also with large ones too.   

Utilizing the vertical space also means building upwards, you know, like putting up a shelf. A simple shelf on a wall next to your bed means that you can keep favorite reads and books within easy reach, you can also display lots of catchy things like trinkets and book covers. Believe me, nothing could go wrong with a simple shelf. They are simply practical. Wall shelves could be installed everywhere in your apartment, and they can hold additional things like books, décor, knick-knacks and lots of stuff.

Shelves are my favorite. They can be installed above your TV or above your kitchen cabinets. If you think about it, there’s lots of room for using the space upwards.

Rearrange your room design.

If you’re bored with your room design and you can’t afford buying new furniture now, you can always ‘Feng Shui’ your room by moving furniture around. This will allow natural light to enter different corners of your room. Furniture can make your room look different and bigger for free. You can shop secondhand for an old wooden chair if you don’t already have one, dip it in bright red paint and see how beautiful it will look next to a bright set of chairs.  

You can do a lot of things with tips and techniques like these. If you put imagination to work, your options are limitless. Plus, DIY gives you satisfaction of being able to show off projects that you did yourselves. They even have a name for it. It’s called “The IKEA Effect”!