Real Estate Investment, Asset Management
Article | May 5, 2023
As the global social and economic consequences of the COVID-19 pandemic emerge, indoor air quality, for example, has emerged as a top priority for keeping building occupants safe and healthy. Workplaces and remote work arrangements are being reimagined by business owners, while retailers and restaurant operators continue to convert their physical spaces for social distancing or, in some cases, for an entirely new use.
In this context, the expectations of asset owners from office, retail, hotel, and residential users have grown exponentially, and there is no shortage of new challenges and opportunities for commercial landlords.
Sustainable environments with ergonomic furnishings, biophilic elements, natural daylight, and living green walls are meeting demands for lower operating costs, increased performance, and improved occupant well-being, as are healthy buildings with natural ventilation, enhanced thermal comfort, improved air quality, and green purchasing policies. One of many innovative examples is a manufacturer of smart windows that tint automatically based on outdoor and indoor conditions, improving people's health and wellness while lowering energy consumption.
The digital twin — essentially a virtual copy of a building — is another example of how technology is being used to transform the real estate industry. By leveraging data analysis, building simulation, the internet of things, artificial intelligence, machine learning, and robotic process automation, digital twins have the potential to help building owners and operators bridge the physical and virtual worlds. The digital twin's resulting assessment, calibration, modelling, and scenario planning capabilities enable more efficient operations, reduced maintenance, increased energy savings, and real-time decision-making support for the physical building. The health of a building will be considered an amenity by its occupants as landlords take steps to improve air quality inside their buildings through smart building.
Overall, healthy buildings improve occupant satisfaction, leasing rates, and building value. Buildings with better air quality and more natural light have lower absenteeism and, as a result, lower turnover and higher worker productivity, resulting in financial savings and increased value for the business. The same advantages apply to retail and residential buildings.
Landlords and commercial tenants are discovering that recognized standards, such as WELL and Fitwel, are enabling an effective framework and leading practices in the ownership, occupancy, and management of their physical environments as they develop, implement, and manage healthy building efforts.
A sustainable and healthy building prioritizes resource efficiency (energy, water, and materials) while enhancing positive building impacts on human health and the environment. Building owners and occupiers who are proactive in furthering these efforts are not only building resilience now, but also preparing for what comes next and beyond.
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Real Estate Advice, Asset Management
Article | May 9, 2023
Real estate technology has revolutionized the real estate business. Most real estate developers today use technology to meet the needs of customers who are becoming more knowledgeable, give them the best service possible, and remain competitive.
Real estate agents are turning to Customer Relationship Management (CRM) software to manage all communication and interactions with customers and prospects and improve operational efficiencies.
What is a real estate CRM? A quick glance
A CRM system for real estate is a system that helps manage all communications with leads and clients. It functions as an online database, allowing you to manage your contacts while saving time and effort on manual data entry. Email and text messaging, lead tracking tools, and click-to-call capabilities are some of the key features you will find in the top real estate CRM.
A productive realtor must multitask, including keeping the database of clients, locating properties, communicating with clients, using websites and social media platforms to advertise and communicate with new clients, etc. This is where a CRM software plays a critical role because time is money and CRM software allows saving a considerable amount of time, minimizes effort and resources by sales automation, inventory management, automating contacts, managing customer interactions, and performing other data operations.
Before selecting a comprehensive CRM solution for your real estate business, you should consider a few key aspects and features
Sales process automation
Manage your sales pipeline with end-to-end sales automation features that let your sales team focus on tasks that bring in more money while routine tasks are automated.
Inventory Management Platform
A cloud-based dedicated digital inventory management can let you remotely manage vast quantities of inventory across various projects, buildings, floors, and units. You can use the automation feature to organize and sort a large amount of real estate inventory, as well as to ensure that inventory is selected based on the buyer persona and criteria.
List management
Your CRM should allow you to personalize your data in order to generate lists based on transactions, dates, offers, events, and incentives
Automate tasks and workflow
Realtors must be able to quickly respond to property queries without having to browse through their inboxes. Once a client interacts with an agent, the system initiates real-time push alerts, sends follow-up emails or texts, manages calendars, and enables the customer to select other preferred contact channels
Post sales automation
Using CRM, the sales team could maintain customized payment schedules based on projects, send automated payment reminders, handle inventory payments, create and share documents online relating to bookings.
Seamless cross-platform accessibility
The CRM software must provide cloud access in addition to phone, desktop, and any smart device. Compatibility with other platforms — compatibility with products like as Microsoft Office and Google Docs is of tremendous assistance, so include it to your list of must-haves. In addition, ensure that the system is user-friendly for individuals who may lack technological expertise.
Feedback and reporting
The core of your company's success is gathering client feedback. A software that provides insights into your data through centralized reporting and real-time client feedback is ideal for making quick decisions that help you improve sales and boost customer engagement and retention
Scalability
Scalability is another factor to consider; will you have the flexibility to simply add users as your business grows? You need a CRM platform that is versatile and reliable, able to handle ever-growing business operational efficiencies and not suffer from regular system downtimes, lags and data losses.
Conclusion
Whether you are a seasoned realtor or a newcomer, investing in CRM software that provides you with a variety of options for time-and cost-efficient customer data management has become critical. Despite the wide variety of CRM options available on the market, the most important thing is to find the one that is best suited to your specific real estate needs. Once you know what you want, you'll be able to make better decisions about your real estate business.
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Real Estate Investment, Asset Management
Article | May 25, 2023
The belief that green properties bring multiple benefits for both residents and developers is becoming universal. The real estate buyers are realizing the integral role played by the green buildings in minimizing carbon emissions and contributing toward one of the biggest global agendas – Climate Change. Across the UAE, some landlords are evaluating the cost and the benefits of making their portfolios greener to meet the expectations of the property buyers as well as the tenants who are becoming more environment-friendly.
Rising international focus on climate change, Conference of the Parties (COP26) summit and UAE’s net-zero initiative to minimize emissions and pledging to invest almost $165 billion in clean energy by 2050 are the other major reasons for the landlords to construct green buildings.
Covid-19 has created an urge for employee safety to ensure they feel comfortable coming to the office. To take employee safety to the next level, corporations are choosing green properties to prioritize employees’ well-being and adapt to their occupational strategies and achieve their sustainability goals.
What is a Green Building?
The World Green Building Council (WGBC) defines a green building as – “a building that, in its design, construction or operation, reduces or eliminates negative impacts, and can create positive impacts, on our climate and natural environment.”
Some of the features suggested by WGBC which make a building green include –
Efficient use of energy, water, and other resources
Use of renewable energy, such as – solar energy, pollution, and waste reduction measures, and the enabling of re-use and recycling
Good indoor environmental air quality
Use of materials that are non-toxic, ethical, and sustainable
Consideration of the environment in the design
Construction, and operation
Consideration of the quality of life of occupants in design
Construction, and operation
Design that enables adaptation to a changing environment
Exponential Rise in the Demand for Greener Properties
There has been a huge rise in the demand for greener and energy-efficient properties not only in the UAE but across the Middle East. As per the Knight Frank – 2021 survey – proximity to green space and good air quality topped the list of location features and are more important to home buyers in the Middle East than their global counterparts. Half of the respondents cited the energy efficiency of their next home as being a ‘very important‘ issue, compared to 42% of global buyers.
There has been a rising demand for green and energy-efficient properties in the UAE. The region is at the pinnacle in the Middle East in the national concentration of sustainable buildings and stands at the 14th spot in the world with 869 green-rated buildings, according to the 2nd edition of Knight Frank’s (Y)our Space report – 2021 which surveyed almost 400 businesses worldwide on their workplace strategies and real estate needs.
This sends a strong signal to the developers and planners to embrace building green properties to attract eco-friendly homebuyers in the UAE.
Reasons for Rising Demand for Green Properties
Here are the top 7 reasons for the rising demand for Green Properties in the UAE
1. Increasing Awareness
The last decade has witnessed a colossal rise in the awareness among the UAE real estate developers and homebuyers about sustainable construction practices and the adverse effects of climate change, rising energy consumption, and carbon emission on their health and life which has significantly increased the demand for greener properties.
The rising awareness about the advantages of green buildings is very evident from the leading studies conducted recently. The research conducted by EcoMENA in 2021 titled – ‘Green Building Trends in the Middle East’ reveals that in the last decade, green building design has become a top priority of real estate developers across the Middle East. The number of LEED-registered buildings has increased rapidly across the region, from 623 in 2010 to more than 2500 in 2020. UAE is ranked among the top 10 countries that hold LEED certifications in the world with Dubai ranked 3rd in the list of cities having the highest number of LEED-certified buildings. UAE has more than 600 LEED-certified projects.
2. Supportive Government Policies
UAE has launched the ‘Net-Zero by 2050 Strategic Initiative’ to reduce carbon emissions and will invest over AED 600 billion in renewable energy to minimize carbon emissions and move the nation towards cleaner energy.
Other initiatives launched by the UAE to reduce carbon emissions which will increase the sales of green properties include – UAE Vision 2021, the UAE Centennial 2071, and the UAE Energy Strategy 2050, which sets a 50% target for clean energy in the country, among others. The UAE government has already established several sustainable development goals which serve as a guiding principle for most upcoming real estate projects in the region.
3. Lower Construction & Operational Cost
Research conducted by the World Business Council for Sustainable Development (WBCSD) reveals that the cost of installing green building features and technologies is significantly overestimated. Many developers perceive that the upfront cost of a green building is, on average, 17% higher than the original cost of a similar traditional building, however, that’s not true.
The research by the U.S. Green building Council (USGBC) reveals the initial cost of a green building is only 2%-3% higher than its non-green counterpart. Moreover, green buildings consume 25%-35% less energy than non-green buildings and have 14% less operation and maintenance costs than their traditional counterparts.
Modern property owners also prioritize renting or leasing green buildings or apartments due to their cost benefits. Green buildings also allow developers to save 20% of the initial construction cost annually by reducing energy consumption. Furthermore, green buildings allow developers to complete large-scale green projects at a much larger scale resulting in more revenues and business expansion.
Using incentive technology such as Virtual Power Plants (VPP) combined with an onsite solar asset will further allow real estate developers to reduce the operational cost and utility cost and explore new models of maximizing income outside of increasing rent and making their properties more attractive for eco-friendly homes buyers.
4. Lower Rents & Service Charges
Green properties are a win-win situation for every stakeholder. Due to their lower construction cost and energy consumption, green buildings have minimal operational costs. This is indeed good news for the homeowners and tenants as lower operational cost of the building leads to a reduction in their energy bills, service charges, and rents.
The lower service charges and rents often result in higher resident satisfaction and occupancy rate for the landlords and developers.
5. The rise in Environment-friendly Buyers
Rising awareness about the adverse impact of emissions on the health of humans as well as on the environment has attracted a number of homebuyers toward green properties. This is encouraging real estate developers to construct more green properties to foster quick sales.
Two years ago we had to convince property developers to go green and think about efficient energy. The majority didn’t know what ‘green’ meant and assumed there was an extra cost attached. Now developers want to go green and some are achieving Leadership of Energy and Environmental Design (LEED) certification, an internationally recognized green building rating system. Many large developers are creating their own green design guidelines to be followed by smaller developers building on their plot of land.”
Khalid Bushnaq, CEO of Energy Management Services (EMS)
There has been an exponential surge in buyers prioritizing green properties as they support a cleaner environment for future generations.
6. Investors Prioritizing Greener Properties for Letting & Sales
There has been a rise in the investors and businesses prioritizing the green credentials of a property while making their purchase decision. This will indeed spur their saleability and rentability in the coming days. To cater to the demand of modern and environment-friendly buyers, real estate developers are coming up with greener properties and are evaluating the cost and the benefits of greenifying their portfolios.
7. Rising Sustainability Concerns
There have been rising concerns about sustainability among both residential & commercial clients. Corporates across the globe are showing great interest in going sustainable and prioritizing sustainable buildings for their offices.
According to the 2nd edition of Knight Frank’s (Y)our Space report, “40% of firms have set a net-zero carbon target and, of those, 77% are aiming to achieve this by 2030. 87% of firms surveyed had less than half of their current global real estate portfolios either ‘green’ or ‘sustainable’.
Rising sustainability concerns among the buyers will accelerate the sales and rents of the green properties and will play a crucial role in minimizing the emission rate of the UAE.
Summary
Here is the summary of the article –
There has been a rise in the attractiveness of greener properties among buyers across the UAE to reduce carbon emissions and move towards a healthy lifestyle.
Climate change, COP 26, and UAEs investment in clean energy by 2050 have been the major drivers in raising awareness of green properties
Along with the residential, the commercial sector is also prioritizing moving their offices to green properties to prioritize employee’s safety and adapt to their occupational strategies
A Green building is a building that, in its design, construction or operation, reduces or eliminates negative impacts, and can create positive impacts, on our climate and natural environment.
The Knight Frank – 2021 survey on Middle East buyers reveals that proximity to green space and good air quality topped the list of location features. Half of the respondents considered the energy efficiency of their next home to be a ‘very important’ issue, compared to 42% of global buyers.
UAE is ranked 14th in the world with 869 green-rated buildings
The top reasons for the rising demand for green properties are as follows
Increasing awareness
Supportive government policies
Lower construction & operational cost
Lower rents & service charges
Increase in environment-friendly buyers
Investors Prioritizing Greener Properties for Letting & Sales
Rising sustainability concerns among the buyers
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Home and Design
Article | August 26, 2021
Considering a remodeling project? Before getting started, establish a list of return on investment (ROI) goals, because not all home improvements are created equal. Some add value to the home that can be recouped when selling, while others may be nice to have but are unlikely to raise the home's asking price. Anyone who wants to focus on home improvements that will pay for themselves when selling the home should know which projects to avoid. Read on to learn about three home improvement projects with a strong return on investment.
Upgraded Landscaping
For homeowners looking for a better price when they sell, it's hard to go wrong with landscaping. This is one of the few home improvements that typically yields a positive return when selling the home. On average, homeowners can recoup 150% of what they spend updating a home's landscaping.
Since curb appeal is a huge factor in selling a home, choose improvements that can be seen from the road for the best return. Resodding or reseeding a lawn is a project that typically provides good returns. In an arid climate like Nevada, consider landscaping with native plants, xeriscaping, and other eco-friendly desert landscaping options to reduce water usage and maintenance requirements.
Adding new trees to the landscaping can pay off now and at the time of sale. Trees provide shade and natural cooling, which can take a chunk out of power bills. When selling, trees add between $1,000 and $10,000 to the selling price of a home.
Creating a Dazzling Entryway
Continue the strong first impression by creating a welcoming space in the entryway of the home. Upgrading to manufactured stone veneer has a return on investment of around 96%. The improvement is relatively simple but makes the front door and the surrounding area more dramatic.
Even small improvements can have a big impact. Upgrade to a metal door or one with small windows that let in additional light. Find upgraded house numbers that are visually appealing and easy to see. This often costs less than $100 but can improve the look and feel of the entry area and practically pay for itself when it's time to sell.
Minor Kitchen Remodeling
The kitchen is the heart of the home. This is the room that is one of the top choices for home improvement projects. However, contrary to what one might expect, huge kitchen overhauls don't always yield a high ROI. In fact, less costly improvements typically have a better payoff. Small projects that can dramatically improve a kitchen include:
Repainting
Refacing the cabinets and adding updated hardware
Replacing countertops
Upgrading to more energy-efficient appliances
Choosing more energy-efficient appliances is an upgrade that can start repaying itself right away. Other improvements are likely to increase the price of the home when it sells. However, on average, kitchen remodeling projects only bring in 77% of their cost when it's time to sell. Because of this, homeowners should focus on upgrades that improve their quality of life and what they are likely to get back for their investment.
Some common mistakes can reduce what a homeowner will get back from a kitchen remodeling project. Investing large amounts of money on items that will need to be replaced again in a few years is unlikely to provide a positive return. Choosing items that are too high-end can cause them to clash with the look and feel of the rest of the home, which could turn buyers off.
Improve Daily Life and ROI With These Home Improvement Projects
Most home improvement projects do not pay for themselves in full when selling the home. Rather, they are changes that make the home worth more to the owner now, that have the bonus of a price increase when you sell the home. The right home improvement project can make any house feel like a new construction home.
Homeowners should look to areas that will give them the most mileage when picking updates for their homes. For instance, old kitchen cabinets can make the room feel dull and uninviting. Refacing with a bright new finish can make the kitchen feel like a brand-new room. Adding low-maintenance shrubs to the front yard adds visual interest that can be enjoyed right away. Projects that require special permits could raise questions during a home inspection and potentially reduce the home's value—but properly permitted additions may let homeowners list a home with an extra bedroom or bathroom.
Choose the updates that will provide the most meaningful benefits, both now and at the time of sale. By making the home inviting and attractive, sellers are more likely to be able to name their dream price.
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