ETICA Y POSTMODERNIDAD
3. A manera de conclusión
market buoyant, and the investors flocking.
Construction, Ar
chitectur
e & Real Estate
The UAE property market will continue to be demand-driven until at least 2010 believe some sources, in line with the country's population growth - a year-on-year increase in Dubai alone of 7.6 per cent. Forecasts suggest that Dubai's population could reach over two million by 2010 from the current estimated 1.5 million.
T
he UAE property market will continue to be demand-driven until at least 2010 believe some sources, in line with the country's population growth - a year-on-year increase in Dubai alone of 7.6 per cent. Forecasts suggest that Dubai's population could reach over two million by 2010 from the current estimated 1.5 million."According to government statistics, 800 people per day are arriving to live and work in the UAE," confirms Diana Magariu, managing director and partner at Key One Real Estate. "That's 292,000 people a year. Assuming that 50 per cent are construction workers, that still leaves over 146,000 new arrivals who will need somewhere to live. Many Dubai residents also realise that the cost of a monthly mortgage can be the same as paying rent. Estimating this group as five per cent of Dubai's current
population, that is another 80,000 buyers. This means a potential demand of over 226,000 new homes per year."
Opportunities abound
The phenomenal success of Key One Real Estate is further testament to the massive opportunities within the property sector. Established two years ago by Magariu and her business partner, Igor Akhtyamov, the company offers property-related investment consulting, sales, rentals, portfolio
management and interior design. With diverse team and over 1000 properties on its books, the firm has become a force to be reckoned with in a relatively short period of time. "Our name reflects our intention to be the primary key for our clients to access thousands of properties in the UAE," explains Magariu.
And in a market where demand often leads to complacency among real estate companies, developing customer loyalty has been a key success factor for the company. "We are aware that we are one of the thousand other real estate companies on the market vying for the same business, but this just reinforces our strength and confidence in how we are running our business, "Magariu asserts. "I strongly believe that the key to differentiation is through one's personal approach and the additional services you provide. We are confident about turning potential clients into loyal customers. Our philosophy is simple: treat your clients as you would like to be treated."
Planning for the long-term
It is the same philosophy that will take the company into the future. "We have aggressive plans for expansion, but it will be through the quality of our services rather than simply volume," says Magariu. "We are building our business for the long-term; to be a recognised and respected name within the UAE real estate community."
How likely is it that Dubai's real estate bubble - as it is often referred - will burst sometime in the future? For Magariu, it is more an issue of shifting market demands. As the market matures, the investment opportunities to make a quick kill are less - with returns for off-plan units expected to remain at current levels of around 12 per cent for the time being. Still, with the international average of returns at around seven to eight per cent, Dubai will continue to be an attractive investment option for both local and foreign investors, observes Magariu.
"There is also a growing focus on the secondary market," she observes. "End users are increasingly starting to evaluate ready properties, reflecting the price increases we have seen on primary market, and the touch-and-feel aspect of walking into a completed property which could become their home."
The greatest challenge will be how infrastructural development will keep up with demand. "Power and water supply is one of the biggest challenges facing Dubai's real-estate sector," observes Magariu. "Dubai's power and water demand is currently rising at 20 per cent and 15 per cent respectively every year, while the population is expected to grow 30% to two million people by 2010." Reports suggest that the UAE will invest a further $61.2 billion to boost utilities capacity by around 60% by 2011, she continues.
"As more and more real estate and tourism projects come to completion in Dubai and as the population surges, power demand is predicted to double over the next five years, the government's water and electricity authority have a big challenge on their hands."
Equally, a concern recently voiced by Dr. Sultan Al Jaber, CEO of Abu Dhabi's US$22 billion green development, Masdar City, was the urgent need to reduce power and water demand by adopting higher levels of energy efficiency in buildings - which account for around 30 per cent of global energy consumption. Magariu is optimistic about new developments in this respect.
"Dubai will go green in a big way by this year," she concludes. "New rules and regulations are planned to come in to effect whereby all buildings in the city will have to comply with internationally recognised environmental standards. The launch of Dubai's Middle East Centre for Sustainable Development will initially help companies within the city, and later also outside developers, to adopt environmentally-sound practices, with a view to a sustainable future within the real estate industry."
Tel: + 9714 338 9606
www.keyonerealestate.com
202 Best of Dubai