SPaaS – Revolutionizing the Future of Commercial Real Estate Sector

The space-as-a-service (SPaaS) is bringing structural changes to the commercial real estate industry in the UAE. There has been a paradigm shift in the operations of commercial real estate with the introduction of SPaaS. Space-as-a-service has completely revolutionized the way the commercial real estate sector used to offer services to tenants and taken off a load of rent collection from commercial landlords by fully automating the process. This will certainly increase the focus of landlords on investing more time in improving the services.

Some of the live examples of the SPaaS model are co-living, co-working, and retail wherein the landlord offers a catalog of services to tenants which allows them to effectively utilize the space. It involves almost every service a tenant needs to live a comfortable lifestyle such as fixtures, digital connectivity, staffing for operating and managing services, and furniture. The best example of the success of space-as-a-service (SPaaS) in commercial office space is WeWork – the largest commercial real estate firm that offers shared workspaces to tech. and service startups, and other enterprises. WeWork has automated all necessary functions of the office such as space form and function, lease terms, etc., and has reshaped the process of operating office spaces similar to hotels. WeWork’s business model has encouraged landlords to follow the conventional methods of operating the office to implement it. They are now briskly competing for SPaaS enterprise tenants.

What is Space-as-a-service (SPaaS)?

Space-as-a-service refers to space which is purchased on demand for a specific duration. It also means the workplace procured to provide the desired space and services required to get the job done for every individual whenever required. Space-as-a-service is the need of every organization interested in attracting, retaining, and producing highly skilled employees.

SPaaS has a far-reaching effect on the commercial real estate sector. It can bring transformation to each aspect of the real estate model, right from asset ownership to monetization of access and services including physical space. The concept of SPaaS facilitates a change in management beliefs about the design and reshape the work culture to one which improves the productivity and experiences within a firm’s real estate portfolio.

Growth Drivers

Space-as-a-service is the result of a series of technology-enabled structural changes in the commercial real estate (CRE) marketplace. Technology is playing a pivotal role in revolutionizing the way the corporate sector operates and its employees work. High-speed connectivity has been the biggest growth driver in the rise of SPaaS. The proliferation of emerging technologies such as the Cloud, Artificial Intelligence (AI), IoT sensors has made it possible to connect almost everything to the internet. Robotics have completely changed the manner in which the corporate sector and its workforce occupy and use the space. Furthermore, the rising penetration of smartphones, laptops, and tablets have also been a catalyst in accelerating the pace of Space-as-a-service.

The Changing Landscape of Office Space Occupancy

The concept of traditional office space is being replaced by hub space, home office space, central headquarters, serviced office, client office space, and co-working office space. All these methods of occupying the office space are not mutually exclusive. Several UAE-based real-estate and property management firms are using all or most of these ways to occupy the office space based on their requirements.

Space-as-a-service is of paramount importance to the real estate sector. It allows them to maximize the utilization of the space and ensure leased and owned assets are effectively utilized and unused or underperforming assets are removed. SPaaS facilitates smart investment through effective execution of space acquisition, design, or lease updates. This has a positive impact on the net present value, return on investment (ROI), and overall business performance of the real estate firm.

Space-as-a-service also fosters the speed to market of the space through portfolio modifications to minimize disruptions and reap the benefits of smart strategy. It also reduces the liability of the real estate firm by facilitating the scientific designing of office facilities to protect the user’s health and safety.

Space-as-a-service is highly flexible to adapt to the rapidly changing business needs such as mergers & acquisitions and asset management to improve efficiency and business performance. Furthermore, SPaaS also facilitates easy maintenance of the premises through timely maintenance tasks of the large-scale building to extend the life of the space.

Top Reasons to Embrace SPaaS

Users of space are demanding the physical office space to be integrated with Space-as-a-service experience. The commercial real estate industry is looking for a unique combination of technology and data-driven services to create a smart and flexible work environment. SPaaS is laying the foundation of smart office space to allow users to define and promote their firm’s core values.

Transforming the Scope of Property Management

Space-as-a-service is playing an instrumental role in transforming the role of property management and the job profile of property managers. Earlier, property managers were only responsible for maintaining the physical premises, resolving the tenant’s requests about maintenance, enforcing lease provisions, collecting rents, and producing timely financial reports. However, with the introduction of the SPaaS model, in addition to the above-stated tasks, property managers have also become a custodian of office space experience and are responsible for taking care of interior decor, social events, daycare centers, and concierge services.Space-as-a-service is becoming an apple of the eye of the young generation as it offers them the flexibility to work out of shared space without being bothered about the lease or ownership.

Reducing the Cost of Operations

It has become a hard nut to crack for the real estate sector to curb the rising cost of operations. The companies are tightening their belts to curtail their operating cost. A Space-as-a-service business model is a ray of hope for the real estate sector in this mission as it allows them to work from shared office space based on their needs. Under this model, companies are not required to maintain an office at all times. They can use office space whenever the need arises.

Higher Productivity

Space-as-a-service allows real estate companies to operate on flexible terms. Shared space will provide even more flexibility to employees as they can work from the place of their choice. It also saves the time of the employees consumed in commuting which increases their productivity.

Owning an Office at Posh Location

Space-as-a-service has made it possible for small real estate companies to own or lease office space at posh locations as they share the high cost of office space with other companies. The shared space business gains crucial brownie points in this aspect. Furthermore, using sharing space facilitates the company to have a dynamic workplace where employees are not confined to a small space which fuels their creativity and responsibility. This is indeed a positive sign for the company’s growth. Space-as-a-service also maximises the space utilization and curtails the cost of operations.

With the advent of SPaaS, the fortunes of a commercial real estate owner in UAE are highly dependent on creating distinctive user experiences (UX). The landlords have to brainstorm on coming up with creative ways such as leveraging data analytics to understand the occupant’s requirements to attract them. The shared space model is tapping into the hidden potentials of real estate and facilitating the firms in designing solutions to meet the dynamic needs of the consumers. The research reveals that by 2030, more than 30% of the corporate portfolios will be in flexible workspaces. Rising urbanization and shrinking square footage are paving the way for the real estate sector that can lease out furnished spaces to cater to the needs of the tenants.

Following a Space-as-a-service model will foster the growth prospects of the real estate firms and allows them to make optimum utilization of the available space. Without a shadow of a doubt, SPaaS will grow at an exponential pace and will be embraced by almost every commercial real estate player.

Dubai’s Real-estate is Bouncing Back Strongly from Disruptions

Despite all odds such as disruptions caused by Covid-19, Dubai’s realty sector is showing no signs of holding back. The city is soon expected to add 39,000 units in 2021. This will be an increase of 8% from 2020. In 2019, Dubai witnessed 31,000 residential units which include:  23,600 apartments and 7,400 villas.

Growth Drivers:

The foremost factors driving the demand of units include – improvement in buyer’s confidence, positive market sentiments, and decline in the property prices. As the industry is rapidly changing with continuous revisions in the forecasts, the developers are making efforts to adapt to the new normal.

The government is playing a decisive role in boosting the demand for property. There has been an exhaustive list of initiatives being launched by the government to spur the demand of the property such as – co-habilitation laws, FDI Laws, lower interest rates, Expo 2020, Golden visa reforms, and resuming the Trade Relations with Qatar. These remarkable steps have led to the development of resilience in the secondary market with an exponential rise in the transaction volumes, majorly by end-user buyers. In 2021, the secondary sales transactions are likely to be robust as the underlying demand is backed by lower capital values, flexible visa rules, and social & financial reforms.

The Impact of Covid -19:

Covid-19 disrupted the price recovery initially, however not for long. The market bounced back strongly with a surge in sales prices with values reaching the development costs in several districts. There has been a colossal rise in the demand for villas as buyers are looking for spacious properties with open areas. However, meeting the rising demand for villas looks challenging for real-estate companies.

The real-estate sector is still in the process of reviving from the headwinds caused by the coronavirus. Sales prices have started to witness resilience as in many districts value has reached development costs. 

Apartments are yet to reflect a promising future. A steep decline in the demand for the apartments will lead to oversupply which will hurt the prices. The rental values are most likely to stay low throughout 2021.

The Worst Hit Areas in Dubai:

The areas with apartment districts have received the biggest blow at prices. This includes – Downtown Dubai (-4%) and Palm Jumeirah (-4%).

Discovery Garden (-15%) and Dubailand (-15%) have been the weakest performing areas in Dubai in 2020.

Compared to the figures of 2014 when the prices were at their peak, villas dropped by 31%, and apartment districts dropped by 35%.

A Big Sign of Relief:

The good news for the UAE real-estate sector is that despite all hurdles which came in the way in 2020, there has been a surge of 7% in secondary market transactions compared to 2019 figures. The credit goes to low buying costs and favorable government policies. The last two months (i.e. December 2020 & January 2021) experienced the highest monthly transaction volume since 2018 due to multiple restrictions imposed by the government on the movement.

There has been a decline of 32% year-on-year in the demand for off-plan properties in 2020 as buyers are not in a mood to take any more risk and prefer to buy ready-to-swift properties. This is leading to several big property market players scaling back on new projects due to lack of demand.

Dubai Welcomed Twelve New Skyscrapers to illuminate its skyline:

Dubai’s iconic skyline welcomed 12 new skyscrapers over 200 meters tall in 2020 under the Covid era. This will boost the investor’s confidence and accelerate the pace of the construction sector in the region.

Global Numbers:

Globally, 106 skyscrapers of 200-meter-plus were constructed in the year 2020 compared to 133 in 2019. The experts hold Coronavirus responsible for this decline as construction work remained closed for most of the year.

China accounted for more than half of the total skyscrapers of 200-metre-plus constructed in 2020 with a figure of 56, followed by Dubai with a figure of 12. The US was at the third spot with 10 skyscrapers, and the UK with 5 skyscrapers. 

The tallest building to be completed in 2020 was Central Park Tower in New York City at 472 meters.

Tallest Buildings Constructed in Dubai in 2020:

SLS Dubai, at 336m, was the tallest building to be completed in 2020, closely followed by Jumeirah Gate at 308m and Amna Tower at 307m.

The Fate of UAE Real-estate Sector in 2021:

According to Global Data, the construction output growth forecast for the Middle East and North Africa (MENA) region will be 1.9 % in 2021 and 4.1 % in 2022. GlobalData still maintains its forecast for construction output growth in the UAE with a rebound in 2021 of 3.1 % and a promising medium-term outlook.

The experts believe that the construction sector will witness slow growth in 2021 after the havoc caused by Covid-19 in the UAE. The approval of the new Dubai Building Code is certainly positive news for the sector as it outlines a new set of construction rules with a major emphasis on reducing construction cost.

Digitization: Revolutionizing the Operations of the Real-Estate Sector

Digitization is a buzzword in the UAE property realm and technology industry today. The real-estate sector is extensively adopting emerging technologies such as PropTech, Artificial Intelligence, Robotics, Virtual reality, etc. to offer a seamless experience to all the stakeholders involved.  

The advent of digital technologies has made it much easier and time-saving to access the property market. A user can now access all the required information that will help him make a decision of buying, selling, or renting. The interaction takes place through property applications and search engines such as: Bayut, Zillow, etc.in just a few clicks. Ease of use is the prime factor driving the usage of digital means in the real-estate sector.

Commonly Used Digital Technologies in Real-estate Sector:

Some of the prominent digital technologies which are revolutionizing the real-estate sector in the UAE and across the globe are as follows: 

Augmented Reality:

Augmented Reality or AR has proved to be a boon for potential buyers especially in the Covid-19 era. AR facilitates the realtors in organizing digital tours of the site for potential buyers rather than physically visiting the property and risking their health. Augmented Reality applications also allow users to take a quick look at property layouts from the comfort of their own homes. The potential buyers can view the condition of the property and all its salient features using their smartphone, AR headset, or tablet. Due to its speed and convenience, augmented reality has been highly successful in enhancing the overall customer experience of the real-estate sector’s clients and customers. Some of the most popular AR real-estate applications are RealAR Places and Commercial Real Estate. 

Big Data Analytics:

The role of Big Data Analytics has been pivotal for realtors in analyzing buyer’s behavior and gaining valuable insights into the type of property they prefer. It also allows realtors in staying updated with the prevailing buying & selling trends in the market and in predicting future buying trends. This allows realtors to develop properties as per the consumer’s expectations and ensure no property is left unsold. 

Big data analytics also assist potential buyers throughout their decision-making process for their ideal purchase.

Chatbots:

While making the purchase decision, potential buyers visit several online listed property websites to discover the properties that most closely match their requirements. The process is very bulky and tedious for the buyers as it involves calling the customer services every time to have their questions answered.Artificial intelligence (AI) powered Chatbots are the revolutionary innovation that allows potential buyers to get quick answers to their questions in just a few clicks. The moment buyers access the online portals, AI-Chatbots appear on their screen ready to assist them in finding out the answers to the queries.  AI-Chatbots facilitate the buyers in making constant comparison during the process of property search. 

AI-powered Chatbots also assist real-estate brokers in connecting with potential buyers. With AI-Chatbots, real-estate brokers can swiftly resolve all the queries received from the potential buyers on their web portals which often results in an appointment and later converts into a sale. AI-Chatbots allow real-estate brokers to expand their sales & profits in a minimal time and take off their workload for them to focus on urgent and productive tasks.

Blockchain:

In the last few years, there has been an exponential rise in fraudulent property transactions. Millions of buyers globally have fallen prey to the malpractices adopted by realtors. Furthermore, there are also errors committed by the realtors such as updating incorrect property title, challenges in accessing deals, etc. which delayed the closing process. 

Blockchain technology is a savior for buyers as it offers data transparency. It operates on the concept of sharing ledgers which supports peer-to-peer transactions without needing central administration. ‘Encrypted Consensus’, without the meddling of third parties, is the real essence that makes Blockchain technology an apple of everyone’s eye in the real-estate sector.

Digital Architecture:

The foundation of strong architecture highly depends on its fluid designs to get the knack of different angles, fragments & curves. The implementation and usage of digital tools at a wider scale in the form of architectural designing software is working wonders for the building architects in creating robust and efficient building designs. Some of the popular digital tools used by architects globally include – AutoCAD, ArchiCad, RHINO 3D, BIM (Building Information Modeling), 2D – 3D modeling softwares, etc.

Role of digitization  in the Covid-19 Era for Real-estate Sector:

The global pandemic – COVID-19 has halted the operations of every industry and the real-estate sector is no exception. There has been a significant decline in construction activities across the globe since April 2020 due to the safety reasons of the workers. In these turbulent times, digitization  has emerged as a great savior. The real-estate developers are leveraging emerging technologies such as – Robotics and Artificial Intelligence to ensure the construction process remains uninterrupted. The real-estate industry is using drones on a large scale to perform onsite evaluations and surveys. 

Global real-estate firms are resorting to cost-cutting measures to overcome the massive business losses caused due to the pandemic. The top priority of the real-estate head honchos is to curtail the expenses on creative marketing, advertising, and content production as these activities do not generate any direct revenue. They will be choosing digital platforms & social media channels to advertise their upcoming projects which are still more cost-effective than television advertisements or other modes to promote their products. Certainly, digitization  has a crucial role to play. A shift towards digital marketing will yield fruitful results for the real-estate sector in terms of cost and business expansion. 

There has been an exponential rise in the demand for PropTech solutions from the real-estate sector as the realtors are eager to leverage data to unlock profitability and galvanize their user experience (UX). Digitization or digital technologies will complement the UAE real-estate sector by providing buyers and realtors instant access to insights and tools, for agile customer engagement. Digitization will facilitate the real-estate sector to integrate with a global market and make their business operations more transparent. It will drive a 360-degree transformation of their sales and customer engagement. Without a shadow of a doubt, embracing digitization  is a win-win situation for both realtors and the buyers.

Digitization at Kaizen AMS:

Digitization is an integral aspect of Kaizen AMS’ business operations and being driven by technology is among our core values. Leveraging all types of digital channels, we strive to make it simple for our clients to reach us. Through the ‘Contact Us section on the Kaizen AMS website, our potential landlords & investors can get in touch with the business development team to explore options to start business with Kaizen. At Kaizen AMS,  we make a positive difference to the lives of our clients & customers’ by offering unparalleled customer services to create those long-lastingMemorable experiences’.

Expo 2020 Dubai to Catalyze the Pace of UAE’s Real Estate Sector

As the countdown for Expo 2020 Dubai begins, the real estate sector is getting ready to make the most of this opportunity. The city has emerged as the most attractive destination for investment especially in the real-estate sector in the last decade due to the higher rate of returns and zero tax on investment — a combination that does not exist in any other part of the world.  Starting from Friday, January 22, 2021 UAE residents and tourists are allowed to visit  the Expo 2020 Dubai’s ‘Terra — The Sustainability Pavilion’ for Dh25 per ticket. The Pavilion’ will focus on the most trending topics today such as – climate change, reducing the carbon footprints, environmental impact, solar energy, exploring other sources of energy, finding out new and innovative irrigation techniques, including a greywater recycling system to reduce water use in the landscape by 75%, and working towards providing real-life solutions to help preserve the earth for future generations

Growth Drivers:

There are a lot of expectations of the real estate industry from the EXPO 2020  due to a list of favorable policy reforms and schemes launched by the UAE government such as: the Golden card visa, investor visa, 100% foreign ownership for enterprises, easy payment plans, long-term residency options for professionals, and the flexibility offered by financial institutions in debt repayment, and foreign retirees scheme. 

Furthermore, the success of Expo 2020 will also get a boost from the recent venture of ICD and Dubai South to launch the Dubai Global Connect (DGC) initiative which is launched to connect global wholesale buyers and sellers. DGC is a wholesale market platform that links buyers and sellers globally. The initiative will have a favorable impact on the competitiveness of the real estate market, infrastructure, economy, trade flow, which will spur the sales of the real-estate sector. These schemes will boost investor confidence and foster more investment into the UAE real estate market.

Forecast & Predictions:

The cost of constructing the expo site and related infrastructure is estimated to be US$6.9 billion. The Expo is predicted to attract significant investments to the UAE economy of Dubai. Here are some of the predictions on the impact of Expo 2020 on UAEs economy.

  • Ernst & Young (EY) report – 2019 predicts that the Expo 2020 Dubai will contribute AED122.6 billion of gross value added (GVA) to the UAE’s economy till 2031. The grand event is also predicted to support up to 905,200 full-time equivalent (FTE) job-years in the UAE until 2031, which is equal to approximately 49,700 FTE jobs per annum.
  • The EY report also expects the Small and medium-sized enterprises (SMEs) are estimated to receive AED 4.7 billion in investment during the pre-Expo phase, which will support approximately 12,600 job-years.
  • According to Jones Day analysts, the Expo 2020 will generate approximately US $23 billion (AED 84.5 billion) for the emirates, which is equal to 24.4 % of Dubai’s GDP between 2015 and 2021. Jones Day analysts reached these figures by calculating the total estimated spend by the government, participants, visitors and general commercial activity related to the event. 
  • Jones day report  also predicts that, over the next six years, the UAE could attract as much as US$100 billion to US$150 billion in foreign direct investment across a range of industry sectors, including financial services, infrastructure, construction, real estate, hospitality, tourism, and transportation.
  • The event organizers predict that during the peak six-month period of the World Expo 2020, the largest event to be held in the Arab World is predicted to add the equivalent of 1.5 % to UAE Gross Domestic Product.

Expo 2020 to Spur UAE Economic Growth to 4.5%:

The Expo 2020 will be a big push for the UAE economic growth which is under 2% in 2020. The experts predict that Expo 2020 will take UAE economic growth to new heights with GDP growth surging to 4.5% over the next few years.

Expo 2020 will have a favorable impact on the job market and create a pool of opportunities in every sector such as real estate, property management, infrastructure, travel, tourism, engineering, development, and architecture.

A Big Push for UAEs Real Estate Sector:

Real estate gurus predict that Expo 2020 Dubai will expedite the pace of growth of the UAE real estate market. The rising interest of Chinese and Indian investors due to lucrative government policies is indeed great news for the UAE real estate sector as well as for the property management firms. 

According to the Arabian Post, so far, Expo 2020 planners awarded 47 ok construction contracts worth AED 11 billion to organize the event. Expo 2020 Dubai will also boost the average price of the residential properties in Dubai in the range of AED 1,000 to 12,000 sq. ft. 

The real estate experts expect a vast transformation to take place in Dubai property value and sales amid Expo 2020 Dubai. The ‘Expo effect’ will lead to sold-out hotel rooms and stimulate the job market. The grand event will ensure that the UAEs real estate sector thrives despite market fluctuations such as declining oil prices, the introduction of VAT, and the recessionary phase due to Covid 19. 

Expo 2020 will foster tourism in Dubai which will result in a surge in occupancy rate, boosting the short-term rental market. The government expects this momentum even after April 2021, banking on its new visa reforms and other favorable schemes. 

Concurrently, the property market is also expected to meet the demand-supply gap on the back of affordability in both sales and rentals. 

In addition, the Dubai Land Department (DLD)  can play a prominent role in the growth of real-estate industry as it looks forward to contemplating tokenization of real estate units. This will open doors for foreign investors and induce price-stabilization. The Expo 2020 will be graced with the presence of affluent venture capitalists, real-estate aficionados, and potential expats offering Dubai an auspicious opportunity to showcase all it has to offer on a global stage. Along with residential properties, commercial developments are also being planned in the allocated 1.5 million square feet area, with IKEA and Ace Hardware already established in Dubai South and Siemens.

The Expo 2020 event is expected to boost the real estate sector in UAE due to positive investor sentiment and a surge in economic activities. The event will be a major push for the residential property prices in Dubai which are on a downward trend since 2017. 

Expo 2020 is expected to add more than 60,000 new properties to the market before its launch. The sector will also have a profound impact of favourable government policies such as – easing of ownership and visa regulations, over recent months. This will work wonders for the real estate industry and create even more favourable conditions for real estate growth and development. The grand event will have a favorable impact on the prices and will attract more investment in the near future. 

How Can Property Management Firms Mitigate the Business Impact of Covid 19?

The UAE economy was performing fairly each year until its growth was interrupted by the Coronavirus disease. As widely reported, a survey conducted by the Dubai Chamber of Commerce, COVID-19 will lead to the closure of almost 70% of the UAE-based businesses. However, despite all odds, UAE’s economy is amongst the least affected by Covid 19 compared to the world’s biggest economies such as the U.S.A, U.K, E.U., and the BRICS nations, a special thanks to the timely and effective measures taken by the government to soften the blow of the pandemic on the economy as well as on human lives.

The UAE economy is expected to resume recovery to pre-COVID-19 levels in 2021. This is indeed great news for the region’s property management sector as it will be hugely benefited from the trend of robust economic growth which is expected to continue until 2024 as per the evaluation of IMF and HSBC.

Owner’s Association: Meaning, Role, & Significance

As per the Jointly Owned Property Law, or the Strata Law, “Owner’s Association is a non-profit establishment and a separate legal entity which consists of all the owners of the units in a jointly owned property,”.

The Owner’s Association is primarily responsible for the management, maintenance, and operation of common areas within the jointly owned property with each unit owner being a member of the OA. All individual owners in the community become members of the OA as soon as they purchase a flat or house in that particular building or community and start making the payment towards the annual service charge for the maintenance and upkeep of the common areas of the building or community. 

The Owner Associations are governed by a board of elected unit owners and headed by an OA manager, who may be an owner acting in a voluntary capacity. There is also a rising culture of appointing OA managers from a specialist company licensed and registered by RERA.

The owner’s association plays a decisive role in the enforcement of statutory regulations, the formation of the rules & regulations, and ensuring the highest standards of security of the building. OAs also devotes a considerable period of time towards strategic financial management with a core objective to improve the life cycle of the building.

The Adverse Impact of Covid 19 on UAE Economy: 

According to Oxford Economics, the United Arab Emirates could lose 900,000 jobs which are eye-watering for a country of 9.6 million. The region is also likely to witness 10% of its residents uproot. This havoc will minimize the number of tenants in the apartments and will also hamper the demand for new properties. Within the two months of the spread of the pandemic in UAE, more than 150,000 Indian nationals and 40,000 Pakistani nationals left or registered to leave the UAE by early May 2020. Around one million expats are expected to leave UAE in the next 4-6 months. This is indeed very bad news for the UAE’s real estate and property management sector.

The UAE property market was in a bad shape before the spread of the global pandemic. Coronavirus further added to the miseries for the sector and aggravated the situation. Within the first three months of the spread of the virus, the residential property prices fell by 30% due to weak demand.

Top Challenges Ahead of OA Firms:

Covid 19 has severely hit the financial capacity of the owners association firms. There has been a huge decline in the rental rates of the properties due to the slow demand and migration of tenants from the buildings. This has adversely impacted the budget of the property to be spent on the maintenance of the building resulting in inefficient building operations, higher utility costs, and a surge in energy consumption. Another daunting challenge for the owner’s association firms to address is the collection of service charges. Due to Covid 19, a list of affluent tenants moved outside the UAE to much safer places which reported almost negligible cases of Covid 19. These tenants were not aware of their commitment to the association. The UAE government is yet to indisputably enforce legislation on owners’ service charge obligations.

Growth Drivers:

The key growth drivers for the UAE’s Owners association sector will be the continued financial stimulus from the government, easing of the lockdown, and the upcoming Expo in 2021, etc. The UAE  government has laid major emphasis on curbing the growth of the virus and normalizing the economy which has worked wonders for the property management and the OA sector.  Dubai was recently awarded a “Safe Travel Certification” from the World Travel and Tourism Council, while the UAE ranks third in Covid-19 testing per one million of the population. These factors will have a favorable impact on the occupancy rates at the properties which will positively impact the business of OA firms.

How Can OA Firms Overcome the Effects of Covid 19?

Owner’s association firms must draft a well-thought emergency response and a business continuity plan to address tenants’ health incidents. Following the process can provide a solid foundation for a sustainable response program. 

Owner’s association firms must conduct a risk assessment and based on the results should decide whether to expand its current plan to address threats to tenants’ health. They must implement guidance released by the public health officials, counsel, and industry resources to make changes and must circulate the emergency plan with staff and tenants.

To attract the tenants in these difficult times, OA firms must keep service charges lower. Although lesser service charges will create a revenue deficit, OA firms will earn a fair share from the increased occupancy rate.

OA firms should hold training sessions to educate their managers, tenants, and board members on the industry procedures and government laws on Covid 19 to make each party involved in their rights and obligations. This will ensure clear communication among the industry stakeholders and will also have a favorable impact on tenancy rates. Owners Association firms must circulate their plans to combat Covid 19 with the tenants and key staff members. They can also consider hosting a teleconference to explain their plan and implement it. 

It is also of paramount importance for the OA firms to maintain clear and transparent communication with the tenants on the spread of the virus, maintaining the data of the number of tenants falling victim to it, and releasing advisory on all tenants who are diagnosed with Covid 19 to ensure other tenants maintain distance from them which is very important to curb the growth of the virus.

Maintaining sufficient funds is another key aspect OA firms must focus on. They must maintain robust capital reserve funds to deal with any fund crisis situation. Furthermore, it will be wise to go for insurance policies to protect their assets and to have the right cover by professionals.

5 Technologies that will reshape Real-Estate in 2021

No one can deny a strong bond between the Real-estate Industry and Technology. Technological developments have led to momentous improvements in the functionality of buying & selling platforms. Their operations and accessibilities have become much simpler and user-friendly for everyone associated with the sector. It is now a cakewalk for the landlord to get through to their potential tenants or homeowners and vice-versa. Buying & selling platforms are swiftly and hassle-free, catering to the requirements of every stakeholder, right from a real-estate agent looking to sell a property, to a landlord in search of his dream tenant or prospective homeowner. 

Whether it is for construction purposes, property management, home services, buying, selling or renting, the implementation of technology has drastically revamped the process of interaction for all associated parties. Today technology is touching the lives of everyone associated with the UAE Real- estate industry. In the last decade, technological advancements have impacted every aspect of the sector, with several breakthroughs achieved in the past 4-5 years. 

Here are the top 5 technologies ready to transform the future of the UAE real-estate sector: 

Blockchain: 

Blockchain technology has worked wonders in supporting cryptocurrency and tokenization. The UAE real-estate head honchos are all set to reap the maximum benefits of tokenization as it facilitates landlords in selling portions of ownership in their properties using the Blockchain technology. Tokenization allows buyers and sellers to prepare real-estate contracts with comprehensive encryption and built-in legitimacy checks. Furthermore, the blockchain ledger feature facilitates the landlords in easy and secure storage of property titles.

Virtual Reality:

In this era of Coronavirus pandemic, Virtual Reality (VR) is making headlines for all good reasons. VR allows the associated parties involved in the sales & purchase of property to take a look at its condition from the comfort of their home. Virtual Reality also facilitates easy implementation of social-distancing norms by curtailing any need of physical visits of the property. Thus, VR protects all the parties involved from being affected by any type of pandemics such as Covid-19, seasonal influenza, or any communicable disease. Some of the other unique benefits of VR include – improved customer experience, personalization, low-cost, global reach and better ROI.

Machine Learning: 

Machine learning (MI) is acting as a panacea for real estate professionals in making a huge business transaction. It allows the top leaders in making smarter investments and real-estate deals that assure optimum utilization of their time & money. The implementation of agile & innovative machine learning software is making it easier to make accurate predictions about the best-selling properties in the coming days, the future price of the property and rent rate, and in calculating the commission’s rate. As per the research conducted by the global management consulting firm, McKinsey & Company titled – ‘Getting ahead of the market: How big data is transforming real estate’, machine learning applications designed for the real-estate sector can predict changes in rent rate with 90% accuracy and the changes in other property metrics with 60% accuracy rate.

Artificial Intelligence (AI):

In the last few years, Artificial Intelligence (AI) has become the heart & soul of the real-estate industry. It is widely incorporated in every application used in the sector for automating tedious tasks. As per the research conducted by professional services firm – PricewaterhouseCoopers (PwC) titled How AI is pushing man and machine closer together, businesses are using artificial intelligence to eliminate repetitive tasks such as scheduling (79%), paperwork (82%), and timesheets (78%).  

The implementation of AI converts raw data into actionable insights to make it easier for all the parties involved to find, view, sell, or purchase properties. Artificial Intelligence has improved user experience several folds by simplifying the decision-making process involved in the property search. AI-powered software recommends the properties to the users based on their preferences such as location, current trends; value, etc. and thus, driving user engagement. Furthermore, the usage of AI-powered Chatbots assists real-estate professionals in swiftly answering the queries of their prospective customers.

5G:

5G is all set to revolutionize the real estate industry. It means the fifth generation of wireless technology. 5G is the fastest and most robust technology the world has ever seen. The implementation of 5G is creating truly wireless workplaces and commercial buildings with higher bandwidth. The modern tenants and homeowners are prioritizing security. They prefer to live and work in secured buildings that are protected with advanced cameras and sensors. 

With the help of 5G, it has become easier to connect cameras and sensors and produce high definition images to transmit them instantly anywhere.

Final Words: 

Emerging technologies are streamlining the complex processes of the real-estate sector by creating newfangled platforms to connect buyers, brokers, sellers, and lenders. Amid coronavirus, the real-estate professionals will widely adopt virtual reality (VR) platforms to walk their potential customers and clients through to the properties and in funding upcoming real-estate projects. 

The magnitude of emerging technologies in the real-estate sector has increased at an exponential pace. In the coming years, we will witness a substantial surge in real-estate firms investing their fortunes in developing software applications that most closely predict the future buying and selling trends. This will protect the real-estate sector management from colossal losses incurred due to inaccurate decisions as well as from future uncertainties.

PropTech – An Innovative Way to Conserve Energy & Curtail Cost

Energy prices are soaring at a substantial rate and becoming a cause of concern for global corporations. Not only developing nations, but even developed nations of the European Economic Area and North America are facing the brunt of rising energy prices. The energy prices in Sweden and Norway increased between 20-25%. Denmark, Belgium, and Germany are not far behind. The prices for household electricity were around €30 per 100 kWh in all three EU nations in the second half of 2019. There was an overall increase of 1.7% in the EU in 2019 compared to the previous year. 

The energy prices remain fair in UAE due to the massive subsidies offered by the government. However, these subsidies are costing a fortune to the region and are slowing down the pace of its economic growth. According to the leading consulting firm, Strategy& Middle East, in the last two decades, the Gulf States have spent over US $120 billion on energy subsidies, while in the UAE, the accumulated figure stands between US $7-10 billion. The current pricing structure is not sustainable in the Gulf region and if it continues, the region will incur an extra cost of US $150 billion on energy subsidies. 

The energy prices won’t bring any relief and will continue to surge in the coming days. The efforts are being laid to explore novel solutions for conserving energy and reduce extortionate energy bills. One such solution is PropTech.

PropTech: Meaning and Significance

PropTech is a widely used term for property technology. It commonly refers to leveraging information technology infrastructure to assist corporates and individuals in buying, selling, and managing real estate. PropTech streamlines the real estate sector processes by connecting buyers, brokers, sellers, lenders, and all the parties involved using virtual reality to walk through properties and funding upcoming real-estate projects. PropTech is transforming the small property management firms or businesses in UAE through technology, by changing the way individuals buy, rent, sell, design, construct, and manage residential and commercial properties. The evolution of PropTech is to continue, with several new PropTech initiatives leading the way in UAE such as – smart cities and buildings (Smart Real Estate), the sharing economy, the home building industry (ConTech), and the finance industry (FinTech). ConTech and FinTech are considered to have close ties with the real estate industry.

The Need for PropTech

A vast majority of energy is consumed in office space and they have emerged as a new colossal ecosystem of energy consumptions. According to Green in Future, the buildings account for approximately 40% of global energy consumption. The urge for PropTech can be realized from the fact that around 60% of buildings in the world’s fastest-growing cities are yet to be built by 2050. This will further increase energy consumption by several folds. 

Offices are quite infamous for inefficient use of energy which leads to the wastage of millions of hours of monthly usage and also escalates the energy prices. Extreme climatic conditions are also responsible for raising the consumption of electricity at offices. However, it is crucial to create an environment to monitor the energy consumption of the buildings and undoubtedly, PropTech can play a decisive role in making this happen. The implementation of PropTech is facilitating modern architects in creating eco-friendly buildings and in maximizing the usage of their materials through unique construction designs. PropTech has been instrumental in the development of Green Buildings which minimizes the consumption of energy and also reduces the overall energy cost.

Win-win Game

PropTech is a win-win game for the corporate as well as the developer. It enables the firm to cut the cost and create a brand image of an environment-friendly company. The implementation of green technologies will result in developers gaining ‘Green building certifications’ without hassles, which will assist real-estate firms in targeting elite clients with deeper pockets.

PropTech in Energy Conservation & Cost-reduction

PropTech plays a decisive role in the creation of smart buildings. Smart buildings are the structure that uses technology to automate a building’s operations including lighting, heating, and security. Smart buildings increase efficiency to minimize energy waste. PropTech has also paved the way for the ‘smart city’. The concept of the smart city refers to urban development that integrates information and communication technology (ICT) with IoT solutions to manage a city’s assets such as information systems, schools, transportation, water, and law enforcement, etc. PropTech also facilitates the collection of data to improve the efficiency of urban informatics and technology and in minimizing the energy and operational cost.

PropTech conserves energy by automatically adjusting the lighting, temperature, and ventilation based on the requirements at a particular time. The research suggests the energy expenditure accounts for almost 19% of the total operational cost of a building. For most of the small-scale and medium-size companies, a 10% reduction in energy can positively impact their profitability by 1.5%.

PropTech also curtails building operation costs by almost 18% by fluctuating the ventilation level depending on the number of occupants at a particular time. The retail firms use sensor-based footpath tracking to assist their store managers in effectively planning the staff at a particular time based on the customer flow, adjusting product placements, and managing inventory as per the demand. 

‘Dubai’ Model:

Dubai is indeed a perfect example of a smart city where PropTech has worked wonders in reducing the extensive usage of energy, water, and other important natural resources. Dubai planners have leveraged smart-city technology to redesign the flow of the city. They have closely monitored the noise and air quality by making use of sensors, smart parking, and smart streetlights. Dubai planners have used advanced smart systems to conserve energy and have also partnered with emerging PropTech startups to harvest and conserve energy and data. PropTech solutions available today in Dubai are equipped with agile wireless sensors that are transforming the face and fate of the smart building sector.

KAIZEN Asset Management Services – a Dubai based, top five property management firm in UAE, leverages its decades of collective industry experience in executing energy conservation methods for its clients. We propose unconventional energy-saving initiatives to the clients and ensure that the property operates at the highest level of efficiency to curb operational expenses. 

Capitalizing on its unique capability, energy conservation, and sustainability initiatives, KAIZEN has won the trust vote of the biggest names in the industry such as – Emirates REIT, Meraas Estates, Emaar Properties, Nakheel Properties, Mazaya, Tamniyat, and Constellation Holdings. We ensure the building meets the strict energy regulations as part of a comprehensive sustainability initiative.

Routine Maintenance through IoT

PropTech is backed by advanced Internet of Things (IoT) technology which automatically performs routine maintenance checks to detect malfunctions before they become critical and also alerts the engineering team on the issue. PropTech exercises automated control on the buildings to ensure optimum utilization of energy and space to ensure minimal energy bills.

Minimizes CO2 Emissions

A wide range of newfangled software on PropTech has been launched to assist industry head honchos in efficiently addressing their energy needs and in minimizing the impact of CO2 emissions. The quality of materials used while constructing the building majorly determines the level of CO2 emissions. The PropTech software uses advanced Artificial Intelligence (AI) during the building design stage to quickly produce the best and most environment-friendly building design which consumes the least energy and reduces energy bills. The PropTech software also tracks the energy wastage and the impact of the operations on the air quality using agile cloud-based platforms. It delivers quick information to the engineering team when the building exceeds the set environment benchmarks which can also increase its energy consumption and fluctuate the organization’s energy bills.

Final Words:

PropTech is the key factor in minimizing the environmental impact of the building. With rising emission levels and deteriorating environment quality, international governments and environment-safety bodies are incorporating PropTech in their economic decision making. PropTech has not only enabled global corporations in curtailing their energy bills but in avoiding extortionate financial penalties levied by the government for excessive consumption of energy. The effective implementation of PropTech will lead to the development of eco-friendly buildings and minimize the energy consumption of a building by 50-60%. It also assists in combating the retarding effects of global warming. There is an urge for the industry to create accurate value metrics to measure and evaluate the impact of PropTech on energy savings and cost. This will encourage several other firms irrespective of the size, to adopt and embrace it.

The Future of the UAE Property Market under Biden’s Presidency

A thrilling win of Former US Vice President and the President-elect Joe Biden in the 2020 US Presidential elections is perceived as a panacea for the UAE economy which is currently battling with Covid-19. Banking their hopes on the next ‘World Leader’, the head honchos of the UAE property sector have announced billions of Dirhams of new construction projects. The industry looks confident of the promising growth in 2021 and in years to come.

The two biggest news of the year 2020 – Mr. Joe Biden’s win in the US Presidential elections and the approval of Covid-19 vaccines from pharmaceutical firm Pfizer will have a profound impact on the UAE real-estate sector. The glimpse of the positive impact of Biden’s win on the UAE Property market was very evident from two macro-metrics i.e. a 15% rise in the price of Brent crude and a 10% fall in the US Dollar Index from its March 2020 safe haven peak. The gurus of the UAE property sector have given their trust vote to the predictions of robust growth of the sector under Joe Biden’s presidential term between 2021 to 2024.

President-elect Biden has shown a strong commitment towards working with the World Health Organization (WHO) to prevent the infection. The development & distribution of the Covid-19 vaccine both in the US and internationally is expected to get impetus under Biden’s Presidency, which will enable the world to swiftly overcoming the after-effects of the pandemic. This is indeed a positive sign for the UAE economy as well as for its real-estate sector which has already lost billions of dollars of investment to the pandemic due to the postponement of the World Expo 2020 to next year.

Biden May Unwind China Trade War in Favor of UAE:

President-elect Joe Biden can take a strong stance on China, however, is expected to reverse most of the superfluous protectionist methods implemented by the Trump government. The top agenda of Biden’s government will focus on Intellectual Property Rights (IPR), forced transfer of technology, and a rising trade deficit of the US with China. The political pundits predict that until the US economy overcomes the catastrophic effects of Covid-19, the Biden government may unwind the China trade war in favor of a return to global growth. This will indeed be a ‘glad tiding’ for the UAE economy which relies heavily on global trade. The UAE economy will be benefited from its economic ties with both China and the US. The economy will also lead to a surge in investments in the UAE real-estate sector which will arise from policy changes under the Biden government and the approval of the Pfizer Covid-19 vaccine.

Biden’s Win Will Foster International Investments in Dubai Property Market:

US President-elect Joe Biden’s win has spur optimism in the UAE property sector with several elite investors lining up to invest in the Dubai property market. A vast majority of investments are coming from the Indian & Lebanese expats, who are buying villas at the prime locations of Dubai. According to the figures released by the Department of Land and Property in the first week of November 2020, Dubai has recorded a total of USD 789.5m (AED2.9bn) in real estate and property transactions. A total of 854 apartments and villas were sold for USD 405.66 million (AED1.49 billion) and 44 plots were sold for USD 48 million (AED176.48 million). The total number of transactions crossed 1,241 in the first week of November 2020. As per the report, the Properties developed by some of the prestigious clients of Kaizen AMS i.e. – Emirates REIT, Meraas Estates, Emaar Properties, Al Fattan, Mazaya, Tamniyat, and Constellation Holding topped the overall sales charts.

UAE Property Sector to Benefit from Weak Dollar:

Despite taking several revolutionary measures to revive the US economy from the most difficult times (such as – global financial crisis in 2008-09),  the former US President – Barrack Obama and his Vice President Mr. Joe Biden has always been under fire for poorly managing the value of the US dollar in terms of other international currencies.  The US Dollar witnessed its all-time low value under the leadership of Barrack Obama-Joe Biden administration. Several Wall Street and Federal Bank economists predict that until the foreseeable near future, the value of the US dollar will continue to diminish under Biden’s term as the US President.

A weak dollar will give a stimulus to international tourism in the UAE and other emerging markets, resulting in the exponential surge in the demand for accommodation. Real-estate firms will increase the construction of more residential skyscrapers, hotels, etc. to cater to the requirements of the global tourists, which will attract significant investments to the sector.

Biden’s Presidency is a New Hope to ‘Abraham Accord’ Treaty:

President-elect Joe Biden has been instrumental in stabilizing the US relations with the Middle East and Africa in his term as the Vice President of the US between 2009 to 2017. The political experts believe that Biden’s presidency will be a big boost for the ‘Abraham Accord treaty’ between Israel and the UAE which has been inching toward normalization in recent years. The treaty aimed at establishing peaceful, diplomatic, and friendly relations, co-operation, and full normalization of ties between the two nations. As a result of the Abraham Accord treaty, Israeli athletes have participated in regional competitions in the UAE which has improved the relations between the two nations. From the business perspective, the treaty has encouraged Israel to take part in Dubai’s World Expo next year which will attract billions of dollars of investment from Israel’s companies into the UAE economy with the real-estate sector expected to be one of the biggest beneficiaries. The World Expo 2020 is now scheduled to take place in October 2021 due to the coronavirus pandemic.

Final Words:

Biden’s government agenda revolves around every key topic which has a direct or indirect impact on the fortunes of the UAEs real-estate sector such as – climate change, renewable energy, small caps, and infrastructure. Joe’s strong commitment towards coordinating with the WHO for faster development, distribution of cost-effective vaccines for Covid-19, and strengthening ties with emerging economies, are perceived as silver lining by the UAE Property sector experts.

UAE Approves 100% Ownership of Businesses by Expats – What’s the Impact?

In another historic decision, the UAE Cabinet enacted the long-anticipated Foreign Direct Investment law (FDI Law). The laws are intended to liberalize the onshore legal ownership regime and foster a favorable business climate for foreign investors. The widely discussed reforms were approved by the President, His Highness Sheikh Khalifa bin Zayed Al Nahyan.

Focus Area:

The new FDI law amends 51 articles and added new ones with a prime focus on the regulation of provisions of forming companies with limited liability shareholding. The amendments exempt expatriate investors from the minimum percentage ownership of UAE nationals. The FDI law will allow UAE to leverage a fertile legislative environment for the establishment of businesses with an objective to improve the UAE’s competitiveness.

How Do New FDI Laws Impact the Emirati Population?

The FDI laws are positive news for the UAE population where every 8th person out of 10 is an immigrant, and they long had their ownership capped at 49% in firms outside free zones. Several other legal amendments were also passed which removed the quotas requiring Emiratis to hold the majority of board positions and serve as chairs for onshore companies. Companies interested in being publicly traded can now sell up to 70% of their shares instead of the current 30% limit. The experts believe that these amendments will diminish the appeal of 45 “free” zones across the UAE, and attract those wanting to avoid local-hiring quotas and retain full foreign ownership.

The cent percent ownership by foreign nationals of companies licensed and registered in the UAE is allowed as per Cabinet Resolution No. 16 of 2020. In the last few years, individual emirates allowed foreign national owned companies to acquire the remaining stakes on a case by case basis. The new FDI laws substantially extend the scope. However, the new laws are also considered to be a massive blow to the long-established rentier benefits for Emirati citizens as a wide majority of them made their living as figurehead company partners.

Effective date:

The FDI law came into effect as of December 1, 2020. The foreign ownership amendments can come into effect within six months. Possibly, the companies can also take up to a year to begin complying with the new changes.

What was the Trigger?

The primary objective behind the introduction of FDI Laws and other revolutionary measures taken by the UAE government recently is to revive the economy from the disruptions caused by Covid-19. The global pandemic has postponed high-profile events, such as the ‘World Expo’ – 2020’ to next year which has aggravated the situation for the UAE economy as the government already spent billions of dollars in organizing the event. The World Expo-2020 was supposed to be attended by 25 million visitors. 

To overcome the catastrophic impacts of these disruptions, the UAE government has started offering significant relaxations to the Islamic legal code, Cohabitation laws, and restriction on alcohol consumption from the beginning of November 2020. The introduction of these measures will have a fruitful impact on the national competitiveness of the UAE.

The presidential decree which amends the corporate law will enable UAE to strengthen its position globally as one of the most attractive investment destinations in the world for global corporations. According to the new FDI regime, several categories of business licenses will no longer require Emiratis as sponsors with 51% shareholding rights as of December 1, 2020. 

Impact of FDI Laws on the UAE Real Estate Sector:

The Foreign Direct Investment law will allow foreign investors 100% ownership of businesses. In simple terms, now foreign investors and entrepreneurs can establish their own companies without involving local shareholders. These reforms are expected to be a game-changer for the investment landscape. Experts believe that FDI reforms will attract substantial investments to the UAE and spur the growth of the real-estate sector. There will be an exponential rise in the investments in the real-estate sector which will bring additional revenues, result in job creation and economic growth.

The triumph of the real-estate sector also means a positive impact on the businesses of property management firms like Kaizen AMS. The company is amongst the top 20 property management firms in the UAE, providing professional, newfangled, and end-to-end solutions in Property Management, Community Management, Owner Affairs, Unit Management, and Handover Services to some of the biggest real-estate brands such as – Emirates REIT, Meraas Estates, Emaar Properties, Al Fattan, Mazaya, Tamniyat, and Constellation Holdings. Kaizen AMS is a proud winner of several prestigious industry awards including the most recent  Superbrands 2018, Gulf Real Estate Awards 2018 for ‘Best Employer in Real Estate’ and ‘Best Consultancy in Real Estate’.

New Cohabitation Reforms Likely to Boost UAE’s Real-estate Sector

In a historic and unprecedented move, the UAE Government has unveiled a series of changes in its Islamic personal laws. The new law permits unmarried couples in UAE to stay together without any consequences. Until now, it was illegal for unmarried couples or unrelated flatmates to live together or share a home in the UAE. The new rules are applicable with immediate effect. The laws pertaining to alcohol consumption, divorce, and women’s rights have also been relaxed. 

The core objective behind these amendments is to make the UAE more welcoming for expats and tourists. Cohabitation reforms will fuel a flurry of commercial activities in the UAE as it gets ready to host the World Expo in Dubai which is expected to be attended by more than 25 million international visitors and will attract billions of dollars of investment into the economy. The high stake event was pushed back a year because of the coronavirus pandemic and will now take place in 2021.

The Impact of New Laws on UAEs Real-estate Sector & Economy

The experts perceive the changes made to the UAE laws as a giant leap in the process of granting greater personal freedom to the residents as well as to the UAE’s 88% population of expats. The introduction of cohabitation laws will have a favorable impact on tourism to the UAE and will spur the demand for both commercial and residential accommodation in the region. This is indeed very positive news for the UAEs real-estate and property management sector. Furthermore, hiring a trained and qualified workforce has been a long-standing challenge for the UAEs real-estate and property management sector. Relaxing the cohabitation laws will allow the sector to retain the top talent into local businesses.

The relaxation in cohabitation laws will also attract an influx of Israeli investors to substantially contribute to the UAEs real-estate sector following a historic US-brokered deal to normalize relations between the UAE and Israel. The real-estate sector will also be positively impacted by the reinforcement of UAEs position as the most attractive and tolerant places to live within the Middle East region, which would open new avenues of international investment and business opportunities in UAE. These changes will also help revamp the local legal landscape for expats which is expected to have a positive impact on the overall economy and will also boost international investor’s confidence ahead of the World Expo.
The approval of new laws will protect individualism and foster foreign direct investment (FDI) in the UAE. According to the prominent media firm – Bloomberg, cohabitation laws are part of UAEs efforts to attract foreign experience and investment and play a pivotal role in building the open-minded image of the UAE. They will also open doors to millions of international tourists, fortune-seekers, and businesses to the UAE which is already very popular across the globe as a skyscraper-studded destination.

OYO Life: ‘Thriving on the Idea of Cohabitation

OYO Life is India’s long-term fully managed housing rental solution company. The company was founded on the idea of cohabitation which is forbidden in most of the residential accommodations or hotels in India and in many other countries where the company operates. The implementation of unique thought of cohabitation in India made Oyo Life one of the most successful startups in the country and a preferred choice of youth for accommodation. 

Banking on their idea of cohabitation and offering budgeted accommodation to the youth, OYO Life clocked 4.5 times year-on-year (YoY) growth. The six-year-old company increased revenue to US$951 million for the fiscal year 2019, from US $211 million in fiscal 2018. In just a span of two years, Oyo Life has more than 10,000 units signed and over 6,000 live beds and is adding over 1000 new beds every month.

OYO Life success was later replicated by several other budgeted hotel chains in India such as – LuvStay and StayUncle who went on to taste the triumph. 

OYO is one of the finest examples of how cohabitation can work wonders for a housing rental firm and simultaneously benefit other related sectors. The relaxation of reforms in UAE will make its real-estate sector more attractive for the world, foster tourism, bring valuable foreign exchange, positively impact the revenues of the real-estate sector, and will enhance the international image of UAE.