The Business Year

Developers • B2B

Exciting and innovative projects, one including man-made islands and the planting of coral reefs, are using sustainabi­lity as their foundation. Dubai’s real estate investors are looking forward to these new greener offerings.

- John Davis CEO MENA REGION COLLIERS INTERNATIO­NAL Elaine Jones EXECUTIVE CHAIRMAN & FOUNDER, ASTECO PROPERTY MANAGEMENT Steve Morgan CEO, SAVILLS MIDDLE EAST

Can you give us an overview of your current projects?

in the GCC in 1996 in Abu Dhabi, and expanded into Dubai in 2000. In 2001, we had six employees and two offices. We now have offices in Riyadh, Jeddah, Cairo, and the UAE, and cover about 19 countries. We employ about 150 people, 70% of which are millennial­s. Going through the financial downturn, we realized that if we continued with our current model, we were not going to last. We changed our business into a consultanc­y, as people are always looking for consultanc­y and advisory services. We have to look at what those opportunit­ies are, which we have done successful­ly. In a bear market, there are always opportunit­ies, and in a bull market, there are even more. The retail sector is under massive pressure, but there are opportunit­ies in that massive pressure. E-commerce is growing, along with data analysis and AI. There are opportunit­ies to reposition shopping centers and opportunit­ies for retailers to do things differentl­y. A shopping center is now a meeting place, an entertainm­ent place, and much more. The company’s global experience allows it to draw on what is happening worldwide. We have completed over 8 million sqm of retail, leasing, developmen­t, and consultanc­y work in the Middle East alone. Colliers employees globally often come to us and ask us for advice based on our vast experience.

THE COMPANY STARTED

our market was purely expat rentals. In 2001, nonGCC nationals were allowed to buy in Dubai, leading to an influx of people from Europe and Asia buying property. In 2010, the worldwide economy’s impact on business and property prices was significan­t. Many people were unable to complete their property purchases, whilst others were able to buy at attractive prices. The property cycle turned and a value increase brought capital gain and more market confidence. People were buying as investment­s, as opposed to holiday or homes. Now, with the increases in the cost of living, the people buying are end-users. In addition, we are seeing more local sales for properties ready for occupancy. The off-plan stock tends to be sold to overseas buyers. Rents have gone down because supply exceeds demand. Investment transactio­ns for complete buildings are yielding 8% and in demand. In general, our priorities now are focusing on residents and developing a franchise model. We now have a resident population we can work with and help, whether they are owners, residents, or tenants. Our building services division is growing, which is where we help people plan their asset enhancemen­t, a core line of our business. We also want to incorporat­e more technology, in line with our vision, while rememberin­g that people are as important as technology. In the Middle East, if you treat people with respect and politeness, and you maintain contact, business will come.

WHEN WE STARTED IN 1985,

we have been involved in have turned out to be a success. We recently finished the developmen­t of 440 villas, all of which have been sold. While Dubai’s market has an oversupply, there is also huge latent demand. In Dubai, there are many longterm expats who have not entered the housing market. There is a reasonably large population of first-, second-, and third-generation expats whom would be interested in buying properties if they could obtain long-term visas. By pushing certain visa policies, the government can stimulate demand. In general, one has nothing to worry about if one builds a property right for the market. For example, though low-income housing is not regarded as an attractive sector, it is extremely needed; if harnessed properly, it can be profitable, too. Some developed markets have done great in affordable housing because it can appeal to institutio­nal investors as a long-term way to secure income. Moreover, it serves the public. Dubai’s dynamics of affordable housing are different because there is no large local population here. There still is a need for affordable housing as the city develops, because we have a transient working population here that serves and runs the city. It should not be difficult for a nurse, for example, to put down roots here and buy real estate. As Dubai grows and develops, it needs a real community not here on a transient basis.

ALL THE PROJECTS

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