Tag: real estate

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Dubai

Dubai real estate sales reach new records in July

The value of monthly sales during July 2022 recorded an increase of about 44% on an annual basis compared to July 2021, which exceeded Dhs11bn, resulted from 4,414 real estate deals…reports Asian Lite News

“W Capital Real Estate Brokerage” report assessed the strong momentum and exceptional performance of the real estate market in the Emirate of Dubai, in the first seven months of 2022, exceeding Dhs130bn,with 48.000 transactions, thus making the largest sales value ever during that period, according to the latest data issued by the DLD.

The value of real estate units sold in Dubai for the period from January 1 to July 31 of each year exceeds Dhs100bn for the second time .The first time was in July 2009 when real estate sales recorded a value of about Dhs103bn.

The month of July 2022 ,also recorded the highest total value of real estate sales deals in the Emirate of Dubai, with a value of more than Dhs16bn, a result of about 5,359 deals, which is the highest value ever for the month of July, followed by monthly sales of Dhs15.4bn in 2009.

The value of monthly sales during July 2022 recorded an increase of about 44% on an annual basis compared to July 2021, which exceeded Dhs11bn, resulted from 4,414 real estate deals.

Walid Al Zarooni, Chairman of W Capital, said that the real estate sector in Dubai continues to break records in terms of sales and transactions time after time, which is a strong indication of the continued momentum and exceptional performance that started since late last year, and a strong evidence of Dubai real estate market attracting more investments.

Al Zarooni said that the real estate market has recorded unprecedented performance since the beginning of this year, amid record growth in demand driven by a number of positive factors. The expert’s expectations for positive indicators to continue so as to achieve steady growth in real estate sales to exceed Dhs230bn by the end of the year.

Walid Al Zarooni pointed out that this strong performance of the real estate market in recent months is due to foreign investors in light of the increasing demand, the high real estate prices and the high return on investment by a large percentage that encouraged the influx of foreign individuals to buy thanks to the stimulating measures, unlimited support and quality initiatives launched by the Dubai government recently. These included the policies supporting expatriates, the new residency rules, and the residence of entrepreneurs and investors, which contributed to strengthening Dubai’s position at the forefront of global destinations as the best place to live, work and invest.

Al Zarooni pointed out that the Dubai Expo 2020, event ending late March, had the greatest impact in promoting the good investment and residence in Dubai and increased the demand for buying real estate units.

He revealed that the real estate market in Dubai has witnessed a radical change, especially in the past few years that witnessed a remarkable shift in investments, as attracted foreign investors and capitals after it was focused on local investors. There was significant increase in the sale of luxury and distinctive properties in conjunction with the increase in the investments of owners wealth, high income, thanks to the presence of advanced infrastructure along with a distinguished lifestyle that includes the best hotels and restaurants in the world and the exceptional amenities Dubai offers, which made it the best destination for work, live and invest.

ALSO READ-Chinese developer defaults, deals new blow to ailing real estate

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-Top News China

Chinese developer defaults, deals new blow to ailing real estate

It is the first missed debt repayment on a dollar bond by Shimao, which has been grappling with mounting financial stress for months…reports Asian Lite News

Another major Chinese developer has defaulted on its debt, dealing a new blow to the ailing real estate sector in the world’s second largest economy, media reports said.

Shanghai-based Shimao Group failed to pay the interest and principal on a $1 billion bond due Sunday, according to a company filing to the Hong Kong stock exchange, CNN reported.

The bond had no grace period for the principal, according to its offering document.

It is the first missed debt repayment on a dollar bond by Shimao, which has been grappling with mounting financial stress for months.

China’s real estate sector has been lurching from one crisis to another since 2020, when Beijing started cracking down on excessive borrowings by developers in a bid to rein in their high debt and curb runaway housing prices, CNN reported.

The problems escalated significantly last fall when Evergrande — the second largest property developer in China — began scrambling to raise cash to repay lenders. The embattled firm is China’s most indebted property developer with some $300 billion in liabilities. It was labeled a defaulter by Fitch Ratings in December.

According to Moody’s estimates earlier this year, Shimao Group has a large amount of debt maturing in 2022, including $1.7 billion worth of bonds held by international investors, 8.9 billion yuan ($1.4 billion) worth of bonds held by Chinese investors, and “sizable” offshore bank loans, CNN reported.

Founded by entrepreneur Hui Wing Mau in 2001, Shimao develops large-scale residential projects and hotels across the country. It owns Shanghai Shimao International Plaza, one of the tallest skyscrapers located in the heart of Shanghai.

In March, the company estimated that its 2021 net profit had plunged about 62% from a year earlier, mainly because of the “harsh” environment facing the property sector. It then delayed the release of its 2021 results, citing the lockdowns in Shanghai.

“Due to the significant changes to the macro environment of the property sector in China since the second half of 2021 and the impact of Covid-19, the Group has experienced a noticeable decline in its contracted sales in recent months, which is expected to continue in the near term until the property sector in China stabilizes,” Shimao said in the filing on Sunday.

Since Evergrande’s insolvency, a series of high-profile developers in the country have defaulted on their debts, including Fantasia and Kaisa, CNN reported.

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Business Dubai

Dubai records AED 8 billion of weeklong real estate transactions

The sum of the amount of mortgaged properties for the week was AED 2.73 billion. 77 properties were granted between first-degree relatives worth AED 151 million…reports Asian Lite News

Dubai has recorded 2,624 real estate and properties transactions at a value of AED 8 billion in total during the week ending 24th June 2022.

The DLD report said that 274 plots were sold for AED 1.15 billion, while apartment and villa sales totalled 1,757 at a value AED 4 billion.

The top three transactions were a land in Palm Jumeirah sold for AED 126.25 million, followed by a land that was sold for AED 52.53 million in Al Thanayah Fourth, and a land sold for AED 26 million in Umm Suqeim Third.

Al Hebiah Fifth recorded the most transactions for this week with 154 sales transactions worth AED 333.49 million, followed by Jabal Ali First with 29 sales transactions worth AED 88.95 million, and Al Merkadh with 17 sales transactions worth AED 130 million in third place.

Meanwhile, Burj Khalifa came in first in terms of number of transfers for apartments and villas recording 223 transactions worth AED 632 million, with Marsa Dubai ranking second with 173 transactions worth AED 527 million, and Al Jaddaf in third with 151 transactions worth AED 203 million.

The sum of the amount of mortgaged properties for the week was AED 2.73 billion. 77 properties were granted between first-degree relatives worth AED 151 million.

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Dubai Qatar

Dubai’s thriving branded residences market now a global leader

The real estate market in Dubai continues to perform fantastically well in 2022…reports Asian Lite News

Following a record-breaking post-lockdown year in 2021, the real estate market in Dubai continues to perform fantastically well in 2022, especially in the prime and super-prime markets, within which Dubai’s branded residential development sector continues to flourish, as the emirate’s love affair with branded residential real estate continues.

Dean Foley – Head of Residential Project Sales & Marketing at Knight Frank Middle East commented “Residential development across the emirate has flourished since 2010 with the Armani Residences Burj Khalifa first in the market – since then, we have seen an explosion of this asset class with strong demand from HNW and UHNW buyers from across the globe. Such has been the rate of expansion that Dubai is now a global leader rivalling Miami and New York for completed and pipeline projects. Over the last 12 months, we’ve seen launches from Four Seasons, The Ritz-Carlton, St. Regis, W and Six Senses, cementing Dubai’s popularity and boosting confidence with hotel operators, developers, owners and buyers.

In Knight Frank’s recently published Branded Residential Overview Dubai 2022, they have investigated 6 key trends that are helping to shape the emirates love affair with branded residential property.

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1. Dubai one of the top three branded residential markets globally

Dubai has evolved to become a key global hub for branded residences in the last 10 years, however the US, led by Miami, continues to have the highest concentration globally. In Dubai we now have two clear concentrations of branded residential property: Central Dubai (stretching outward from Downtown Dubai, along Dubai Canal and out to Jumeirah 1) and New Dubai, encompassing The Palm Jumeirah, Dubai Marina and Jumeirah Lake Towers.

2. Developers widening the net to attract new buyers and investors

There has been a strong shift towards creating more investment grade product, alongside traditional branded residences that appeal to global UHNWI clientele, with Developers recognising the investment potential in branded residential products.

3. Lifestyle brands making their mark

Historically, brands such as Four Seasons and Mandarin Oriental, along with other established brands under Marriott and Accor have dominated the branded residential market landscape, but more recently, the likes of Porche, Bvlgari, Cavalli and Elie Saab, all of which have swathes of fiercely loyal followers have joined the race to provide ultra-luxury branded residential homes.

4. “New” branded residential neighbourhoods

Downtown Dubai and The Palm Jumeirah have very limited development opportunities, which is driving developers to look to the peripheries of these locations. As the Dubai market continues to evolve and mature, operators are moving into areas such as Business Bay, where Missoni, Mama Shelter, Pagani and the Dorchester Collection are all establishing a presence. Indeed, the arrival of these prestigious brands has contributed to the overall increase in residential demand in Business Bay, which recently joined the exclusive $10 million home club in Dubai, as we reported previously.

5. Fully integrated service offering to remain a top client attraction

Privacy and security have always been key factors for buyers, but a fully integrated service offering, complete with a personalised concierge service in a landmark setting, offered by a reputed brand is what buyers at the top end of the market continue to actively seek out and are happy to pay a premium for.

6. Buyers hungry for more

Globally, buyers are taking a closer look at their living arrangements in the wake of the pandemic and when it comes to the branded residential market, buyers and investors are hungry for even more luxurious amenities and lifestyle offerings that are driving the emergence of some of the world’s most exciting branded residential developments in cities such as Dubai –

Dean continued “The Covid-19 pandemic brought about an increased sensitivity to space, investment and safety. For the global elite, branded residences provides large and opulently serviced homes under the strength and expert care of a leading luxury brand, in addition, the UAE Government acted with laser guided efficiency to ensure disruption was kept to a minimum, its population vaccinated and its economy open for business – these three pillars are what’s largely driven the branded real estate landscape over the last 12 months.”

Knight Frank Middle East’s own Residential Project Sales & Marketing team is spearheaded by Dean Foley, who since joining the firm in Q3 2021, has focused on providing clients with a more comprehensive advisory service to optimise projects at concept stage as well as expanding the company’s sales and marketing capability significantly, with even more growth expected. Dean himself is a veteran of the branded real estate development market, having over 12 years experience in helping developers realise their project goals and maximising returns to fund large scale mixed-use projects, working across Europe, The Middle East, The Caribbean, Africa and Asia on branded projects under Four Seasons, Fairmont, Raffles, Viceroy and Marriott.

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Business India News

‘Commercial real estate segments showed growth after hiatus of Covid 19’

Sentiments in the real estate sector have remained optimistic and touched new highs, as per the survey ‘Real Estate Sentiment Index Q1 2022’ conducted by the two entities…reports Asian Lite News

The Current Sentiment Index of real estate industry stakeholders, compiled after a survey conducted by Knight Frank and NAREDCO, rides high on the back of real sustainable home buying demand, and low interest rate galvanising underpinned value of ownership home for end-users and renewed investor interest, said Niranjan Hiranandani, Vice Chairman of NAREDCO, and Founder-cum-Managing Director of Hiranandani Group.

“While the present scenario seems to be in a positive light, the future sentiment reflects cautious optimism across industry stakeholders in the wake of global unrest and domestic headwinds. Soaring raw material costs resulting in escalated input costs, record high crude oil price pegged to swing in between $90-$110, anticipated hike in US Fed interest rate, geo-political turmoil, withdrawal of stamp duty waiver, levy of additional 1 per cent metro cess in the backdrop of hiked ready reckoner rates are the challenges to be unfurled in the marketplace,” Hiranandani said.

Sentiments in the real estate sector have remained optimistic and touched new highs, as per the survey ‘Real Estate Sentiment Index Q1 2022’ conducted by the two entities.

The flagship survey, which is in its 32nd edition, conducted quarterly by Knight Frank India and National Real Estate Development Council (NAREDCO), noted that the current sentiment soared to a new high of 68 — indicating that most stakeholders experienced positive developments in their businesses in the last six months, including the period of the survey.

Importantly, the future sentiment score recorded at 75 was is at its historical best, in view of a resolute economic outlook and continued demand for real estate space across asset classes.

The removal of all Covid-19 restrictions by the government has boosted the sentiments further.

The current sentiment score increased from 65 in Q4 2021 to 68 in Q1 2022 as the last six months remained positive for growth for most real estate stakeholders.

As the Indian economy navigated the third wave whilev being faced by uncertainty of a war in Europe, the real estate sector momentum remained unabated, especially of the residential segment.

Commercial real estate segments also showed growth after the hiatus of the pandemic. While the sentiments have been positive for the two previous quarters, this score is one of the best reached in the history of the flagship survey.

When asked about the economic outlook for India during the survey, 85 per cent of the respondents expect the overall economic momentum to improve over the next six months.

In terms of credit availability outlook, 66 per cent of the respondents expect the funding availability to increase over the next six months, while 29 per cent expect it to remain the same during the period.

ALSO READ-Basant Bansal enters elite club of top real estate developers

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Business India News

Basant Bansal enters elite club of top real estate developers

Basant Bansal and family also ranked first in Gurugram and second in Delhi, as per city-wise ranking…reports Asian Lite News

With a wealth of Rs 17,250 crore, Basant Bansal and family of M3M India entered into the elite club of top 10 real estate developers in India, as per the GROHE-HURUN India Real Estate Rich List 2021.

With 75 per cent growth in wealth, Basant Bansal and family gained eight spots and to be ranked seventh in the list.

Basant Bansal and family also ranked first in Gurugram and second in Delhi, as per city-wise ranking.

Known for premium and luxury housing projects, M3M India’s Basant Bansal has also been ranked fourth in the categories of ‘Top Property Developers with a focus on Premium Housing’, and ‘Top Residential Property Developers in India’.

Going by numbers, 61 per cent of entrepreneurs featured in the real estate developers list by HURUN in the category of Top 10 self-made individuals, Basant Bansal and family has been ranked fourth. Not only this, the company has been ranked eleventh in the ‘Veterans & Young Companies’ category.

Pankaj Bansal, Director, M3M India, the son of Basant Bansal, has also made his debut in the list of second generation entrepreneurs and is ranked fifth in second generation ‘Movers and Shakers’ category.

As per the GROHE-HURUN India Real Estate Rich List 2021, the top 10 wealth creators are:

1. Rajiv Singh of DLF with a wealth of Rs 61,220 crore

2. Mangal Prabhat Lodha & family of Macrotech Developers with a wealth of Rs 52,970 crore

3. Chandru Raheja & family of K. Raheja with a wealth of Rs 26,290 crore

4. Jitendra Virwani of Embassy Office Parks with a wealth of Rs 23,620 crore

5. Vikas Oberoi of Oberoi Realty with a wealth of Rs 22,780 crore

6. Niranjan Hiranandani of Hiranandani Communities with a wealth of Rs 22,250 crore

7. Basant Bansal & family of M3M India with a wealth of Rs 17,250 crore

8. Raja Bagmane of Bagmane Developers with a wealth of Rs 16,730 crore

9. G. Amarender Reddy & family of GAR Corporation with a wealth of Rs 15,000 crore

10. Subhash Runwal & family of Runwal Developers with a wealth of Rs 11,400 crore

The fifth edition of GROHE-HURUN India Real Estate Rich List 2021 is a ranking of the most successful real estate entrepreneurs and inheritors in India, ranked by net worth proportionate to their ownership in their respective real estate businesses.

The GROHE-HURUN India Real Estate Rich List 2021 ranked 100 individuals from 71 companies and 14 cities.

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Business India News

AI to overhaul Indian real estate sector

Adoption of AI and ML in real-estate sector will also help government housing projects, particularly the 100 smart city projects across India…reports Asian Lite News

 The current global crisis due to rising Omicron and Covid cases is also pushing both developers and customers to go for online booking of retail and residential spaces.

This would eventually compel the arrival of Artificial Intelligence (AI) and Machine Learning (ML) in the Indian real-estate sector. As of now, the real-estate sector remains in the early stages of deploying AI or ML in retail as well as residential sector.

Pankaj Bansal, Director of M3M India, is an aggressive new age real-estate developer in India. M3M India itself is the largest developer of retail space in North India by delivering over 4 million square feet of retail space and 20 million square feet of overall space in one of the most promising growth areas of Gurugram.

M3M India is aggressively looking forward to the advent of AI and ML in realty in India, beginning 2022.

“Speaking from a developer’s point of view, we expect an extremely intelligent technology that addresses all the concerns and needs of developers and consumers. It should be able to suggest hundreds and thousands of designs and construction options. As a developer, we would like to know sun light, Vastu, wind direction, carpet area etc. before we conceive or design a project for customers. Once the projects are of the liking of customers, selling will never be an issue.

“We are also looking forward to a technology, be it is AI or ML, which can do multiple micro checks in design and construction both. It should be able to analyse, evaluate and suggest doable solutions. And we see this without any human intervention, Bansal said.

“Few well-known developers in some parts of the developed world have used AI to give an extremely unexpected look, feel and experience in select private houses. AI in these houses has virtually eliminated human intervention and has taken over the complete control of all the amenities and facilities” he added.

Research reports suggest that AI is also able to support the analysis by studying market preferences. A very important advantage that comes with the use of AI algorithms is that it can be adapted to reflect special market segments and it can also be automatically retrained and adjusted to include new information.

“It is true. As M3M India is also expanding the business, we would want our customers and investors to have smart information about our projects and deeper knowledge of overall real-estate sector, and most importantly, how the assets they have purchased or likely to purchase, are expected to give returns in near future and in the long run,” Bansal said.

Most of the individuals and institutions also take loans to buy an asset and timely possession becomes a critical factor.

Pankaj Bansal, Director of M3M India

“When you have history, reputation and structural information of the project developer at your access, and if you are convinced about the real-timeline of the delivery of the projects; you would certainly try to look into many easy loan repayment options,” Bansal said.

Looking from the real-estate developer perspective, AI and ML will become prominent tools for lead generation for a developer. AI-enabled programmes would capture consumer information for e-commerce business development and in addition help improve leadership and marketing strategies through machine learning environments.

Adoption of AI and ML in real-estate sector will also help government housing projects, particularly the 100 smart city projects across India.

When the real-estate sector is looking forward to contribute 13 per cent to India’s GDP by 2025 and reach a market size of $1 trillion by 2030, how AI and ML will be aligned in this vision is yet to seen.

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Dubai UAE News

Dubai real estate transactions hit AED92 bn

The bulletin revealed that the real estate sector in the emirate will continue to attract more real estate investors, thanks to its strong infrastructure and attractive investment opportunities…reports Asian Lite News

Dubai has registered 25,455 real estate transactions worth AED92 billion from January – April 2021, thus achieving an increase of 51 percent in terms of the number of transactions and 72 percent in terms of their value compared to the same period in 2020.

According to the real estate bulletin issued by Dubai Land Department (DLD) under the name ‘Real Estate Updates,’ the real estate sector showed robustness and an ability to adapt to various circumstances and developments.

The bulletin revealed that the real estate sector in the emirate will continue to attract more real estate investors, thanks to its strong infrastructure and attractive investment opportunities. 8,749 new investors entered the market from January – April 2021, representing 65 percent of the total number of real estate investors registered in that period, with a growth of 54 percent compared to the same period in 2020.

The bulletin also showed that the total value of real estate investments during the aforementioned period reached AED36 billion, an increase of 44 percent compared to the same period in 2020. This confirms the continued flow of real estate investments since the beginning of the year at a high rate, which also strengthens the trust of local and international investors alike.

187,949 Ejari contracts were recorded in January – April 2021, 58 percent of which were new contracts and 42 percent were renewed contracts.

The bulletin highlighted the top five areas for investor attractiveness. In villa sales, Hadaeq Sheikh Mohammed Bin Rashid topped the list in April 2021, followed by Palm Jumeirah, Wadi Al Safa 5, Wadi Al Safa 7, and Al Yelayiss 2. In apartment sales, Dubai Marina, Burj Khalifa, Palm Jumeirah, Business Bay, and Al Thanyah Fifth topped the list in April 2021.

It is expected that the real estate sector will witness increased growth and a greater recovery in the coming period following the permission of Dubai’s Supreme Committee of Crisis and Disaster Management to submit electronic permit applications for business activities of all kinds, in addition to the fast-approaching date of Expo 2020, which in turn will attract tourists and visitors from around the world and will constitute a great opportunity for the real estate sector to strengthen its position regionally and globally.

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