A general view of a villa community in Dubai.
Inayat-ur-Rahman, Business Editor
The UAE’s policies in dealing with the pandemic including the allocations of $32 billion to overcome the repercussions, had a great impact on the strong growth of the real estate sector.
This was revealed by Walid Al Zarooni, Chairman, W Capital Real Estate Brokerage, during a media briefing in Dubai, adding that the brokerage sector had a prominent role in leading the recovery of sales in Dubai real estate sector in the meantime of recovery from the repercussions of the COVID-19 pandemic. He stressed that real estate sales in Dubai are heading for the best annual performance ever during 2021, which reflects the efforts made by all parties to the sector, i.e. regulatory bodies represented in the Dubai Land and Property Authority, as well as real estate developers and brokers.
Al Zarooni believes that the real estate brokerage sector is in the golden times amid the recovery in demand , and the market shows indications of a long-term rise in the price index, which exceeded 12% on an annual basis in November 2021, while villa prices increased by more than 30%. The improvement of all market factors, and the unprecedented government support, both from the legislation governing the ownership and sale of real estate in Dubai, as well as decisions to grant citizenship and long- and medium-term residency, all contributed to robust demand for the purchase of real estate units and investments in Dubai real estate projects.
Al Zarooni stressed that the investment momentum in the real estate sector tempts many UAE nationals to enter the real estate brokerage sector, or to learn the basics of the market in order to be able to buy and sell and take advantage of investment opportunities offered by the sector. That was created by what is known as the “National Broker.”
On the other hand, Al Zarooni said that the Dubai Expo 2020 helped in promoting Dubai as the best city globally for financial, commercial, and real estate investments in the post COVID-19 era, while the governmental, financial and legislative stimulus packages played vital roles in boosting that image.
“The impact of the Expo 2020 on the economy as a whole goes beyond the 6-month period of its activities,” Al Zarooni confirmed.” Since the announcement of winning the chance in 2013, the government spent billions to develop infrastructure, and put in place equipment and preparations to organize that global event, which was reflected in increasing the attractiveness of Dubai real estate, making the emirate among the best places to work and a dream for many people around the world to live,” he said.
Asked about market trends, and odds for prices to continue to rise, Al Zarouni said: “The market conditions show that continual growth during the next five years is sure. The supply depletion, the approaching market balance and the growth of demand, help prices remain high, so whoever is interested in investing in real estate must invest now, and a delay will be a loss of gains because profits that could have been reaped as the value of the assets will increase.”
Walid Al Zarooni.
“My role model and first inspiration in work and life is His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai,” Al Zarooni said. “I realise with His Highness every day a new thing that motivates me to exert more effort towards daily giving, great ambitions and achieving the impossible,” He added. “I think that I am trying to derive my work experience from the experience of Dubai, which succeeded in becoming a leader in the field of business, and the focus of the world’s attention with its experience in attracting global investments,” he concluded.
The chairman of W capital believes that one of the reasons for the success story is credited to the boom in the real estate sector in Dubai in particular and the UAE in general. There have been important leaps in the sector, the most important of which are the legislative structure and the laws and regulations that lead the work of developers and brokers.
“I do not forget when I decided to start my own project in 2007, I received all the support from the Mohammed Bin Rashid Fund for SME, which provided the support that ensured success,” Al Zarooni said. “The membership of the Fund helped me in dealing with government and private institutions, and I got aid and support from financial institutions and the government alike,” he added.
Al Zarouni worked in a number of institutions and banks before establishing his “W Capital” real estate brokerage, which obtained the membership of the Mohammed Bin Rashid Fund for SME.
“W Capital” real estate brokerage, started about 15 years ago and benefited from the construction boom in Dubai. Their growth was linked to the expansion of the real estate sector in the emirate.
Al Zarooni pointed out that the significant growth of Dubai’s economy affected the recovery of the construction sector, whether contractors or real estate developers, as well as brokers and supporting services.
The Chairman of the “W Capital” revealed that the total real estate marketed by the company to major developers since its establishment exceeded Dhs1.2bn. He stressed that despite the growth achieved by the company, it still has great opportunities for expansion in the coming years thanks to The Dubai 2040 Urban Master Plan and the incentives provided by the Dubai government to support all economic sectors, including real estate.
He stated that 80% of W Capital’s clients are UAE nationals, 15% are Gulf clients, and 5% are of other nationalities. The good relationship with real estate developers that exceed 50 companies , has had a role in obtaining exceptional prices for clients, including the developers portfolios. The list of developers that deal with W capital include «Emaar Properties», «Binghatti Developers», «MAG», and «Diyar», to mention the few.
Al Zarooni indicated that W Capital’s believe in national brokers and their role. Therefore, the company launched the “Real Estate Broker” program, which provided training opportunities for Emirati citizens in the real estate brokerage sector, in cooperation with the Administrative and Real Estate Academy in Dubai. This partnership is the first of its kind in the UAE and the Middle East. He noted that the program provided more than 140 training opportunities for UAE nationals in the real estate brokerage sector through the Administrative and Real Estate Academy, and it was stipulated that the trainee be a UAE national with a high school diploma.