Pakistanis among top five nationalities buying property in Dubai
4 stars based on
Schon Propertieswhich is developing a Dh5 billion master-planned community within Dubai Investment Park, is diversifying its development portfolio by expanding its hospitality and retail assets that will multiply its recurring income and make the company financially sound and its business oil price in pakistan dubai property sustainable.
The move mirrors portfolio diversification strategy of major property developers — Emaar Properties, Aldar Properties, Dubai Properties Nakheel and Damac Properties — that helped them expand cash-generating assets and make these companies less vulnerable to external shocks and economic slowdowns and make them more profitable and sustainable, after the financial crisis. All these developers now have sizeable commercial, retail, hospitality portfolio, in addition to built-to-let assets — that fetches recurring income and makes them less dependent on the built-to-sell properties.
Schon, one of the victims of the crisis, is also following the similar path for its future oil price in pakistan dubai property and sustainability. The Dubai-based developer is also considering the possibility of floating the company in one of the international stock markets to expand its shareholder base, a top company official told Gulf Property.
It was launched inwith the clusters of eight-storey buildings in seven zones at Dubai Investments Park due to be finished by The delays have been attributed to road widening, the economic downturn and securing utility clearances. In recent months, the company has mobilised resources to deliver the project, which is on track oil price in pakistan dubai property completion in June — ahead of the World Expo We are just a station away from Expo site as the new extension of Dubai Metro will pass by our project.
Schon Properties last year delivered the Schon Business Park, a 1. In view of the lower oil price, what is your view on the overall economy of the UAE? Do you think the economy will suffer due to low oil price?
Its economic growth is powered by vision. Therefore the price of oil has little or no impact on Dubai economy — which is well diversified. Dubai is no longer dependent on oil. In fact long before the drying up of oil, Dubai had begun to diversify its economy and prepared it for the post-oil growth.
The economy is moving well and I believe mega events such as the Expo will drive economic growth. The heavier the traffic, the better is the performance of the economy. Higher traffic means more people on the move, more cars on the street, more spending on fuel or other expenses. Higher traffic is a reflection of increased mobility. So, the increase in traffic means increased public mobility and more people on the move. Oil price in pakistan dubai property is your view of the overall real estate market condition?
It looks like property prices and rents are still declining. The market is well regulated now. So, there is a trust factor built in. Market fluctuation is part of the economic cycle. The market is no longer driven by speculation.
Also the market has moved from luxury and super luxury segment to the mid-market to affordable homes. Over the last 15 years, developers have been delivering luxury properties, so much so that the demand for luxury properties is less. That segment might be under pressure oil price in pakistan dubai property to lack of demand.
But demand for other segments is still high. So, the demand is more on the affordable homes. Obviously, prices of affordable homes are much lower than those in the luxury segment. There is a general perception that the property prices are on the lower side. We see a lot of movement in the market. The ticket size might have gone down — due to the lower value of the affordable homes. However, a lower price of assets in not a bad thing. In fact, affordable homes offer a better ROI than those in the luxury segment.
For example, a Dh, investment in a one-bedroom or two-bedroom apartment could give an annual rental yield of Dh80, at least. Which means you could get your money back in less than 9 years! In Dubai, a residential property usually fetches 8 per cent rental yield, or ROI. Although the same is lower in commercial properties — about 5 per cent — it is still good as offices usually bring a lot of footfall and if tenants are reputed brands, then the value of the property appreciates on its own.
So, I do not think downturn is a bad thing. You have plenty of opportunities during slowdown — you just need to invest in the right property and at a right location. For us, the next phase of growth will be driven by Expo and the associated business surrounding the 25 million tourists coming in that year.
Hospitality will be a major driver for Dubai — which needs more than 60, hotel rooms, in addition to the 85, rooms oil price in pakistan dubai property serviced apartments currently existing. We are dedicating 2, units of the 4, apartments for the hospitality industry.
They will be hotel apartments and managed by international hotel operators. As a developer, we will retain a third of the 2, units for ourselves — to increase our recurring income. So you are diversifying your portfolio? Is that a strategic direction for future? As a developer, I do not want to put all my eggs in one basket. Besides, we need to build our rental portfolio to boost recurring income.
So, if an investor buys one of the service apartments, say for example for Dh1 million, he could easily count Dh, per year, based on a 70 per cent occupancy calculation. So, through hospitality portfolio, we are able to offer a better value for investors. You have already delivered Schon Business Park — your first major property. Could you kindly describe the facility? The ground floor consists of furnished offices and 90, square feet of retail area, catering to a population of 60, We have successfully delivered it last year and buyers are using it while others are preparing to set up their facilities.
It was a commercial success for us. However, as a developer, we feel that we have offered a greater value to our customers who oil price in pakistan dubai property benefit from rental growth as well as capital appreciation. This will serve businesses well as demand will pick up as we move closer to the Expo Your biggest investment is a mixed-use development at the Dubai Investment Park.
Yes, it is our biggest project to date. However, if you ask me next year, the value will be much higher, due to fast capital appreciation. We are preparing to hand over keys to our first batch of home buyers in April when the first project is delivered.
Then we will keep on delivering project by project till the entire project is completed by June — ahead of the Expo By then, the new Dubai Metro line will start operating and our residents could just walk to the adjacent metro station. In oil price in pakistan dubai property of location, we are ideally located — just one metro station away from the Expo site and a few more stations away from Al Maktoum International Airport — which will become the largest airport in the world when completed.
The price of our property will continue to appreciate as the air traffic at the new airport picks up — and oil price in pakistan dubai property Emirates Airline shifts its base to the new airport by Ours will be one of the most wanted residential and hospitality community for all.
We are looking mostly at family tourists. The complexes will have a day care centre — where children could be taken care of — while the parents oil price in pakistan dubai property themselves busy. Having said that, the hotel apartments are also ideal for business travellers and we are going to see many of them staying with us due to the close proximity to the new airport.
The community will also havesquare feet retail space that creates a shopping mall with convenience and lifestyle stores, so that the residents and tourists do not have to go out of the community for essentials. As a developer, we are well capitalised to deliver the master development project, regardless of the sales progress or lack of it.
Therefore, no one should now worry about delays in delivery. If at all, there might be a six-month variation due to construction and logistics — but not due to us or payment issue, which is oil price in pakistan dubai property in control.
As a long-term player, oil price in pakistan dubai property are a firm believer oil price in pakistan dubai property the Dubai success story and will continue to be part of the story. Therefore, oil price in pakistan dubai property are currently reviewing our long-term growth strategy and there are three ways to oil price in pakistan dubai property into our future. One of the obvious choices is to grow organically — which we will grow anyways. The other option would be to acquire lands and grow in partnership.
However, we are also considering offering our shares to the public for them to become part of our growth story. We are still looking at the options and will make a decision when the time is right. However, hospitality sector will be a major growth area for the group, simply because Dubai will continue to be a very popular tourism destination. The emirate needs more hotel rooms and we want to contribute to that vision of the government.
A charismatic leader, trainer, marketer and an out-of-the-box thinker, Noorul Asif, the Chief Operating Officer of Schon Properties wears several hats. A wealth of experience pooled from his diverse professional background has honed Asif into a well-rounded individual with powerful managerial skills and armed him with an understanding to work on multidisciplinary platforms successfully.
Having charted many paths, the man who began his career in IT has eventually settled as a real-estate industry leader with a decade-long association with the sector behind him. His decade-long association with Schon Properties witnessed his quick growth in real-estate, while his analytical navigational skills helped the company explore new avenues. From creating a formidable team to bringing on board new contractors, Asif has had his finger in every pie.
He was also the man behind successfully raising the first institutional money for Schon Properties. Currently, he is in the process of devising oil price in pakistan dubai property team structure in sales for the company that will serve as a mass production assembly line.
Like most of his previous endeavours, Asif has taken an innovative route in coming up with a concept never practiced in UAE real-estate industry before. Using his vast knowledge of IT, combined with his role as a consultant, Asif has used his skills to propel his way within the real-estate industry. Suite yourself with iSuite! The iSuites oil price in pakistan dubai property smart modern living of functional and futuristic facilities. The full-serviced hotel apartments are ideal for upwardly mobile couples or small families coming to Dubai on a short-term corporate assignment that allows the head of the family to work or get himself trained while the spouse or family could enjoy quality time amid affordable luxury.
Investors and buyers could purchase a hotel suite or a service apartment suite that will be managed by international branded chain hotel operators and offers buyers a oil price in pakistan dubai property income of 12 per cent or more.