Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years of experience in executive management, business expansion, performance improvement, sales and marketing.  

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Samir Salya discusses the London luxury flat market

Despite a flat market due to the uncertainty surrounding Brexit, it looks as though there is life in the luxury apartment sector in London.

Billionaire developers, the Reuben brothers, are demonstrating their faith in the luxury flats market in central London. They have sold 45 luxury flats based in Paddington in less than two months.

New development launched

Developer European Land, which is a joint venture between David and Simon Reuben and other property investors, also launched a development of 79 one to three-bedroom homes located at 3 Canalside Walk during eth summer.

They will cost buyers or investors between £650,000 and £1.6 million and construction is due to be completed in 2020.

According to the agent selling (JLL) these properties, more than half have already been sold to investors from the Far East, Middle East and from the UK.

London still attractive to investors

This appears to demonstrate that investor confidence in central London luxury property is still high. London is retaining its position as an attractive property investment market, particularly in well-connected areas.

As long as superior quality developments are planned, then it look as though London’s luxury property market has no reason to slow down.

Developments such as Canalside Walk are careful to position themselves to transport links. For example, Canalside Walk is easily connected with Heathrow Airport via the Heathrow Express. The planned arrival of Crossrail helps to make sure Paddington remains a strong and secure medium to long term investment area.

Weak sterling

The weakened sterling has meant an increase in foreign buyers. London estate agency Glentree International has reported sales work £150 million in just ten weeks. They remain confident that the top of the luxury market will continue to attract foreign investment.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing

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Samir Salya on the Middle East’s overseas buying

In 2015, the wealthy investors of the Middle East spent a record $30 billion. This year, it’s dipped to $16 billion, and looks likely to stay at this level.

Investors have cut their overseas spend nearly in half since 2015. This is down to the unpredictability of oil prices and the slowdown in economic growth.

Compares well to previous years

Despite the figure lowering to $16 billion, it’s an amount that compares well to the spend in 2013 and 2014 ($14 billion and $15 billion respectively). Oil prices were high in those years, before they started to drop in Q3 2014.

The increasing investment during the last couple of years has meant much larger individual investment transactions. Countries including the UK, the US and Germany have been at the top of the list for most Middle Eastern investors and buyers.

Top global cities

According to figures from leading real estate consultancy Knight Frank, the top cities in the world for Middle Eastern investment in 2016 were Central London, Paris, Berlin and New York.

During this period, 24% of global high net worth investors bought up real estate. Around 27% of all property transactions in the commercial sector involved a private buyer. The UK was the top country for commercial individual investments. This shows that the uncertainties surrounding Brexit and what the market will look like in 2019 hasn’t dented enthusiasm for luxury property investment in Central London.

Private wealth in property

Around 25% of all private wealth is tied up in real estate investments of some description. These figures exclude primary homes and secondary residences. According to the report from Knight Frank, this is “the highest allocation since records began.”

Ultra-high net worth individuals (UHNWI) are defined as those who have more than $30 million in net assets. Anthony Duggan, Head of Capital Market Research for Knight Frank, says: “We predict that private investors will continue to take global market share as both the number of wealthy individuals and their assets grow. The number of these super-wealthy rose by “6,340 in 2016 alone, taking the total to 193,490”.

The report goes on to show that 32% of UNHWIs will invest in real estate overseas over the next two years.

Asia challenging the US

In a significant change to the number and location of UHNWIs, Asia is starting to catch up with the US. Asia has around 27,020 fewer UHNWIs than the US, but this is predicted to change. By 2026, it’s expected that this difference will have come down to around 7,068. China will lead the way in terms of ultra-wealthy residents, and areas such as India, Sri Lanka and Vietnam will also have increasing numbers.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing

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Samir Salya looks at who is investing in Central London

The latest figures from London Central Portfolio show that homebuyers of luxury property represent 45% of all sales in prime central London. This is three time as many as the previous 12 months, due to the increasing discounts available.

This has resulted in an increase of transaction numbers in luxury sales. There was a 23% increase in activity during Q2 2017 in the £5m to £10m category. On the other hand, there has been a significant fall in the numbers of buy-to-let (BTL) investors in central London. Their number has fallen by 33%.

Buy-to-let decreases

The average price of a BTL property in central London has dropped by 27% to £816,428 over the last year. This has led to houses in the prime areas becoming much more popular, with an increase in sales of 4.1% and an increase in average prices of 4.9% in Q2.

The number of flat sales have dropped 11% and the prices have gone up by only 2.6%. There has also been a huge 55% decrease in sales during Q2 for new-builds in Prime Central London (PCL). The market overall has seen a decline of 9%, so this is significant.

Where are biggest buyers from?

The biggest purchasers are from Far East Asia – they represent 36% of purchases over the last year. They’re followed by buyers from India (22%) and the Middle East (21%).

There has been a prolonged period of low price growth in PCL due to buyers constantly needing to adjust their strategy, thanks to changes in taxes and the political and economic uncertainty caused by Brexit and a snap General Election.

Despite this, PCL showed a growth in Q2. According to data from the Land Registry, average prices got up to £1.9m following a quarterly increase of 5.8%. This was boosted by a small number of high value sales. Transactions have stayed at extremely low levels, with just 3,750 during the last 12 months.

Slower activity in certain categories

Activity has been much slower in the category of £1m and under price ranges. This is because it’s generally largely dominated by BTL investors. This sector saw a 9.4% fall in sales in Q2 2017.

Buyers are increasingly seeing the attractions of unique older properties, rather than new builds. This has led to speculators hanging back in the face of uncertain returns.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing

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Samir Salya discusses rental values in Dubai

Depending on the specific area, it’s clear that many rents in Dubai have seen some kind of correction during the last year. This is linked with locations that have seen new properties and developments coming onto the market, and therefore putting pressure on landlords to lower their rents.

Over the first nine months of 2017, approximately 11,800 homes were handed over. Areas such as Dubai Sports City and Jumeirah Village Circle have seen significant numbers of new supply of properties.

Rents declining

The consultancy Cavendish Maxwell have shown that rents have declined by an average amount of 2.8% for apartments and 3.5% for townhouses and villas during the past 12 months.

The reasons for these declines, according to the consultancy, include new project handovers, particularly of lower priced stock. They also point towards job losses and salary adjustments in some sectors in Dubai.

To sweeten the deal, landlords are cutting rents, and in some cases throwing in a rent-free period of a few weeks.

Sales figures

For sales of property in Dubai in Q3, there were 8,900 transactions. July 2017 was the busiest month of this quarter, which could be due to the renewed activity post-Ramadan, which had seen subdued business.

Off-plan sales covered 77% of the transactions during this period, with top investor locations of Business Bay, Town Square, MBR City and Dubai South.

This momentum in sales of Dubai property is driven mostly by a higher number of end-users than previously. In particular that has been a surge of first time buyers looking to enter a market that is offering lower prices and attractive payment plans.

Some local banks have also introduced new mortgage products, which have also

“The introduction of new mortgage products by some local banks has also encouraged more activity.

More pressure on rents

A survey of brokers shows that townhouse and villa rents will continue to feel more pressure in the future. It looks possible that new buyer enquiries could increase in the final quarter of 2017, with a spike expected in the number of agreed sales.

This will mean landlords will be forced to remain as competitive as possible with rent prices, in order to attract tenants.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing

[samirsalya-blog]

Tech helping super rich rent London homes

In today’s technologically advanced world, the super-rich wanting to rent a place in London don’t even have to visit in person before agreeing on a property. The rise in the use of smartphone technology has meant that the wealthy are able to make decisions based on video tours alone.

High rent in central London

Rich people from overseas are ready and willing to pay as much as £25,000 per week to rent a luxury London home. And they don’t need to see it in person before they open their purse.

Demand for super-prime homes in London is so high that all they need is a tour via WhatsApp or FaceTime to make their decision. For example, a high-end agency says that an unnamed ‘global superstar’ has agreed to rent a seven bedroom, terraced, Grade II listed house with views of Regent’s Park just by watching a video tour on their iPhone.

Video tours popular

The technological advancements made available by smartphones have transformed estate agents’ approaches to lettings and sales of property. As the very rich tend to have tonnes of money but not much time, video tours make a lot of sense.

Using FaceTime or WhatsApp, agents can offer live tours or recorded tours. Allowing a direct link to the client during the tour means that they can ask questions and have enough information to snap up the property before they potentially lose it to other eager renters.

Choosing to rent

Often these clients aren’t available to come in person, or would distract from the deal being made. For example, the client who took up the Regent’s Park pad didn’t want their identity known by the agent. If they were there in person it could distract from the deal.

Even though the rental amounts are extraordinarily high, many super-rich clients are increasingly choosing this option in order to avoid the increased stamp duty on homes owned by offshore companies.

Renting homes rather than buying property can also help wealthy people keep their lives private. The government is currently preparing to force the declaration of the true identity of the owner of all property, something that many wealthy celebrities would be happy to avoid.

Property data research company LonRes released figures that show the number of homes let for more than £5,000 per week in the capital in the first half of 2017 increased 21% compared with the same time period in 2016.

This sharp increase in expensive rental homes comes in the middle of a true slump in sale prices for prime London properties. Renting instead of buying allows the wealthy to bide their time until the market is clearer and costs are lower.

Trend for tours via WhatsApp

WhatsApp is fast becoming one of the most popular ways for clients to see tours of property in real time without being there in person. While it’s not always super prime properties being viewed in this way, it’s often rich people demanding video tours.

Their time is more valuable to them than the need to see the house personally, so video tours gives them the best of both worlds. While in the past they would have sent assistants or hired experts to view properties, technology allows them to see what they need to see without wasting unnecessary time.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing

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Samir Salya discusses whether it’s best to rent or buy in the UAE

Many expatriates arrive in the UAE assuming they will stay a year or two, and then decide that it’s become home. So, should they rent or buy property? What’s the best option?

While it’s always a personal decision based heavily on personal circumstance, if you are planning to stay a relatively short time renting is best. However, if you have lived here for more than five years it’s probably time to buy.

It’s a buyer’s market

Since the crash in 2008, the Middle East property market has matured. Rohit Garg, Head of Business Banking at Mashreq Bank says: “Both the increases and the decreases in prices are a lot more measured and tempered. There has been a rise in the [number] of transactions.”

Property experts have also pointed out that after stalling following 2014’s oil shocker, the sales market in Dubai is showing signs of recovery. Information released by the Dubai Land Department (DLD) shows that during Q1 and Q2 of 2017, the value of property transactions was Dh132 billion – 16.8% higher than the amount recorded for the same time period in 2016 (this was Dh113 billion).

Value of new mortgages increased

The DLD figures also showed that the total value of new mortgages has increased. This has risen from Dh48.3 billion in 2016 to Dh 60 billion in 2017. The market is increasingly moving towards buying property to live in rather than for investment only.

Attractive market for investment

While the move is more towards buying to live, Dubai remains an attractive investment proposition. The city has a yield of around 7%, which is a higher return than many other major cities around the world.

Comparing prices to places like Hong Kong, London and Singapore, Dubai does well. Not only is the tax rate lower, the rental yield is higher.

Interest rates won’t rise dramatically

Unless interest rates rise dramatically, they don’t pose much of an impact on whether it’s a good investment to buy in Dubai. Experts are ruling out such a sharp rise, making it a good bet.

Mortgages are available for up to 25 years in Dubai, although most are paid off by expats in under ten years. Mortgages are cheaper than renting in many cases, particularly in the short term as they have lower monthly costs.

All of this suggests that, for those planning to stay in the UAE longer than five years, buying can be the better option.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing

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Samir Salya looks at one Dubai developer with designs on London

Dubai-based Sobha Group is planning to diversify its portfolio and take on developments in London and the Philippines. This will be in addition to its large-scale plans in Saudi Arabia through a partnership with a US based firm.

Drive for overseas developments

The Sobha Group is known for its premium projects in Dubai, along with a decently sized portfolio in southern India. Chairman of the group, PNC Menon, says: “In our calculations we have set internal targets of how much further we can grow in Dubai/UAE and India.

“For the higher growth in future, we need more markets to be in. It’s only new geography that can keep us maintaining the growth numbers on the financials. And make us better prepared to go through the ups and downs of a market cycle.”

London the obvious choice

This move to overseas will be happening over the next two years and London is an obvious market for the group to target. While at first glance the Philippines doesn’t seem as obvious, the group believes it’s also an area rip for development.

The chairman says: “If you see the scale of remittances coming out of the Gulf back to the Philippines and the kind of growth that economy has been having, it will seem an obvious choice for a developer to be. There is significant cash flowing through the system.”

If the Sobha Group does break into the Philippines then they could be setting a trend for others to get involved as well. Historically, UAE developers tend to go towards Malaysia or Indonesia in the Far East.

London represents opportunity

The group sees London as a natural extension for its portfolio. The chairman says: “There are always opportunities be had in that city with property… and I’m saying this only about London and not the whole of the UK.”

UAE retail and institutional investors have always been interested in London, particularly when it comes to the central addresses. It’s only been in recent years that developers have been taking a more active role in this area as well.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing.

[samirsalya-blog]

Samir Salya on a new floating development in Dubai

An ambitious developer is planning to recreate Venice just off the coast of Dubai, with plans for a floating hotel. The Dh2.5 billion development will have an underwater floor and is the brainchild of the Kleindienst Group.

Plans unveiled

The company announced its plans on the first day of Cityscape Global 2017. The project is called “The Floating Venice” and centres on super-premium hotel rooms built on top of the floating base.

One entire floor of premium rooms will be completely underwater, and it’s planned that the project will be moored as part of The World cluster of islands just off Dubai’s coast.

Company using boat builders

The hotel itself will stretch over a site that is 37,000 square metres in size. The stretch of water is 4km from Dunai’s shore, and its building rights were secured recently.

As it’s not a typical building, the company has pointed out that they won’t be using typical builders. Instead they’ll be using expert boat builders to help them complete their ambitious project.

Will it be movable?

Although technically the hotel would be able to be shipped to different locations, the intention is to have it stay in Dubai. The development should be delivered in Q4 2020, during the Expo 2020.

Josef Kleindienst is well known for taking on unconventional development projects. It’s currently building six islands called “Heart of Europe” on The World. Three of those islands will be delivered in 2018 and the rest by early 2019. Called “Floating Seahorses”, they’re basically yachts with living rooms underwater.

The Chairman of Josef Kleindienst said: “You would be surprised how many people want to live inside the ocean. We received feedback from 21,600 people and that was the reason why we decided to go in for an underwater luxury hotel.”

Amazing facilities

There will be 414 rooms on the floating Venice development, and the resort will be able to welcome 3,000 guests. The accommodation, recreation areas and restaurants will be situated over four decks, including the one that will be underwater.

Guests will access the floating hotel by seaplane, helicopter or boat. Helicopters will land in the main Piazza San Marco and visitors will then check in at the underwater reception area.

Gondolas from Venice

To add extra Italian authenticity, real gondolas will be brought over from Venice to take guests to their rooms through canals. If they prefer they can walk alongside the canals and bridges to find their cabins.

The development is designed to last at least 100 years when completed and construction will begin early in 2018.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing

[samirsalya-blog]

Samir Salya on the latest price drop for London’s luxury real estate

There has been a 7% slump in the luxury housing market for the UK’s capital, thanks to high stamp duty and the uncertainty cast by Brexit. However, there are signs that the market is bottoming out and better times could like ahead.

Average cost down

According to real estate experts Knight Frank, the average cost of a luxury home in the prime area of London fell by 6.4% in figures leading up to March 2017.

The bad news has been contrasted with the fact that quarterly growth climbed to 0.1% in the first quarter of 2017, when compared with the three months prior. This is the highest level of growth since May 2016, and could be a sign that the slump is over.

Optimistic trends

Head of London residential research at Knight Frank, Tom Bill, said: “Trends in price growth in central London are pointing towards an end to the falls we saw in 2016.”

The stablisation began in Q4 2016, and was driven by sellers absorbing stamp duty costs into their asking prices. Foreign buyers and investors have also continued to benefit from the weak pound caused by the Brexit vote in June 2016.

Sterling is currently at an almost all-time low, meaning foreign investors will still be able to benefit while the UK’s economy struggles.

Luxury deals up

The total number of high end real estate deals (more than £20 million/US$24.95 million was last beaten in Q4 2014. Knight Frank predicts that house prices will stay flat in 2017, although it also took into account the uncertainty of the wider political background.

Formal Brexit negotiations are currently underway and the results of these are unknown to just about everyone for now.

Demand for super-prime robust

Knight Frank also analysed the rental market in London. Results show that the demand for super-prime lettings (this refers to properties costing more than £5,000 per week) is still high. Twice as many deals above this threshold were completed in Q1 2017, when compared with the same period in 2016.

This could be, at least in part, down to people choosing to rent instead of buying as they wait to see whether prices will fall further in the neighbourhoods of their choice.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing

[samirsalya-blog]

Samir Salya discusses the rise in new home handovers in Dubai

Figures show that Dubai’s developers have become more committed to faster handover schedules in 2017.

The first half of this year shows that 13,315 homes were delivered, against just 5,039 in the corresponding time period in 2016. Data from Reidin-GCP shows that the first half of 2015 was slightly more than 2016 at 8,714 units.

Can developers hit targets?

Even if they continue at the same pace for the rest of the year, it looks unlikely that developers will be able to meet their 12-month expectations of 34,172 units delivered.

Full year totals for 2015 came in at 11,879 and 2016 at 14,892 units. This gap between realty and forecasts is likely to become even more stark in 2018. There is an expectation of 70,785 units to be handed over next year, which is extremely unlikely judging by current performance.

It’s likely that instead the realisation rate next year will be at 44%, which means 31,266 units being delivered.

Increase in population

The population has increased by around 5%, which actually matches with an annual increase of 30,000 units per year. If the population grows by 7%, this would jump to 35,000 units.

Developers have become better at adjusting the realisation rates of units on a year-on-year basis. This allows them to better manage expectations of supply. This makes a lot of sense from a developer’s point of view, as they are obviously trying to minimise any unsold stock. If there was a spike in unsold units, then this could negatively affect property values.

Handovers by community

Among the free hold communities in Dubai, the highest number of units successfully handed over goes to Dubai Silicon Oasis with 2763 handed over in the first six months of 2017. Coming up just behind with 2,520 units delivered is Dubailand and International City saw completions at 1,543 units.

In premium property areas, Downtown had 1,411 handovers and Business Bay had 869. Coming up as part of the fast-emerging newer communities, Jumeirah Village Circle had 694 homes delivered.

The rapid rate of change in suburban, more affordable areas shows that there is a real need for balanced housing at achievable prices.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing

[samirsalya-blog]

Samir Salya on London’s build-to-rent boom

A new breed of hotel-style homes for renters in London are springing up due to the affordability crisis surrounding getting on the housing ladder.

Property prices are fast outstripping wage increases in London, which has led to many people simply not being able to afford to rent. Developers have come up with a way to provide hotel-style homes in the burgeoning build-to-rent sector.

New homes for renters

Reports say that around a quarter of households in the capital will be renting by 2021. This has led to the boom in the build-to-rent sector, which is now worth around £25 billion according to Knight Frank. Over the next five years, the sector is expected to be worth £70 billion as renters increase in numbers.

London is home to half of the 60,000 build-to-rent properties that are currently either under construction or planned in the UK. However, this only serves a tiny segment of the expected demand from the 2 million plus renters expected.

The rise of build-to-rent

Historically, the letting market has been led by buy-to-let investors. Around 75% of renters are living in homes managed and owned by private landlords. Build-to-rent developments owned by large-scale corporate landlords will change the face of renting in London.

The sector offers more variety in types of homes that renters can choose. It’s also likely to make tenants feel more secure due to tenancy contracts of up to three years.

Vantage Point

Vantage Point is Essential Living’s first build-to-rent development and opened in Islington last year. It’s located above Archway Tube station and offers the kind of benefits that are likely to be seen more frequently. These include fully furnished accommodation, access to a duplex lounge, communal living spaces, swimming pools, gyms and car sharing facilities.

Londoners looking for rental accommodation cite good transport links as the number one priority. In many cases this supersedes the need to stay under budget. This is likely to increase the popularity of build-to-rent hotel style developments even more.

Prices at some if these developments start at around £250 per week, but can easily increase far beyond this depending on the services that are included. The facilities that can bump up the price include fully furnished apartments with free Wi-Fi, a 24- hour concierge and hotel style reception.

Why there are more renters

The report from Knight Frank also shows that more than half of renters in London are routinely spending more than 40% of their income on rent. Separate research from Hamptons International suggests that there are clear reasons for the rising number of renters.

It would take a typical single Londoner more than 18 years to save a 15% deposit in order to buy a home. For a couple, it would still take 11 years. No wonder then that renting is more and more popular in the capital.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing.

[samirsalya-blog]

Samir Salya discusses UK Export Finance for UAE projects

International Trade Secretary to the UK, Liam Fox, announced that UK Export Finance (UKEF) will be supporting UK based construction companies with the projects they are undertaking in the UAE.

UKEF (the country’s export credit agency) will be providing more than $600 million to Carillion and Kerr, construction companies that will be delivering three major Dubai-based infrastructure projects.

High profile contracts

Kier and Carillion have won contracts in the UAE that are worth hundreds of millions of dollars. The announcement is part of the government’s new initiative to bring together leading infrastructure firms in the UK with the government in partnership to win major international contracts.

Projects in Dubai

Carillion and Kier are now contracted to deliver a new stadium complex, new housing and one of the biggest office developments in the UAE.

Kier will be constructing the Dubai Arena, which is an entertainment and sports complex that will seat 17,000 people. They are also constricting staff accommodation buildings on site. UKEF has guaranteed $455 million to Kier to complete the projects in Dubai.

Carillion has won the contract to design and build the newest phase of Once Central. This is the Dubai World Trade Centre’s new development within the central business district of the region.

Carillion has already delivered the first two phases of the massive development and this newest phase includes two new office towers. UKEF has guaranteed $180 million worth of support to this project.

Helping to shape Dubai’s economy

The UK government sees this as an example of the UK’s leadership within the global infrastructure sector. Kier and Carillion are part of the move to shape the economy of Dubai by constricting business infrastructure and boosting tourism.

Sean Fenner, MD of Kier International, said: “The Dubai Arena and Nshama residential developments are remarkable projects that will transform Dubai’s entertainment and accommodation sectors respectively.

“The support of UK Export Finance has been instrumental in helping us win this business as we look to build on the substantial growth we’ve seen in international demand.”

All three projects have been funded in partnership with HSBC’s Export and Specialised Finance team. A representative said: “The support required to deliver these major infrastructure contract wins reiterate the growing trend of developers in the UAE seeking export credit agency financing for complex projects. Each financing solution has a bespoke structure using innovative concepts that ensure it is aligned with the aspirations of all parties involved.”

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing.

[samirsalya-blog]

Samir Salya explains why UAE investors are turning to London

It seems that not all UAE based investors are concentrating on snapping up off-plan realty in Dubai. Quite a number are heading to London to look out for bargains in the UK.

According to research from Cluttons, since Eid there has been a surge of interest in London homes from investors based in Sharjah, Oman and Dubai. They are mostly interested in homes priced between £800,000 and £3 million (Dh3.7 million to Dh14.2 million).

Surge in second homes

The report shows that these buyers are mostly looking for second homes and clearly prefer brand new builds or those properties with completion dates of between six months to a year.

It’s assumed that London house prices will start rising again at some point, and Middle Eastern buyers are hoping to capitalise on this by snapping up property now.

While research from the Dubai Land Department shows that investors from the Emirates ploughed Dh15 billion into different kinds of property in Dubai in the first six months of 2017, they still have a preference for property in London.

This interest in London property could give them a great return if and when London prices start to leap again, but these investors aren’t benefiting from the same currency benefits that existed in the last six months of 2016.

Brexit benefits closing

The second half of 2016, following the vote to leave the EU in June, saw a 17% drop in the value of the pound, leading to unprecedented investment opportunity from overseas buyers. However, the gap has now closed to around 11%, meaning this post Brexit opportunity has begun to lessen. It’s likely that this closing gap is why many UAE investors have snapped up opportunities recently.

In another break from past form, investors aren’t just putting money in to key central London areas (such as Kensington, Chelsea and Westminster). It looks like the outer regions of London suit just as well, as long as they can get what they want.

This further explains the price range of £800,000 to £3 million on average, which is quite different to the £5 million + average of acquisitions made by Middle Eastern buyers in London properties between 2010 and 2014.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing.

[samirsalya-blog]

Samir Salya on the new permit strategy to boost Dubai realty sector

It looks like investors and developers alike will benefit from the new strategy in Dubai for allocating building permits. The plan is expected to speed up the general approval system needed for securing building permits and therefore boost the real estate sector.

Analysts report that they expect the new strategy to simplify the process of obtaining government approvals to launch new build projects. Not only will investors and developers benefit, but it should increase overall confidence in the property sector in Dubai.

Efficiency and speed

Simpler and speedier processes will help to cement Dubai’s strong position of one of the best locations for property investment in the world.

The strategy was approved recently by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, as part of the plan to improve and enhance the position of Dubai as a central hub for construction and real estate.

Developers like Niall McLoughlin, senior VP at Damac Propeties, have welcomed the strategy. He says that it will: “streamline the real estate industry’s ability to acquire the documentation it needs to build faster, and will have a direct, positive impact on the sector’s growth”.

Developers welcome strategy

It seems that other developers agree. The VP of marketing at Deyaar Development, Mona Al Tamimi adds: The new standardised process will enable the real estate sector to optimise government procedures throughout the different phases of construction. Given the tremendous number of projects currently in the pipeline leading up to 2020, time is of the essence.”

Simplifying processes like this will allow developers to concentrate on other aspects of their projects. It will also increase interest in Dubai development for investors. As well as saving time, the strategy should reduce delays and costs for developers, which will improve the ROI of individual projects. However, there could be a negative effect as well, as there are signs of over supply in some areas as it is, so more efficient processes could add to this.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing

[samirsalya-blog]

Samir Salya discusses the rise of micro-apartments in London

Proving that the old adage ‘location, location, location’ is still the over riding factor for property buyers, tenants in London are turning more to micro-apartments. Research shows that the market in prime central London is experiencing an increased demand for tiny apartments as long as they are in the correct location. The research was analysed by London Central Portfolio (LCP) and found that smaller is fine with tenants who want to be central and near their job or university.

Rental market fragmenting

The real estate sales market is increasingly fragmenting and luxury properties are suffering. This is a clear reaction to the instability brought on by changes in tax and the ongoing uncertainty surrounding Brexit. In a similar way, the rental market is fragmenting by size and price.

During the last year, around 42% of the properties let in central London have been either one-bedroom apartments or studios. These stats show that tenants are prioritising transport links and lifestyle over size of property units.

Families moving out of the centre

Demand is slower in central London for large rental properties. This suggests that families are increasingly considering options that aren’t central, and therefore offer better value and more space.

The Chief Executive Officer at LCP says: “From a rental market perspective, a dynamic which was notable during the credit crunch is again apparent as corporates cut their housing budgets. Tenants are now looking for more affordable options, choosing central locations and an easy commute.”

Global trend

This shift is a reinforcement of the burgeoning trend for a certain type of buyer to look out for high spec micro-apartments. They are particularly concerned with intelligently optimised space. Families are tending to move out more to the suburbs, as they can expect to find larger homes and possibly outside space.

All of the rental sectors in the central London have seen an increase in rent discounts due to landlord uncertainty and too much stock, this is notably lower when it comes to smaller units. While studio and one-bedroom units have rental discounts between 5.2 and 6.2%, larger properties have discounts of up to 11.2%.

Easier to find

Micro-apartments are also easier to find for tenants. It takes around 42% longer on average to market a three-bed house than a studio unit. Newly refurbished one bed units are showing the strongest rental increases, and are now posting rents that go above the five-yearly projection. The average rent increase for high end, newly refurbed, small units has increased by 6.9% when compared with a 1.9% for old stock.

So, while tenants are clearly looking for smaller units, they also want affordable prices and high-quality properties. Amenities and transport links need to be on their doorstep and matter much more than square footage.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing

[samirsalya-blog]

Samir Salya on the PropTech revolution in UAE

According to a report from HSBC, more than two thirds of home buyers in the UAE are using technology to track down their perfect property.

The use of property technology (PropTech) in the form of online platforms and apps has taken the world by storm over the last few years, so it’s no surprise that it is just as active in UAE.

Study of buyer behaviour

The research, called Beyond the Bricks, The Future of Home Buying, shows that 72% of property buyers in the UAE use an online platform to search for properties. More than 65% use it to check the value of their own home, around 65% search out information on regulations and tax, about 65% hop online to do some research on potential areas and 64% use the tech to look for prices on possible new homes.

HSBC’s report took in global figures as well, by analysing the opinions of 9,000 buyers across nine countries. This total figure includes more than 1,000 house buyers in the UAE. The study aims to give a broader insight into how property buyers are really feeling, and crucially, how they behave when renting, owning and buying homes.

From FinTech to PropTech

Findings from the report concerning the UAE reinforce the expectation that the revolutionary disruption of the financial sector by FinTech (financial technology) has now spread to property with PropTech.

Although online agents have been active for many years, it’s only recently that they have started integrating the use of apps, as well as tech such as virtual reality (VR) and artificial intelligence (AI). These additions aim to transform all of the stages of the process of buying houses.

The global disruption can be seen in the phenomenal rise in funding for PropTech firms over the last four years. Between 2012 and 2016, global investment has gone from about $221 million (Dh811.73 million) to more than $2 billion.

More changes coming

A representative from HSBC says: “The process of buying a home in the UAE will change substantially in coming years. It will be a more streamlined transaction, with buyers and sellers having greater control and relying much more on technology.”

Forward looking governmental efforts to back this include the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA). A number of services and databases are already online, and many more will follow. This clearly demonstrates the power PropTech has to simplify the process and speed up transactions.

Examples of PropTech

Examples of the work DLD have already put in place include the Investment Map portal. This allows investors and businesses to access practical information immediately, particularly information that concerns ongoing real estate investment projects. The Trust Account System app is another example. This manages the registration process of development projects.

Private companies are also driving PropTech, including a sharp increase in property listing websites. There are also more mortgage comparison sites to give buyers an idea of the competition available.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing

[samirsalya-blog]

Samir Salya discusses Middle Eastern investment in London

It looks as if investors from the Middle East are ready to jump in and snap up some bargains in central London. The city’s failing property market is proving a big draw for foreign investment looking to take advantage of distressed sales.

Industry experts are pointing towards areas like Nine Elms and Vauxhall as prime investment areas for investors from overseas.

Excess of luxury units

In south London, there is still a plethora of new build luxury units flooding the market. Figures show that there are around 10,937 luxury homes currently under construction, or with planning permission in this area. May of these are the sorts of luxury apartments that are out of the price range of the ordinary Londoner.

Low transaction levels and very high prices mean that people simply can’t afford it and there is a lack of buyers. This has led to a drop in prices, with the average price of homes for sale in south London at 6.2% lower in Q2 2017 than the corresponding time period in 2016.

Buying off plan

Many wealthy foreign investors want to buy apartments in bulk off plan straight from the developers. It’s likely that they are waiting for the market to weaken even further. When construction has completed, there will be too many rental properties in the area, meaning investors could fail to see the returns they want. This could also be leading to a cautious investment market.

Across the whole of London, there have been more new build homes that have been completed but are yet to be sold that at any other time in the last ten years.

Increasing number of Middle Eastern investors

Buying agents have said that there are an increasing number of Middle Eastern investors looking for London based bargains. Most of them are from the UAE, Saudi Arabia, Egypt and Jordan. There are, understandably, far fewer inquiries from Qatar due to the ongoing crisis in that area.

It seems that European buyers have been put off the market by Brexit and the current uncertainty of the consequences of leaving the EU.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings and is involved in real estate and construction within the UAE and UK. Samir holds over 20 years of experience in executive management, business expansion, performance improvement, sales and marketing.