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Relaunches are the name of the game at the 17th edition of Cityscape Global 2018, which opened its doors on Monday at the Dubai World Trade Cetre. The three-day exhibition, the largest real estate event for the Middle East, was inaugurated by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council.
The first day witnessed brisk activity with sales personnel from leading developers such as Dubai Holding, Nakheel, Damac Properties, Sobha Realty, Danube Properties, Azizi Properties and Union Properties out in full force to attract prospective buyers with unique payment plans and discounts exclusive to Cityscape.
Projects worth in excess of Dh20 billion were launched both on the first day and in the run-up to Cityscape, including Imkaan's Dh15 billion 'Sahel Al Emarat' project in Ghantoot and Union Properties' Dh2.5 billion Avenue District in Dubai Motor City.
The event features almost 300 exhibitors, covering the entire spectrum of real estate, and hopes to attract over 30,000+ visitors, according to the organisers.
Some of the other big launches at Cityscape include Marsa Meydan by the Meydan Group in Jebel Ali, D1 Residences at District One, Mohammed bin Rashid City, Mamsha AlSaadiyat by Aldar Properties, Eastern Residences by Falcon City of Wonders, Nakheel's Dragon Towers in International City, Fiora in Golf Verda by Damac Properties, and renovation of Khorfakkan beach by the Sharjah Investment and Development Authority (Shurooq).
Most developers are using the platform to showcase and sell existing inventory with unique marketing efforts, extended post-completion payment plans and other fee waivers. Some of these include service charge waiver, Dubai Land Department fee waiver, guaranteed net rentals, Oqood fee waiver and sales price discounts exclusive to Cityscape. This is a far cry from earlier years when developers focused on giving freebies (such as cars and yachts) to lure buyers.
Asteco estimates that 3,850 apartments and 700 villas have been handed over in Dubai at the end of H1 2018. The consultancy has forecast 12,000 homes to be delivered in Dubai by the end of 2018.
"There are quite a lot of relaunches. Developers are changing the marketing focus and incentives being offered. They are incentivising brokers with higher commissions, up to 10 per cent in some cases while the market norm is only two per cent for sales. Developers are now using social media and property portals for real estate marketing. They are also introducing new technologies such as geo-located tags targeting areas with high footfall," said John Stevens, managing director of Asteco.
What's different about Cityscape Global this year is that developers are placing equal emphasis on ready properties for sale. This is contrast to 2017, when off-plan had put up a stellar sales performance.
It was reported that over Dh870 million worth of on-site transactions were recorded during the three days of Cityscape Global in Dubai in September 2017. Analysts expect similar levels of interest this year.
"Cityscape Global 2018 will be more subdued than last year. We won't see as many new launches. There will be more re-launches of existing projects rather than new ones. A number of the bigger developers have cut down their presence at the event. It is a reflection of less new product being introduced into the market. There will be more focus on reselling unsold stock rather than launching new off-plan units," observed Craig Plumb, head of research, Mena at JLL.
Ian Albert, regional director and head of research and advisory, Mena at Colliers International, said: "Cityscape is about the exchange of views and ideas, where we are and where we are going, as an industry but also the marketplace. We still have some way to go before the market hits the absolute bottom. But the rate of decline in sales prices has definitely slowed."
- deepthi@khaleejtimes.com
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