Designing smarter real estate portfolios in times of uncertainty

In times of uncertainty, maintaining functional and efficient real estate is
key. This is made more crucial nowadays in light of the fast-paced
advances in technologies and evolving consumer behaviors disrupting all
aspects of real estate. From these stems the need to develop proactive
strategies that focus on increasing the value of your real estate portfolio
and generate annual and recurrent cash flows.
Obstacles to achieving the optimal performance of real estate portfolios are
varied. Within the region, industry players have held onto large land banks,
most of which are undeveloped and situated in tertiary locations. To
develop the necessary infrastructure and supporting amenities requires
additional financing and time. In some instances, the larger pieces of land
have taken longer time to sell and have therefore depreciated in value.
In addition, given the traditional nature of doing business which relied on
family businesses or holding companies, real estate was not considered a
core function of the company. Therefore, formulating and developing
appropriate strategies, let alone making real estate decisions, has been
complex. This is made more difficult by the limited availability of market
wide and asset specific data, making it more challenging to understand and
manage the property effectively.
On a general level, one of the key considerations to ensure your real estate
portfolio's profitability is being able to anticipate future market conditions.
'Future-proofing' your portfolio will allow for the flexibility needed when
responding to uncertain market conditions.
Much of this rests on having timely, accurate, and reliable data that can be
harnessed for actionable insights. This includes real-time data and longterm
market forecasts on macroeconomic and demographic indicators,
market performance, and property performance. Connecting these data
points together will assist in predicting future market directions more
accurately.
On a more granular level, a key strategy to overcoming uncertainty is
diversifying your portfolio. When the number of uncorrelated assets in a
portfolio increases, the variance of the portfolio, in other words the risk,
decreases.
Traditionally, Middle Eastern investors have been risk-averse, investing in
more stable locations and asset classes such as offices, hotels, and retail
centers. However given recent market conditions, we see investors moving
up the risk curve and diversifying their portfolios by incorporating alternative
assets such as industrial properties. Data shows that Middle East investors
spent more on industrial and logistics facilities ($315 million) than on retail
malls ($155 million) in the first half of 2019.
To unlock the full potential of your property portfolio it is also imperative to
reduce costs through proactive property and asset management. Unlike
other investments, investing in real estate means you can actively manage
each of your assets including regular maintenance, tenant and lease
management, improvements to efficiency and productivity, among other
elements. This ensures the asset's longevity and increases the return on
investment.
Beyond closely managing and diversifying your real estate assets,
employing structured real estate financing solutions, other than the
traditional model of relying on bank lending, will allow your portfolio to grow
even in uncertain times. This may include mezzanine debt financing versus
equity, sponsorship and joint-ventures, peer-to-peer lending, and
specialised portfolio loans.
In order to optimize your portfolio value, minimise risk and maximise
returns, a strategic action plan incorporating the above will need to be
developed. Ideally this aligns expectations from your real estate with the
wider business needs and objectives.
A key initial step is evaluating the current portfolio and understanding any
budgetary or resource constraints to expansion and diversification. This
includes identifying sources of finance for future developments. From there
emerges the need to establish a long-term goal and identify and prioritize
opportunities that ensure portfolio diversification.
Once in place, developing a plan based on a set of measurable action
points, development timelines, and processes is crucial. The final stages
are implementation and continued evaluation and improvements under a
proactive property and asset management strategy. Ultimately, this will
ensure a continuous revenue stream and an increase in the overall value of
your portfolio.
Shaikhani Group said, this coming year would be the best year for the
Dubai. Reason is Dubai 2020 expo is coming. It will be a boom for every
industry. Moreover, they are trying their best to increase the productivity of
theirs projects so it will hand over by the end of this year….
Shaikhani Group explained, Dubai is known by doing things on right time,
they come up with those ideas where people think‟s it is not possible, long
time ago Dubai was a desert, now no one can say this was a desert.
People love to visit Dubai for holidays, because all facilities are there
including security which is a basic necessity of life.

https://www.khaleejtimes.com/business/real-estate/designing-smarter-realestate-
portfolios-in-times-of-uncertainty

#shaikhani #memongroup #shaikhanigroup #dubaiestate #gardeniaresidency #gardenia #goodreturns #newhouse #apartment #Investment #Rental #Secure #ROI  #Realtor #Homeforsale #Househunting #Broker #Newhouse #Forsale #Property #Listing

Government announces to open construction sector from 14th

Prime Minister Imran Khan Friday announced the opening of construction sector from April 14 to help daily wagers and labourers affected by continued lockdown due to COVID-19 outbreak to earn their livelihood.

Talking to reporters here, the prime minister said the government’s decision taken in coordination with the provinces is also aimed at reviving economic activities in the country, which are badly hit by the situation arising out of the coronavirus outbreak. He also announced various measures for the construction sector, including tax incentives, waivers and subsidies in the areas of sales tax, capital gains tax and withholding tax.

Giving details of the decisions, he said those investing in the construction sector during the year 2020 will not be asked any queries about the source of their income. Secondly, he said, the government has decided to bring the construction sector in the fixed-tax regime under which the rate of tax on land will be levied on the basis of per square yard and per foot. He, however, said those investing in the prime minister’s housing programme will be given 90% tax rebate and they will be required to pay just 10% of the total calculated tax amount on their projects. He said it has also been decided to waive-off withholding tax on cement and steel sectors. Besides, he said, in coordination with the provincial governments of Punjab, Khyber Pakhtunkhwa and Sindh, it has been decided to bring the sales tax in construction sector to 2% through consolidation of all taxes.

The prime minister said that capital gains tax on the sale of a house is being done away with. He also announced a Rs 30 billion subsidy for Naya Pakistan Housing Programme, adding that further subsidy will be given on its progress. He said the government has decided to give construction sector the status of an industry. It has also been decided to establish the Construction Industry Development Board (CIDB) to help promote construction industry in the country, he added.
The prime minister said all the decisions regarding the COVID-19 are being taken in coordination with the provinces. However, he said, any of the provinces can make changes as per their requirements.
He said since the Rs 1200 billion stimulus package announced by the federal government to provide financial relief to the poor and daily-wagers in the wake of lockdown due to coronavirus outbreak, the government has decided to open the construction sector. He said with the agriculture sector, which is already open, providing jobs to people in villages, the opening of construction sector, the main source of employment in urban areas, is very much needed.

The prime minister said besides the Rs 1,200 billion package, the government has launched an Emergency Cash Relief SMS Service under which Rs 150 billion will be distributed among the poor and the needy.
About 10 million people have so far applied for the financial assistance through the SMS service, he added.
The prime minister said the decision to open the construction sector has been taken because of the fact that the situation of coronavirus cannot be predicted. “We cannot predict what the situation will be after two or four weeks,” he remarked.
He said with medical sector, food processing industry, take-away restaurants and goods transport already open, the opening of the construction sector will bring a big relief to the daily-wagers and labour class. He, however, added that as schools, colleges, universities and wedding halls have already been shut down, the lockdown due to the coronavirus outbreak is continuing in the country.

Imran Khan rejected the notion being circulated on the social media that the spread of coronavirus in Pakistan is low due to strong immunity of its people, and said as there is no final word about the COVID-19, the citizens should take care of their health. He said the situation regarding the lockdown will be reviewed on April 14.

The prime minister referred to the situation after the Spanish Flue which revived back even after reaching its peaks and downs. He also referred to the situation of Chinese city of Wuhan after the outbreak of novel coronavirus and said the government of China had totally locked down the city for two months and provided the people with food and other essential items at their doorstep. “But my fear is that we will not be able to do this, because of our limited resources,” he said, and added that it is the reason that his government has decided to open the construction sector to save the daily-wagers and labourers from unemployment. The prime minister, however, vowed to fight the contagion together as a nation and said all the resources and capacities of the country will be utilized to fight and win the COVID-19 pandemic.

Prime Minister Imran Khan reiterated the stance of not implementing complete lockdown in cities as both Covid-19 and hunger are a challenge for the nation. He said the government cannot confine its around 220 million population to homes. “We are daily deliberating on how to confront coronavirus besides creating activities for the daily wagers and low income people – who are being adversely affected due the virus,” he added.
He said in case a complete lockdown is implemented, the situation in one month will be so adverse that it may result in casualties from hunger. He said whole nation will have to demonstrate utmost responsibility to observe social distancing to contain further spread the virus as police may not be able to control them with force. He said the whole nation will surely defeat the pandemic with unison and unity.

To a question about role of the provinces in announcing package for the construction sector, the prime minister said after the 18th Amendment, the Centre cannot dictate the federating units. He said the federal government elucidated the reasons of opening the construction sector to the provinces and it is now up to them to take any decision. He said Punjab and Khyeber Pakhtunkhwa governments are fully on board on the issue.
Shaikhani Group is really happy with the decision of Prime minister of Pakistan. Moreover, they said it would be really helpful for the labour to get back to work, our Country is not that rich like china and USA where they have a huge budget for the fight of coronavirus, COVID-19 is not easy for whole world. Due to this virus many well established countries are having a lot of issues because their established economy is going down just because one virus, Scientist and doctors working at the their pace to find a solution

Shaikhani Group salutes to all Paramedics, doctors, Army and other people who are working in this current situation where people are very scared for their lives, many people are diagnosed by Coronavirus, some of the people already left this world, many important people are hit by coronavirus such, prime minister of UK, royal family of UK and other important people.

On the other side Shaikhani group is working with World Memon Organization to help the needy people in this situation. On daily basis Mr. Ahmed Shaikhani Senior vice president of Pakistan business council working with the ARY group to help the Pakistani community. They have all already donated a lot of money for the poor.

Furthermore, Shaikhani Group would like to say thanks to Mr. Mohsin Shaikhani Chairman of ASSOCIATION OF BUILDERS AND DEVELOPERS OF PAKISTAN (ABAD) took the stand for the construction industry and raise his voice, where his voice reached to the Prime minister of Pakistan. Next day Mr. Imran Khan Prime Minister of Pakistan took his voice seriously and in return of that reply Mr. Prime Minister has released a lot of benefits and perks for the construction industry.

Fit-out industry expects booming business in 2020

The UAE's fit-out industry is having a busy time with increasing options for
affordable housing, which is inspiring residents to be homeowners.
Coupled with that the Expo 2020 Dubai preparations are giving local and
international businesses an impetus to invest in their UAE operations.
The sector players are very optimistic that business is in for a busy period
in 2020 and beyond. New reforms in long-term visas are enabling residents
to plan and build long-term stay in the region which has given the food and
beverage sector a constant need to innovate both in terms of business and
boosting customer experiences by refurbishing properties. It has been
observed that for many players staying relevant and attractive on social
media for F&B, retail and hospitality outlets seems key to their online
business.
On industry trends, Mihir Sanganee, design director, Designsmith, said
sectors like F&B, hospitality, retail and office still see a steady growth in
demand.
"We can see an increase in demand for home design and renovations with
the rise in number of home-owners. Free-hold properties also contribute to
that trend. There is a big push for being sustainable and refurbishing
existing spaces instead of constructing new ones," he said.
He said the F&B sector is currently driven by the unique concepts and
consumers are more conscious about materials and products used in their
homes and offices - ethically-sourced, natural, recycled and locally-sourced
product are in demand.
"This year we can see design and build studios will drive larger growth with
higher and faster deliverables with a specialist approach from a one stop
shop service."
Established in 2012 to cater to the interior design and fit-out industry,
Design Infinity opines that UAE interior fit-out market is one of the GCC's
fastest growing industries.
Geetha Nayak, managing partner of Design Infinity, said the muchanticipated
growth in the market with regards to 2020 will help all sectors
like commercial, hospitality, hospital, retail and residential projects to grow.
"Dubai and Abu Dhabi are experiencing a robust growth in the construction
and real estate sector, due to which the interior fit-out UAE market will also
be stirred with huge projects and will see an upward trend in the business
overall. The main driver of this sector's growth is the increase in
construction activities, owing to the Expo 2020, in the region. Construction
and real estate sector are the real influencers of growth in the interior and
fit-out market."
A Faithful Gould’s report forecasts the UAE fit-out market to reach $973.4
million (Dh3.4 billion) by 2022. At the same time, the renovations and
refurbishment market in UAE is also on the rise. Experts estimate
renovations can add between 10-15 per cent to the selling price, something
that is promoting a lot of owners to remodel and upgrade their older
properties.
Ahid Shaikh, founder of BnB, who is also the chairman of Déjà vu Real
Estate, said there are two clear segments where "we see a need gap".
"One is homeowners, who are seeking a classy and cosmopolitan look for
their new homes, or looking to upgrade existing properties to increase
valuation and ensure a steady return on investment. And the other is
Dubai's growing residential & commercial projects market."
Recently, Bianca & Bianco, a new concept of affordable luxury porcelain
slabs, tiles, and exclusive bath & kitchens solutions, launched its first
showroom in Dubai on Sheikh Zayed Road catering to the needs of large
commercial and residential real estate projects looking for competitively
priced international quality fittings.
"Real estate is one of the biggest investments in your life. Property needs
look beautiful and should be upgraded regularly for it to retain and enhance
its value. But while you want luxurious finishes and high quality, you also
don't want to break the bank! Today everyone, whether a project manager
or an individual, wants opulence that is cost-effective and delivers great
ROI," he adds.
Abeesh Koshy, operations director, Dubai creative group, said the UAE's
fit-out industry today demands a constant innovation both in residential and
commercial sector compelling each player to bring in a business strategy
which is competitive and disruptive due to higher consumer demand. "The
designs are no more contemporary but futuristic as consumers are largely
influenced by Generation Z," he said.
This is the very good step for the customers said Shaikhani group, This
step will leads the customers to take a quick decision where they are in
need to view the apartment or villa, customers are always looking
something to save their time, because travelling is not easy in today’s
world. People do avoid travelling unnecessary, travelling will cost a lot plus
it will be headache.
This new step will help real estate sector to flourish in the market very
easily, because you have a trust on something you don’t bother that much
what is going on. Customers open the app and go for the checkout or take
their decision on the product shown in the app. Buying online is a normal
routine for nearly 90% customers they prefer to order online, where they
don’t have to hassle their life.
https://www.khaleejtimes.com/business/real-estate/fit-out-industry-expectsbooming-
business-in-2020

#Shaikhani #Shaikhanigroup #Realestate #Gardenia #gardeniaresidency #dubai #Dubaiestate #Memongroup #Investment #apartment #expo2020 #Goodreturns #Rental #Secure #ROI  #Realtor #Homeforsale #Househunting #Broker #Newhouse #Forsale #Property #Listing