“There is an oversupply but a lot of negativity around it has already been priced in asset values. If you look at 2022, 2023 and 2024, a lot of private developers have stopped developing. And the government developers have created a very interesting incentives. The negativity is already priced in today’s market, so, this is a good entry point,” said Abdullah Al Ajaji, founder and managing director, Driven Properties.
Highlighting the benefits of mega events like expos, he pointed out that property prices went up three times in Shanghai in six years from 2010 to 2016 after Shanghai Expo was held nine years ago.
He said events like Expo 2020 will result in an increase in population and create more business opportunities. “I think expo will be a great event, resulting in population growth and there will be more positivity,” Al Ajaji said during a panel discussion hosted by property portal Bayut for the brokerage community and executives from the real estate industry.
Dounia Fadi, chief executive officer, MD Properties, stated that all the focus of developers is to delivering projects till 2020.
“Developers are not launching beyond 2021-22. Right now, all the focus is on Dubai Expo 2020 so we have to wait and see what visionary ideas the leadership has and only then the developers will take their further decision,” Fadi told Khaleej Times on the sidelines of the conference.
She noted that prices have almost bottomed out. But this year’s oversupply will be almost similar to last year’s, which will affect prices and the rates will decline further. It is estimated that around 16,000 to 20,000 units will come online this year, almost same as last year.
Dr Mahmoud Al Burai, senior advisor, Real Estate Regulatory Authority (Rera), said Dubai is the more affordable and the most transparent market in the region.
“Real estate may get sick but it will never die. We get hiccups in the real estate but it is part of a cycle. We are resilient. We will slow down but will emerge stronger,” said Al Burai, who is also vice-president of International Real Estate Federation, Arabic Countries.
While giving a presentation at the forum, he noted that the government is working on long-term — Supplied photo
incentives, talent magnet, quality of life, urban planning, transparency, investor protection, cost competitiveness.
He also advised property investors to focus on new markets due to dynamics like stronger dollar making the local market expensive for traditional buyers markets of India and Pakistan. “Our traditional market’s currencies have weakened so we need to focus at different investors,” he said.
“Technology is the way forward and it will impact the way we buy, sell, rent, design, construct and manage real estate,” he added.
Farhan Qureshi, country manager for Frontier Markets at Google; Haider Ali Khan, CEO, Bayut; and Elaine Jones, executive chairman of Asteco Property Management, also addressed the Bayut Big Broker Event 2019.
“We take pride in solving local problems, whether it is penetrating every emirate in the UAE with equal efficiency or creating assets to best serve the needs of the local population,” said Haider Ali Khan, Bayut’s CEO.
“Our effort has always been to know the pulse of the people and work towards improving their lives in this digital age,” he said.
Disruption is coming
While highlighting the role of brokers, Abdullah Al Ajaji of Driven Properties stressed that disruption is coming to this market as technology cannot replace bankers and lawyers. Similarly, AI and other new-age cannot replace the brokers.
He emphasised that embracing new technologies and work ethics are the most important role of the broker’s jobs, going forward.
Alessia Sheglova, managing director, Dacha Real Estate, pointed out that there is still so much business to do in Dubai, hence, their focus will remain on strengthening local presence.
Firas Al Msaddi, CEO, FAM Properties, urged the brokerage houses in Dubai to cash in on the data, which is the new oil. He also called for higher level of transparency that is essential for the market.
“Some agents don’t have what it takes to confront the client with reality and show what the opportunities are. This market is full of opportunities,” he added.
The one-day educational summit brought together industry leaders, key decision makers and councillors to spearhead a discussion on evolving trends in the property market and ways to overcome challenges using technology and other innovations.
Dubai is the more affordable and the most transparent market in the region
Dr Mahmoud Al Burai, Senior advisor at Real Estate Regulatory Authority
Our effort has always been to know the pulse of the people and work towards improving their lives in this digital age Haider Ali Khan, Chief Executive Officer at Bayut