Indians, Pakistanis most interested in UAE property

Indians, Pakistanis most interested in UAE property

It is no surprise that in this article (see below) of ConstructionWeekonline, there is no hint anywhere that Indians, Pakistanis most interested in UAE property investments make up the most significant percentage of the populations of the respective GCC countries.

Since the advent of oil, the Persian Gulf countries have generally turned into modern states through concurrent processes of development.  Rapid population growth in the GCC states has been timed by 10 at least, in the space of few decades through primarily a natural growth in the influx of foreign workers and not through their indigenous population. 

It must also be noted that the same countries planning ahead are believed to be somehow facilitating investments of non nationals in any segment of their economies, presumably to counter all those consequences of oil peaking shortly and away from the Gulf region.

Of the top five most active nationalities on Dubizzle Property, the highest interest in the UAE property market came from Indian nationals, accounting for 22% of visits to the platform in 9M 2018. 

Indians and Pakistanis are most interested in UAE property investments, Dubizzle said [representational image].

Indians, Pakistanis most interested in UAE property investments

Nov 22, 2018

o EThis data echoes figures from Dubai Land Department (DLD), where Indian nationals accounted for more than 4,600 investments worth AED 8.6 billion in the first nine months of this year, representing the largest property investment segment in the UAE.

Pakistanis came in second with 14% of visits to dubizzle Property, followed by Egyptians (6 per cent), Jordanians (4 per cent) and UK nationals (4%).

Egyptians and Jordanians are the top Arab nationalities looking to invest in the UAE property market, according to dubizzle Property.

The two nationalities accounted for 10 per cent of property seekers on the platform in the first three quarters of the year.

This is in line with the figures recently revealed by the Dubai Land Department (DLD) concerning Dubai real estate transactions during the same period, where Jordanians were identified as the highest Arab investors with 644 investments by 548 investors, worth over AED 1.2 billion.  Egyptians recorded 719 transactions made by 623 investors, worth over AED 1 billion.

China, France, UAE, and KSA were among the top 20 most active users of the platform, which is also in line with the DLD’s list of top 10 investors by nationality that includes UAE, India, KSA, UK, Pakistan, China, Egypt, Jordan, and France.

“The current soft sales market has made the cost of property ownership more attractive versus the cost of rent, especially for those considering staying in Dubai for five years or more. Long-term expats are increasingly making the leap into ownership as declining prices are now making this investment possible,” commented Matthew Gregory, head of property sales at dubizzle Property.

 

RELATED ARTICLES: dubizzle reveals Abu Dhabi real estate trends in 2017 | UAE: Dubizzle reveals property trends for Q2 2015 | Dubizzle announces new authentification initaitive | Commercial property markets in Dubai and Abu Dhabi continue to struggle

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Today is World Cities Day 2018

Today is World Cities Day 2018

Today is World Cities Day 2018 and it is hosted by the city of Liverpool, UK and the event is being jointly organised with UN-Habitat and the Shanghai People’s Government.

The event is being attended by mayors, national and local government experts, representatives from global partnerships and coalitions and academics from Africa, Asia, Europe, Latin America, the Middle East, and the USA.  Panel sessions and seminars will give cities opportunities to exchange knowledge and best practices and focus international attention on sustainable urbanization.  

In the meantime, here is a picture of what is going on in the world.

UN-Habitat/Julius Mwelu Cities in developing countries like Nairobi in Kenya continue to grow rapidly.

 

Weekly migration of 1.4m to cities can contribute to ‘disasters’

 30 October 2018

 

Climate Change

The migration of some 1.4 million people every week to cities around the world “can strain local capacities, contributing to increased risk from natural and human made disasters’” according to the United Nations Secretary-General António Guterres.

In his message for World Cities Day, celebrated annually on 31 October, Mr. Guterres stressed that “hazards do not need to become disasters.”

“The answer is to build resilience – to storms, floods, earthquakes, fires, pandemics and economic crises,” he said.

Mr. Guterres explained that cities around the world are doing just that, forging new ways to increase resilience and sustainability.

The capital of Thailand, Bangkok has built vast underground water storage facilities to cope with increased flood risk and save water for drier periods.

In Quito, the capital of Ecuador in South America, local government has reclaimed or protected more than 200,000 hectares of land to boost flood protection, reduce erosion and safeguard the city’s freshwater supply and biodiversity.

The UN chief also indicated that the city of Johannesburg in South Africa “is involving residents in efforts to improve public spaces so they can be safely used for recreation, sports, community events and services such as free medical care.”

Risks

World Cities Day was established by the UN to promote the international community’s interest in global urbanization, push forward cooperation among countries in meeting opportunities and addressing challenges of urbanization, and contributing to sustainable urban development around the world.

Maimunah Mohd Sharif, Executive Director of the UN Human Settlements Programme (UN Habitat), flagged the importance of investing in resilience or face growing “economic, social, political and human” risks.

“It has been estimated that without action on climate change – which accounts for just one facet of resilience – some 77 million urban residents risk falling into poverty,” she warned, elaborating that human-made and environmental threats ranged from droughts, floods and fires to economic shocks, disease outbreaks, war and migration.

“Investing in resilience is a wise investment,” the UN Habitat chief said.

The theme of this year’s commemoration, Building Sustainable and Resilient Cities, focuses on the need to preserve human life and limit damage and destruction while continuing to provide infrastructure and services after a crisis.

A range of UN-backed international agreements, including the 2030 Agenda for Sustainable Development, the Paris Agreement on climate change, the Sendai Framework for Disaster Risk Reduction and the New Urban Agenda provide “a roadmap for a more sustainable and resilient world,” according to the UN Secretary-General. 

World Cities Day

United Kingdom: one largest investment source markets for Dubai?

United Kingdom: one largest investment source markets for Dubai?

United Kingdom: one largest investment source markets for Dubai? Well, this is what Live Trading’s Shayne Heffernan wrote this May 13, 2018.

Britons Spend Big on Dubai Real Estate

British nationals have invested US$8.47 billion (AED31.1 billion) in Dubai’s real estate during the last four years (2014-2017), according to the statistics released by Dubai Land Department, DLD. The United Kingdom is one of the largest investment source markets for Dubai’s real estate.

Following the Brexit vote in 2016 and subsequent move for separation from European Union by the British Government, Britain has witnessed a massive outflow of capital towards outbound investment.

“Sustained investor appetite for European real estate led to a 22 percent increase in volumes during 2017, with all European regions registering growth,” Jones Lang LaSalle, an investment management company, said in a latest report.

Besides, the sound regulatory environment and solid foreign investor protection makes Dubai an ideal market for investment for British investors and other foreign investors in Britain who want to invest their money in a more stable and higher-yield market and the UAE fits the bill.

A number of UAE property developers have tried to reach out to British home buyers and investors, by setting up offices and appointing brokers to promote Dubai’s real estate in the UK, especially in key cities of London, Manchester and other centres.

The International Real Estate and Investment Show, IREIS, is also set to bring the biggest international names in the real estate and investment industry to London with IREIS 2018 – UK Edition. To be held at one of the prime locations of London City “The Queen Elizabeth II Centre”, Westminister from 22nd-23rd June, 2018, the show serves as a one-stop shop for UK investors who are seeking for the perfect investment opportunities in the UAE.

Organised by DOME Exhibitions, the IREIS 2018 – UK Edition will host a spectrum of property developers, investment and real estate brokerage companies which will showcase the latest offers across the seven emirates and around the world.

“UAE thrives with its low tax environment, world-class infrastructure and 100 percent ownership prospects for foreign investors in selected zones, the UAE has rapidly risen as one of the most sought-after choice among foreign investors,” Antoine Georges, Managing Director of DOME Exhibitions, said.

“With the upcoming Expo 2020 Dubai ahead, the country is expected to possess such key drivers that will uphold a healthy outlook for the real estate market, further cementing its position as the top tourism and business hub in the world. Several government initiatives had also been launched to fast-track investors’ transactions within the country, with the Dubai Land Department reducing transaction period to 10 days.

“The UAE holds exactly what British investors look for in each venture: high quality real estate with a promising return on investment. This opportunity, combined with a prosperous economic growth and stability are vital drivers to the UAE’s increasing investors’ base.”https://graph.facebook.com/1049325618528820/picture?type=large

Britons Spend Big on Dubai Real Estate added by Shayne Heffernan on May 13, 2018
View all posts by Shayne Heffern

A First Comparison “Match” between Bouskoura and Darbouazza

A First Comparison “Match” between Bouskoura and Darbouazza

A study of 2 suburban districts of Casablanca, Morocco is believed to be a first comparison “Match” between Bouskoura and Darbouazza as recently undertaken by JUMIA House.

A report in French of the real estate analysis with graphics (see below) and comparative results was realised by Ranya S. Alaoui, Head of Communications & PR, Phone MA:0664604708, Skype ranya_alaoui, ranya.alaoui@jumia.com and released to the press together with a market analysis of JUMIA House General Manager Mr. Clément Tesconi on February 21st, 2017.

Here are below some excerpts of the report titled :

 

JUMIA House publishes a first comparison “Match” between Bouskoura and Darbouazza.

The main results of the study (see graphics and press release for more details) are in a nutshell :

More expensive purchase at Dar Bouazza than in Bouskoura;

Trends are reversed for renting, Bouskoura is more expensive;

According to our surveys, these two suburbs considered as “chic” are popular with people who want to get away from the city and invest in safe and more affordable real estate than those ‘premium’ neighbourhoods in Casablanca.

Why did we choose this subject?  The craze

JUMIA House wishes to put its expertise for the benefit of the Casablancan following the high-level of interest found within the platform.

Invest in Dar Bouazza or Bouskoura when trying to move away from the center of Casablanca? Rent or buy? And at what price?

  • Is it really cheaper than at the Center?
  • What is rather more expensive? How to decide?
  • A lot of Casablancans, whether couples, heads of families, or young single professionals who wish to settle only, are debating and / or considering their options.

In any case, it’s a topic that comes up in family meals, discussions of couples, or trips with friends.

Where do we get these figures?

The study was conducted on a representative sample of the population of Casablanca and is based on figures taken from our analytical expertise. This “match” proposes to offer to those wishing to invest in one or other of these posh suburbs an accurate and reliable comparison between the products and services available in the region. JUMIA House notes that prices are based on products marketed by estate agents, and that affordable homes are excluded from the study. For the sake of credibility, these prices were discussed with 6 agencies specializing in this segment.

JUMIA House, a subsidiary of the JUMIA Group, and whose vocation is to propose some relationship between supply and demand in real estate products, led the first comparative study in Morocco between Dar Bouazza and Bouskoura following the high-level of interest for either of these 2 districts of our platform. This study is intended for all those considering their settling in one or the other of these posh suburbs, be it under a lease or a purchase.

With this, JUMIA House wishes today to communicate to its customers some of its understanding of these markets.

JUMIA House notes that prices are based on products as currently marketed by estate agents and search of real estate in these districts continue to grow whereas some other neighbourhoods of Casablanca do stagnate (Maarif, Gauthier) or even decline (Racine, Bourgogne). As a result, JUMIA House wishes to propose to people currently in active research several items so as to allowing them to compare on several criteria such as price, facilities available, or above all accessibility.

Although the price of rent of the average square metre is higher at Dar Bouazza than that at Bouskoura, the trend is reversed if compared to the purchase price of the same square meter. According to several surveys made by JUMIA House, these two suburbs considered “chic” are mainly popular with people wishing to get away from the town centre through investment in estates in its nearest suburban developments. This was substantiated by surveys, conducted on a sample of 804 people resident in Casablanca, that showed that the urban ultras would be ready to move away from the present downtown in order to avoid the transport time inherent to their way of life (62% of respondents said they wish to leave the city center of Casablanca).

To invest in Dar Bouazza or Bouskoura would also enable them to avoid the already dense towncentre, since these two areas not only semi-detached or detached villas with land plots are offered but also studios, apartments or even duplexes in most importantly less dense environments. The two districts also offer at their respective centres recreational facilities but still near residences, as well as facilities in continuous improvement. Half of our sample appreciate Dar Bouazza as a more appropriate choice for investors than Bouskoura, although two-thirds (68%) say they currently lack information to wisely make their decisions.

Through this study, JUMIA House aims therefore to answer certain questions.

Purchase : Dar Bouazza more expensive than Bouskoura a comparison of the price of the purchase by the square meter shows that apartments are more expensive in Dar Bouazza, whereas prices are established in MAD9,379 per square meter, that in Bouskoura, which is around MAD5,341/m². Prices for the villas lie as well around MAD14,252/m² at Dar Bouazza against MAD13,067/m² at Bouksoura. The price of real estate in these posh suburbs is considerably less than premium downtown neighbourhoods that may exceed for apartments MAD19,000 in Gauthier, or even MAD20,000 in Racine per meter square.

Renting : the trends are inversed as unlike buying, the average rent per square meter of apartments in Bouskoura is more expensive than in Dar Bouazza, which at MAD75/m², a 100 m² apartment is trading around MAD7,000 against MAD67/m² at Dar Bouazza  in Premium Gauthier or Racine neighbourhoods are at around MAD100/m²).

Moreover, the average rent per square metre of the villas at Bouskoura costs MAD51/m² against MAD39/m² at Dar Bouazza. This can easily be explained by a more abundant supply in Dar Bouazza, stretching along the coast, but also by the preponderance of designer houses in Bouskoura, rarer in Dar Bouazza, where new real estate represents a very large part of the supply.

Bouskoura vs. Dar Bouazza: Green Life vs Beach Life.

Two styles of life; in recent years, Dar Bouazza and Bouskoura have emerged as of the most popular destinations in Casablanca. Located respectively at 21 and 22 kilometres from Casablanca town centre, these two districts offer a quieter and more secure environment than that of the economic capital.

Bouskoura is ideally located at the edge of a 3,000 hectares wooded area that is ideal for a Sunday walk. Dar Bouazza, on the Atlantic with its 10 km of coastal road stretch has a resort and an aquatic Center.

The analysis of Clement Tesconi, GM, found that :

“The real estate sector has been “sluggish” and after the recent flat patch, we now are seeing a mutation in demand and supply.

Demand dropped in the town centre neighbourhoods in full gentrification as Casablanca urban supply, at least in its inner parts is gradually moving now towards exclusive high-quality range, preventing access to property for a large part of the population.

Land, that is increasingly sought by professionals and the development of Casablanca as a major economic centre and among other things through Casa Finance City, tend help accelerate this transformation.

Dar Bouazza, a golden spot and already fairly well served and Bouskoura, with the near completion of the cable car of Sidi Maarouf, whose first phase should be completed before the end of year 2017, would lead to believe that these two posh suburbs have many years of prosperity real estate ahead of them!”

JUMIA House Morocco is an international real estate portal dedicated exclusively to emerging countries. The platform allows users to buy, rent and sell with ease and in safety. JUMIA House was launched in January 2014, and offers more than 50,000 ads in Morocco. JUMIA House, part of JUMIA Group, is African first group website.

 

NB : the average income in Casablanca stands at MAD6,000 net for workers affiliated to the CNSS, and MAD11,000 for those CIMR affiliated employees, although these average wages do not reflect the reality of the informal sector wages.

 

Building completions are at a 10-year low in the UAE

Building completions are at a 10-year low in the UAE

Abu Dhabi buildings construction completion totals down in 2016.

Building completions are at a 10-year low in the UAE generally, particularly more so in Abu Dhabi.  It is according to Property consultants Jones Lang LaSalle (JLL)’s latest Abu Dhabi Real Estate Oveview report, due to the current conjecture of cautious developers, tightened liquidity and new building and environment regulations.  This new report has also revealed that smaller scale developments are being phased away over time.

JLL report says Abu Dhabi, while remaining relatively stable in the third quarter, is showing increased signs of caution with a slow-down in government domestic spending, reduction in transaction volumes and investor sentiment, according their new market review.

JLL said that due to a reduction in government spending, it expects future residential rental demand in the capital city to be affected, and to possibly directly impacting the oil sector and indirectly affecting other sectors as well.

Khaleej Times of October 2015 reported 6 months after oil prices crushed down that “The UAE government plans to cut spending, leading to job cuts and cost controls in government entities and . . . delay the commencement of new mega projects.  Further increases to cost of living (through the removal of utilities and fuel subsidies combined with further potential measures such as the introduction of taxes, etc. may further impact future end-user demand.”

More recently, JLL said in its Real Estate Market Overview found that overall, Abu Dhabi’s real estate markets have generally been stable during the first quarter of 2016 despite the continued impact of lower oil prices related revenues and a reduction in domestic government spending.

The resulting current situation is, while demand has been reducing, supply completions have also been doing the same, i.e. thus reducing as well, leading to some relatively stable market conditions.

In fact, the real estate market in the UAE of 2016 is slowing down compared to its significant growth in 2013 and the first half of 2014, as per to this latest JLL report on the UAE.

Moreover, JLL expected that completion rates of residential buildings projects in 2016 to remain lower than in recent years. The materialisation rate of projects in 2015 was below expectations, with only 1,000 units delivered, compared to 7,800 delivered units in Dubai that year.

A low level of sales in the UAE has delayed the handover deadlines for projects in late 2016 and 2017, according to the report.

In the meantime, and apart from the above, expatriate tenants in Abu Dhabi will have to pay a 3% extra on their rent, as a municipality contract fee, a new charge that will be collected with monthly electricity and water bills.  UAE nationals are exempt.