As part of its five-year strategy – which is part of its Vision Realization Program (VRP) for 2021-2025 – will feature 13 new construction sectors, including real estate.

The new strategy was unveiled by HRH Prince Mohammed bin Salman bin Abdulaziz Al-Saud, the Crown Prince, Deputy Prime Minister, Chairman of the Council of Economic and Development Affairs and Chairman of the Saudi Arabia Private Investment Fund (PIF).

The fund plans to grow its assets under management to US$1.07 trillion by the end of 2025, and add USD 320 billion to the Kingdom’s non-oil GDP.

A core part of the new strategy is to focus on funding new human features; improving quality of life, the driving environment, housing, and overall economic sustainability.

The Crown Prince said the strategy will act as a roadmap for the fund over the next coming years and help contribute to the Kingdom’s Vision 2030 strategy.

HE Yasir Al-Rumayyan, Governor of the PIF said, “Up to the end of 2020, we were able to triple assets under management to nearly $400bn, create 10 new sectors and generate 331,000 direct and indirect jobs.”

He emphasised the three main pillars of the fund, including investment in local sectors, including real estate and major development projects.

The other sectors that will see investment include healthcare, utilities and renewables, telecoms, media and technology, food and agriculture, automotive, transport and logistics, aerospace and defense, construction and building components, entertainment, leisure and sports, financial services, mining, and consumer goods and retail.

The coronavirus pandemic has changed a great many things; not least of which is how real estate deals get done.

Global lockdowns and travel ban virtually eliminated property viewings overnight, resulting in many estate agents and developers looking to alternate solutions. Fortunately, technological innovations exist to not just get around this new normal, but in some ways make buying and selling property easier, and more efficient.

Successful agents then need to increasingly familiar with digital transactions, platforms and technologies, all while focusing on tools that help them make new relationships with potential clients. That means 360-degree virtual tours of properties and upcoming projects, live streaming for construction updates, online inventory and design selection, as well as online payment and document signing.

Many UAE companies are leading the charge in embracing new technologies, such as Meraas and Damac properties. Both have rolled out virtual tours, as a substitute to physical viewings to entice buyers. While virtual tours are nothing new (they have been available in some way shape or form for the last fifteen years) only recently have they been adopted out of necessity.

As proven by sectors outside of the real estate, buyers and sellers will gravitate to companies that have the best tools, ones that deliver immersive and engaging customer experiences. And 360-degree virtual tours saw overwhelming customer interest during the lockdown.

While these types of viewings are non-conventional, there’s no disputing their usefulness in a market like Dubai – where a majority of buyers come from around the world.

This is just one of the many ways that technology has changed consumer interaction in the real estate market.

Bahrani private equity company, Investcorp has acquired 1,854 multifamily residential units in the US, totaling USD 330 million. According to reports by the investment company, the new acquisitions have a 96 percent occupancy rate.

A KEY FOCUS ON THE US MARKET

The investment is across three popular suburban markets in America, it’s also not the first time the Bahrani alternative investment company has bought into the US market. In a separate transaction, Investcorp recently sold over $1 billion multifamily homes across the US real estate market.

The new units are in the three US cities of Atlanta, Georgia, Baltimore, Maryland, and Jacksonville, Florida. According to Investcorp reports, the units include a range of amenities, including swimming pools, fitness centres, clubhouses and 24-hour controlled access entry.

All of the properties are also in what the company describes as “desirable neighbourhoods” with close proximity to major transportation and employment hubs.

ACTIVE FOREIGN INVESTMENT

The Bahraini company is one of the most active foreign investment companies in the US, following its first inroads into the country in 2014 when the company narrowed its focus to multifamily and industrial real estate.

The number of properties owned by Investcorp in the US now totals more than 14,000 units.

Discussing the recent investment, Investcorp Real Estate product specialist Khulood Ebrahim said: “We are excited to further enhance our significant multifamily real estate footprint in the US with these stable, highly-occupied properties in key suburban areas. Our latest acquisitions are consistent with our defined investment approach and build upon our long history of investing in US multifamily real estate.”

 

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Recent reports by listings portals Bayut and Dubizzle show that 53 percent of residential sales last year were off-plan sales.

Indeed, according to the Dubai Land Department, the total number of properties bought in 2020 totaled $7.4 billion (AED 27.2 billion), of which $3.9 billion (AED 14.4 billion) were off-plan properties, while $3.4 billion (AED 12.8 billion) of sales accounted for ready property deals.

Meanwhile market experts JLL said that 53,000 homes are due for handover in 2021, which represents a 9 percent increase on the total stock at the end of last year.

Overall, however, - and in line with the previous two years - 2020 saw a decline in rental and sales prices across the emirate. Over the past 12 months, further market concerns have centred upon a fear of oversupply, and the impact of COVID-19 on the industry.

Indeed, while key communities in the city reported a price decline of between 2 and 10 percent, while rents decreased between 9 and 17 percent in 2020. There was significant growth in the affordable housing sector, with 332 sale transactions in Jumeirah Village Circle in the second half of 2020, the area also remained the most attractive area for renters on a budget, according to the report. Meanwhile, Dubai Marina was the most popular area for luxury sales over the same time period - accounting for 526 sales.