What’s the Impact of Non-payment of Service Charges on Strata Management Firms?

In the last year, there has been a significant decline in the collection of service charges for Strata management companies which have dropped by more than half as collections dropped significantly. This is certainly not good news for OA Management firms as the decline in service charge collection means they will be left with fewer funds to be spent on the maintenance and upkeep of the property.

Why are Homeowners Refusing to pay Service Charges?

The primary reason for the non-payment is rising job losses. Several homeowners have lost their jobs due to the current market slowdown, making it difficult for them to pay their service charges. Furthermore, several homeowners are also taking undue advantage of the situation and avoiding the payments deliberately.

RERA’s Guidelines for the Service Charge Waiver:

According to the Real Estate Regulatory Authority (RERA) – “the waiver only extends to 2019 fines and so far, there has been no extension of this to service charges.”

Considering the situation prevailing at that time, in April 2020 RERA announced exemptions of all fines pertaining to the service charges in 2019. RERA also held discussions with strata management companies (acting on their behalf) which were affected by the non-payment by homeowners. 

RERA’s Suggestions to OA firms on reducing the Service Charges:

Here are the key highlights of RERA’s instructions to OA management companies:

  • RERA suggested OA management firms review and monitor the project operating expenses to reduce service charges. This move is directed towards combating the financial impact of Covid-19 as several homeowners lost their jobs or have experienced salary cuts.
  • RERA has advised OA management firms to reduce their annual budgets which will also curtail these charges. This is undoubtedly glad tidings for the homeowners. Homeowners are looking for some sort of discount; however, they have to pay the charges as approved by RERA.
  • RERA has issued guidelines for OA management firms on the number of notices any homeowner can receive, the penalties for non-compliance, payment timelines, etc. 

The Impact of Non-payment of Service Charges:

Service charges are not a burden or additional expense but the payment towards all good reasons. There is a common belief among many homeowners that these charges are misused for personal gains, however, the truth is completely different. Service charges are spent on maintenance activities and to keep the building operations running smoothly. Their funds have a dedicated government regulatory bank account. The terms of these accounts and industry regulations ensure that they don’t go overdrawn. 

Here are some of the adverse impacts of the Non-payment by homeowners:

  1. Interruption in Maintenance Work: Non-payment of service charges by homeowners leads to lack of funds with strata management firms. This will ultimately pause the ongoing maintenance work and result in the discontinuation of several useful services and maintenance work until funds are available including the disconnection of common area utilities by the utility service providers
  2. Decline in the Value of Property: Home is the biggest asset for everyone. Avoiding the payment puts ongoing maintenance or development work at a temporary halt. This ultimately leads to a decline in the value of property or an asset, which is a far costly affair.
  1. Delays in Essential Services: The non-payment of service charges by the homeowners results in the short-term financial stability of the block. This adversely impacts the homeowners as all essential services (such as – cleanliness, security, MEP maintenance services, maintenance of HVAC system, roof repair, maintenance of gyms, swimming pools, repair work, etc.) will be put on hold due to non-payment.

What can OA Management Firms do to Avoid Non-payment?

As per the process, if the owner does not pay the service charges and ignores three warning notices, the OA will notify RERA and the owner can be declared and registered as a defaulting owner.

In every case, non-payment of annual service charges is unlawful and should not be used as a tool against the OA. The OA must make the payment towards maintenance of the building and that obligation should not be hindered by the owners. RERA approves the annual service charges once the financial statements are completed and filed. 

How to Avoid Non-payment of Service Charges?

  1.  Maintain Transparency:

Most of the challenges in the payment of service charges arise due to a lack of transparency and a communication gap between the OA firms and the homeowners. On a quarterly basis, project updates must be sent with the homeowners informing operational as well as financial matters.

  1. The Significance of Paperwork:

To avoid any confusion as well as for legal purposes, it is important that landlords maintain a comprehensive document that clearly outlines the summary of charges to be paid, the reasons for the increase in charges or difference from the previous year, modes of payment, details on the payment due dates & late payment charges, and the contact details of relevant people or departments owners can speak to clarify their doubts or queries related to service charges.

  1.  Seek Assistance from a Property Management Firm:

Timely payment of service charges is critical for the swift operations of the block. In case landlords struggle to collect rent from the tenant if the property is rented. In that case, they can seek help from a professional property management firm that is backed by a team of dedicated experts to get this all ticking over like clockwork.

Key Trends that Will Drive Real estate Investments in the UAE in 2021

The UAE real-estate sector was attracting significant investments from across the globe until disrupted by Covid-19. The pandemic has negatively impacted the exotic residential properties but had a significantly positive impact on the non-residential and industrial real-estate sector.

As the prices of properties are declining, it is of paramount importance to have an understanding of the recent market trends to make a wise investment decision that fetches better returns. It is also important to make a quick decision as prices won’t be down for long, banking on the list of government initiatives such as FDI Laws, restoration of relations with Qatar, Covid vaccination, technological developments, co-habitation laws, and above all the upcoming Expo 2020 which is expected to attract more than 25 million visitors in late 2021.

Here are the Top Five investment opportunities that can work wonders for the real-estate sector in 2021.

1. Non-residential Sector to Emerge as the Biggest Revenue Generator:

According to MarketLine’s September 2020 report titled – ‘Construction in United Arab Emirates’, the UAE’s construction industry generated a revenue of $84.4bn in 2019. The non-residential segment was the biggest revenue generator, accounting for total revenues of $56.6bn which is around 67% of the industry’s overall value. In the coming years, the share of non-residential segments including mixed-use developments can expand up to 75% in the UAE.

2. The Rise in the Demand for Industrial Real estate:

Going by current demand and ROI, industrial real estate is indeed an apple of an eye for the commercial real estate sector. Post coronavirus, there has been an exponential surge in online shopping across UAE, which has increased the demand for logistics. With rising cases of Coronavirus in the UAE, there has been a continuous increase in online shopping as customers are avoiding physical visits.

As per the study conducted by Mastercard in Nov 2020, 73% of UAE consumers are shopping more online since the start of the Covid 19 pandemic. The study also reveals that 54% of consumers are spending more money on the virtual experience. The increase in online sales is fostering the growth & expansion of the industrial real-estate sector as companies across all sectors are now requiring more cold storage facilities, distribution & data centers, and warehouses to store their products to cope up with the rising demand. Top logistics players such as Al-Futtaim Logistics, Emirates SkyCargo, ATS, CEVA Logistics, Amazon, etc. are investing heavily in building their logistics and supply chain infrastructure to meet the current & future demand of the industry. The future of industrial real estate looks promising in the coming years.

Amazon Supply Chain Model: Case Study

Despite being an e-retailer, Amazon has always found it cheaper to handle logistics itself rather than using third parties. The company’s supply chain network in the Middle East is almost as vast as established players such as FedEx or UPS. Since 2015, Amazon has spent billions of dollars in building its own global end-to-end logistics network which is equipped with the latest vans, and trucks, and aircraft.

In the UAE, Amazon fulfills a large majority of customer orders from DXB3 which is the biggest fulfillment center in the UAE. Announced in 2018, DXB3 is spread over a 23,000 square meter facility located in Dubai South. The center ensures that the demand is met during the busy year-end and festive seasons. To increase its penetration in logistics, Amazon has adopted the approach of delivering the packages through its last-mile team or through local courier companies called the Delivery Service Partner program. The program has allowed Amazon to increase the speed and flexibility of the delivery of its packages which ultimately benefited its customers to get faster orders.

3. Second Home Syndrome:

There is a rising culture among global elites to have a holiday home internationally. In the last few years, Dubai has become one of the most preferred cities in the Middle East for the rich to have a holiday home. This will boost the city’s real potential for rental income in 2021 that can offset ownership expenses.

Secondly, there is also a rise in the culture of the “co-primary residence,” or an apartment near the office in the city. As executives who decamped to luxury suburban villa communities on the outskirts of Dubai ease into one year of work from home, their mindset has changed indefinitely. Many of these executives are interested in exploring a second home that is closer to the office. This will be a big boost for central Dubai’s residential market.

4. Tough time Ahead of Commercial Real-estate sector Due to Remote Working:

According to a 2019 survey by International Workplace Group., the UAE had one of the lowest remote work participation rates before coronavirus. Merely 10% of the UAE workers reported working from home 1-2 days per week, compared to a global average of 62%. However, post coronavirus, almost 40% of the UAEs population is working from home. This has adversely affected the commercial real estate sector as most of the office buildings remain underutilized. This has also raised concerns among real-estate investors about the security of the income.

There has also been a rise in teleworking which has also negatively impacted the demand for secondary offices, with the overall share of the office sector shrinking from 40% to 35% in the first three- quarters of FY 21.

5. Discounts on the Properties Located in the Urban Areas:

2021 will witness an exodus of residents fleeing the expensive, populated, and high-density urban areas into the suburbs for more space and budget-friendly accommodation. This will leave thousands of landlords in the dust, who will be unable to evict non-paying tenants but still responsible for the upkeep of the property and paying all expenses associated with it such as – taxes, insurance, and the mortgage. In 2021, investors will be eyeing these properties to ride out the current wave and buying these rental investments at a much discounted rate.

Conclusion:

These five investment trends hold the drive for real estate investments in 2021. This year is expected to be profitable for the investors targeting the Dubai market. Dubai Expo 2020 will further boost the investment prospects in the real estate market.

The real-estate sector could turn this crisis into an opportunity by focussing on designing people-centric solutions which meet sustainability criteria set out by the UAE Government and becoming increasingly enforced. 2021 will be a year for change like never before and there will be marked uplift across construction as a whole, by Q3 FY 22.

Why are developers not consulting Property Managers during design and construction?

As Property Managers, whenever we enter a building it’s automatic that we begin to analyze, compare, sometimes criticize, or perhaps take notes of something new.  It’s in our nature and in many ways, it helps us to improve.  We spend so much time in different buildings, so together with the trained eye to spot things, it is inevitable that these observations are made.

I’m certain that anyone managing property has been in a situation where they find themselves asking the question ‘why have they (the developer) done that’?  This, of course, refers to physical elements of the building such as the positioning of security desks in the lobby or even the size of the lobby in some cases.  These are instinctive thoughts from those of us working in the industry.  However, once we dig deeper into understanding how a building is managed coupled with the complexities of budgeting and service charge calculations, you very quickly ask yourself another question – why are developers not consulting Property Managers during design and construction?

The first thing to point out is that developers face many difficult challenges, including a volatile market, ever-changing regulations, and fluctuations in build costs.  These are all extremely testing for developers competing fiercely to establish or maintain their reputation in the market.  This reputation is defined by the people who use the finished product, be it residents in their homes or companies occupying office space, at a time when the property manager is responsible.  So, if the reputation of the development and developer is made or broken once it is in the hands of the management company, why would they only be given a month (typically) to advise the developer and prepare to welcome residents.

Property Managers have a wealth of knowledge that can preempt ‘Post-Occupation Evaluation’ pitfalls – from the physical elements of the buildings, the complicated logistics of handover and snagging. Also, common contractual issues which arise long after occupiers settle in a building. 

By engaging with a property manager early on, developers will benefit from the input of the professionals that will be the ones taking care of the property.  The areas in which the management company can advise include design, feasibility, governance and financial. 

Design

It may not seem like an obvious task for a property management firm, and the suggestion is not that property management companies take over the design from architects.  Far from it, we are fortunate to live in a city where architectural boundaries are pushed to the limit and we are blessed with some truly iconic designs.  There are occasions in some of the more standard buildings where some minor changes make a lot of difference to the building, these include:

  • Large lobby areas –  These can look fantastic in Burj Khalifa but in a typical residential building, the question of cost is a major issue.  The room needs to be kept cool and furnished correctly, both costly to the end-user.
  • Façade design – Complex designs look great but are often very difficult to clean, which means a much higher cost for cleaning.
  • Void areas – These are areas or rooms in a building which, for all intents and purposes do not have a use.  With very simple changes, these can be transformed into usable spaces such as kids’ play areas or a games room.
  • CCTV monitors – Often placed in a separate room, which requires additional security personnel.  By placing them at the security desk in the lobby, you remove the need to employ additional security.
  • Form over function – What might look attractive in a rendering can sometimes be impractical, for example, bowl style washbasins look great when mocked up but are very difficult to keep clean and free from grime.
  • Building Management System (BMS) – BMS are now common in buildings but are often not utilized properly.  The purpose of a BMS is to help those managing the building once complete, so surely those managing should be consulted with.  These systems can be a huge cost but it is very typical to find that only a fraction of its capability is being used, and at the same time, some basic functions like access control on doors are not included.

Financial

Finances dictate many factors of how well a property is managed, in the worst case we have seen buildings being cut off by DEWA.  Developers try to mitigate this by incorporating a service charge rate in the Sales & Purchase Agreement (SPA), but this is often done simply by looking at neighboring buildings and adopting a similar rate.

Each building is different, each developer has a varying vision so the preparation of a budget should be high on the priority list.  One of the frustrations of owners taking handover is that the service charge rate shown in the SPA is very different from what they are being asked to pay. By working with the management company early on, the developer can instill their vision allowing the management firm to understand the finer points of their requirements and prepare a detailed, properly researched budget. 

Feasibility

A great deal of time and money is spent on the feasibility of a project.  Projected costs, income, and margins are just a few of the items analyzed to understand the project’s viability.  A property manager can play a role here too.  Experienced property managers have a wealth of experience and expertise, which developers can tap into to understand some finer points.  Insight into understanding preferences of residential tenants, or perhaps knowledge of whether commercial tenants in a certain area are looking for small, fitted offices as an example.

Governance and Compliance

Dubai, like any other major city in the world, has a complex framework of governance and compliance.  They are in place to safeguard the interests of all, but it does mean a lot of work for developers.  When it comes to the management of property, two documents that play an integral role are the SPA and the other is the Building Management Regulation (formerly the JOPD).  I referred to the SPA earlier and in particular those which include a service charge rate. 

The Building Management Regulation (BMR), in its most simple explanation, is the rule book for the property.  It is such an important document but in so many cases it is left as an afterthought by developers, which more often than not is simply copied from another building with a few minor changes (if any) made.  By allowing the property manager time with the BMR, they, along with the lawyer and developer can insert important measures that would likely safeguard or enhance the developer’s reputation. 

Things as simple as not allowing pets to implementing leasing measures that restrict sharing accommodation can be part of the BMR.  You may find the developer wants to maintain a certain level of service, after all, it is their vision, an example of this could be to include valet service or concierge services.

To conclude, there may not be a quantifiable way to measure the importance of working with a property manager early on.  It is clear, however, that the developer would place reputation as one of their most important selling tools.  This is enhanced by providing well-planned developments, with properly budgeted service charges, meaning that investors are more likely to return to the same developer for future developments.

Let us remember, it is the developers, whose ambition and vision are creating these buildings.  Architects, consultants, engineers, and contractors are employed to help the developer create their vision.  So, the question again is, why are developers not consulting property managers during design and construction?

UAE Property Market Looks Promising as Sales for Villas Increase

UAE property market is bouncing back from the impact of Covid-19. The industry looks affirmative after experiencing a lengthy phase of decline in the prices. Villas in locations such as Palm Jumeirah, Business Bay, The Lakes, and Jumeirah Islands experienced a modest rise in prices in January 2021.

According to ValuStrat, the valuation index for 2021 is almost 14% lower compared to the previous year. Dubai’s VPI — Residential Capital Values for Dubai index stood at a stable 65.3 points, compared to 79.1 the previous year. This suggests instability in the capital value of houses in Dubai. They also indicated a downward trend in villa sales and a slight decline in the upcoming matured villa projects

Exponential Rise in the Demand of Ready to Move-in Villas:

In an interview given to Arabian Business Global, President of Property Finder,

Ari Kesisoglu, stated, “Demand for ready to move in villas and townhouses in Dubai has witnessed a growth of over 500 % since May 2020 as residents choose to upgrade their living situations.”

The top reason for the rise in sales of secondary villas and townhouses is the opening up of the property market for investment to Non-GCC nationals.

Substantial Rise in Cash-based Transactions:

There has been a surge in the trend of purchasing villas through cash-based transactions. According to Construction Week, in November last year, cash-based transactions accounted for 59%, with a 14.4%,  monthly gain in transactions of cash-based sales, with ready-made housing transactions surged by 22.3%.

Buyers are Preferring Ready-made Houses over the Unplanned:

There has been an exponential rise in buyers purchasing ready-made properties over unplanned houses. The data from ValuStrat indicates the transaction volume for ready-made houses increased 18.1% whereas transaction volume for unplanned houses fell drastically by 51.5%.  There has been a surge in Off-plan sales at a lower monthly rate of 9.4%.

Key Highlights of November 2020:

Here are the key highlights of November 2020 –

Emaar, Nakheel, and Damac remained the top three property developers

The most preferred locations to buy or rent homes were Dubai Marina, Jumeirah Village, Business Bay, Palm Jumeirah, and Town Square

Despite the higher overall cost, villas witnessed an increase in sales compared to apartments as they have lower prices per sq. ft.

Apartments located in prime areas such as – Jumeirah Beach Residence, Dubai Sports City, witnessed a drop of 0.9% per month in their capital value

Unplanned locations with most of the transactions were Jumeirah Village, Tilal Al Ghaf, Business Bay, and Downtown Dubai

The price & demand elasticity of villas is much higher compared to apartments

Abu Dhabi Witness a Steep Decline in Rental Rates of Villas:

The UAE’s Capital also witnesses a steep reduction in the prices of villas as well as apartments due to poor market conditions and job loss caused by the coronavirus. Several properties have gone vacant as tenants left for their home country. In the UAE, residency permits are tied up to employment, and the expatriates are supposed to leave the country on an urgent basis as soon as they lose the job. 

With a substantial number of expats leaving Abu Dhabi after being laid off by their employers, the average rent for villas fell 3% in 2020, compared with a 5% drop on average for apartments as per Real estate consultancy firm ValuStrat.

Prices for Villas Rose First Time since 2015:

According to Bloomberg, the prices of the Villas based in Abu Dhabi were witnessing a downward trend from the last 5 years. However, banking on high demand for properties in the Covid era, the value of villas in the UAEs capital rose by 2%. Due to higher GDP and per capita income, villas in Abu Dhabi account for almost one-third of the total housing supply. The prices for apartments declined by 4%.

The decline in the Rental Value of the Property: 

ValuStrat data reveals that the average residential value in Abu Dhabi fell drastically by 9.5% YoY to AED772 per sq. ft. in Q4 FY20. However, the data also predicts stabilization in rents and capital values at established villa and apartment locations due to balanced new supply in the near future.

Growth Drivers:

The prominent growth drivers which favor the surge in the sales of apartments & villas in 2021 are as follows:

Positive Market Sentiments Due to Rollout of Sinopharm:

The experts predict market sentiments are expected to be positive due to the rollout of Covid vaccine – Sinopharm.

Increase in Non-Oil GDP:

The rating agency, Fitch Ratings predicts a 2.2% increase in Abu Dhabi’s non-oil GDP.

Govt. Initiatives:

The initiatives launched by the UAE government such as Golden Visa, FDI Laws, Cohabitation laws, Expo 2020, etc. will encourage millions of foreign professionals to settle in the UAE. This will spur the demand of Villas and will have a favorable impact on the economy as well as the real-estate sector.

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.