Framework for Evaluating Sustainability Indicators - MyAssignmenthelp.

Question: Discuss about the Framework for Evaluating Sustainability Indicators. Answer: Introduction Property market analysis or real estate market analysis refers to the study of present market and the values of the property. Property market analysis focuses on the performance of the commercial property, retail industry and other industries (Dziauddin Idris, 2018). However, real estate economics include a technique that describes and explains supply, demand and the pattern of prices. Real estate is a durable property. The stock of a real estate supply can be measured based on the last year stock, existing stock, deterioration, and rate of renovation of current stocks. In 2018, the residential rental price of Dubai has dropped. As a result, property price has declined in the recent year in UAE market. This study deals with property market analysis in UAE and the current position of the real estate. The commercial real estate market in Dubai has a great contribution to UAE economy. This property market contains long-term health in comparison to other property markets. UAE government focuses on the development of real estate property as well as the housing property for families, hotels, hospitals, shopping mall and corporate sectors. The aim of developing housing apartments is to protect the households and demography of the citizen's residential areas. The main purpose of selling land or house is to buy another land or house. At present, the real estate property market has been proliferating in UAE, which highlights the economic growth of this country (Abouraia, 2016). According to the property law of UAE, the buyer of land or house should be a UAE national. Therefore selling and buying of property should not have any connection with the financial and legal liabilities. On the other hand, the sales price of the property should not be less than the current market value. The depart ment of the land and property in the Dubai only allows the buyer to buy the property if all these above criteria are fulfilled. The main target audience of the UAE, real estate market, is the 35 to 55 years age group of people as this age group is mostly involved in purchasing and selling the property. The commercial real estate in Dubai includes housing apartments, office, educational sectors, and shopping mall and so on (Eid Mohamed, Elkaftangui Farouk, 2017). Middle age group people are associated with the selling and purchasing of this property. At present Dubai, real estate market has been facing an infrastructure issue. However, according to the property builder of Dubai, commercial property market leads Dubai to get a good position in the international market. Hence, property builders of Dubai have been building many properties, which are not less than other developed countries such as US, Australia and Japan (Rogmans Ghunaim, 2016). However, property price in Dubai is at an unprecedented level, and this is notwithstanding the trend of the global recession. The investors, as well as the companies those are operating in Dubai, have reported that infrastructure of the real estate is not in good condition, which is a major barrier to this target property market. One of the major drawbacks of the infrastructure of the real estate property in Dubai is the shortage of water and electricity. Based on this current issue real estate builders in this country have decided to install their power generation. There is a need for compr ehensive policy to improve the infrastructure of the real estate in Dubai. Aims and Objectives This study aims to analyze the situation of the current property market in UAE. The objectives are as follow: To understand the current situation of UAE property market To analyze the current growth of Dubai real estate To identify the major issue of Dubai real estate market Research methodology Research methodology is a crucial part of every research study as the success of a research study is based on its methodology. In this current study, secondary research methodology will be taken to collect the data. Positivism research philosophy will be selected in this study. Positivism philosophy is associated with the sensory and natural information. This philosophy relies on the logical and scientific information (Abouraia, 2016). Data are collected from the exclusive sources based on this philosophy. Therefore, the deductive approach will be taken in this study. Deductive approach is based on the existing theory and models. In this research study, the descriptive design will be selected as the research design. The descriptive research design is based on the viewpoints of the individuals, case study, and perspectives of the participants. However, information will be collected from an authentic journal, and the journals are searched from the databases. Inclusion and exclusion cri teria will be used to select the journals in this secondary research methodology. Valid and reliable journals will be selected to find an authentic data based on UAE property market. Current information will be taken to complete this study. Property market refers to the land, building, retail industry and other business industries of a country. Real estate is one type of property market that contributes a good proportion to the economy of the country. Real estate is of two types that are the residential real estate and commercial real estate. The residential real estate includes housing property, and the commercial real estate includes hotels, shopping malls, educational sectors and office. However, apartment's buildings are also categorized under the commercial real estate though it is a residential property. Commercial real estate property enhances the economic growth in UAE. The property price is high as there is a high demand for the land and buildings in Dubai. Price of the vacant land is high in UAE market, and the seller becomes successful in this section. However, vacant land includes higher commission percentage (Hussain, Shahmoradi Turk, 2015). This is a major aspect of real estate business. In commercial pro perty business, the level of income is better if people show better in this section. Overview of the Dubai economy and real estate finance Economic growth of Dubai is good as it has high GDP; however, due to the economic recession in the year 2008, the property market of Dubai was affected. As per the Economic Intelligence Unit Forecast, it has been predicted that the GDP growth in UAE will rebind by 2.9% in between the year 2018 to 2021. Despite this, there are some economic headwinds in the UAE economic market that will bring a great threat to real estate market (Gulfnews.com, 2018). It has been observed that real estate market contributes 1/3 of the total GDP of UAE. However, the price of commercial property has fallen due to the economic recession, which created a big barrier for the property owner to enhance their profit margin. In this present years, the owner of the real estate in Dubai focuses on the low rent of the commercial property, which decreases the sales. However, though sale decreases but the stability has taken place in Dubai real estate market. Therefore, with the less price of the property real estate property owners have less risk in the business, which is a positive aspect of offering property at a low price. The property seekers and the agencies focus on the off-plan sales in UAE market, which leads them to gain more in the real estate market. In the year 2017, the price of the property has declined, which is predicted to recover in this current year by offering more products and new market segments in the real estate industry (Gulfnews.com, 2018). The current issue of Dubai real estate market Dubai real estate market is a growing industry of UAE. However, owners of this property market have been facing infrastructure issue regarding the residential and commercial property. Shortage of the electricity and the water is the major barrier to the corporate office and the residential property (Huston, Simon, Han, Hoon, 2014). Hence, it is difficult for the property builder to cope up with this issue and enhance their sales. Hence, Dubai real estate owners need to adopt a comprehensive policy to overcome such infrastructure issue in the real estate market. It is crucial for real estate builder to comply with the government rules to reduce the infrastructure issue and to give a better offer to the target market. Hospitality market is one of the major aspects of the commercial real estate property. However, Dubai invests more in the development of tourism infrastructure to attract the tourists (Abidoye Chan, 2017). Dubai parks and resorts, IMG world, Dubai Water Canal and Expo2020 are the major tourist attraction of Dubai. On the other hand, Dubai government and other real estate builders invest more in the mid-market hotel provision. It has been predicted that approx 23% of hotel rooms will be increased by the year 2020. Despite such growth, the hospitality sector of Dubai has faced challenges in the year 2017 due to the slow economic growth in this market. Therefore, the introduction of the local currency made Dubai an expensive destination for local as well foreign visitors. Despite these challenges, Dubai has maintained itself as one of the top tourism markets in the global tourism industry. The visitors number and the performance of hotels lead Dubai to get a good position in the worlds tourism industry. Occupancy of the hotel in Dubai was 75% in the year 2017 that is highest among the other hospitality sectors in the global market (Gulfnews.com, 2018). Overview of the office, residential and retail market in Dubai In 2017, the international grade A offices are performed well with the single ownership. The year 2017 was very challenging for the retail sectors in Dubai. Despite financial challenges, the Dubai Mall, Mall of Emirates and City walk were successful to attract the tenant demand and footfall. In the year 2016, retail spending has fallen between 5% to 6%, and this was the first time when retail spending has decreased in UAE after the recession in 2008 (Gulfnews.com, 2018). 2017 was very challenging for the UAE retailers due to the local currency and low domestic disposable income. These two factors reduced the purchasing power of the international visitors. Such slow demand leaves a pressure on retail rents; as a result, the landlords offer an incentive to gain the attention of key tenants. In the context of the residential property the rent, sales price, and the transaction have been declining since 2016. In the year 2015, the price declined 6.3%. Due to the low oil price, the residen tial price has declined. In 2017, the domestic supply has increased 2.5%. Such enhancement of property prices in the year 2017 is a great opportunity for the real estate owner. 2017 is considered as the year of change in the real estate market in Dubai. Introduction of the off-plan sale opens new opportunity in the sales market of UAE. The rental rates become lower this year. Many real estate developers offer an attractive payment plan to buyers with low price, which increases the sales in the property market (Bodolica, Spraggon, Shahid, 2018). This off plan sale brings many opportunities for the real state builders. 2017 is the dominating year for the Dubai real estate. Sale has increased up to 55% in this year in the property market. According to the statistical data, there was 18,657 off-plan apartments sales transaction. Apartment sales price increased up to 0.1% in the year 2017 (Gulfnews.com, 2018). Due to decline in the oil price, the rental price has fallen in Dubai that highlights a big threat to rental income. In the year 2017, almost 7,000 residential units are developed in the real estate property in UAE. Overview of Dubai real estates in 2016 and 2017 2017 is considered as the most significant year for Dubai real estate market as this year is the combination of ups and down and leaves a major impact on UAE property market. GDP of Dubai was stable in the year 2017. It was 3.2% and expected to increase up to 3.5% in the year 2018 (Gulfnews.com, 2018). The highly attractive business environment in Dubai attracts the foreign investment, which ensures the growing economy of UAE. Dubai is considered as the most globally diverse place as there are 200 nationalities. This country is considered as the most appealing destinations for the real estate investment in the world. According to the statistics of Dubai Land Departments, in 2016 approx 60,595 real estate transactions took place in Dubai. From such transaction Dh259 billion is added in UAE economy. On the other hand, the year 2017 also focuses on the high foreign investment in Dubai commercial real estate market. Approx Dh344 billion is gained from 22,834 foreign investors belongs to 136 nationalities. However, Dubai overtook London as it is considered as the most preferred location for property investment. Chinese investors have great demand for Dubai to invest in the commercial property market. However, the foreign investors believe that Dubai is a safe destination for investment as it gives long-term return (Agarwal, 2017). As per the report of Global Capital Partners, the total return of the commercial real estate of Dubai varies from 5 to 11 percent. In the context of Dubai, the majority of the return from the investment in commercial property market comes from the increase in rental prices (Buckley Hanieh, 2014). However, Dubai is popular in global commercial real estate market due to its creative design, construction method and luxury apartments. This makes Dubai unique among the other countries in the context of the property market. Dubai market needs more players in residential and commercial real estate market as it will make them develop a diversified real estate market in the international market. Due to the growing population and visitors, the hospitality sectors of UAE needs to provide high-quality housing at an affordable price. On the other hand, in the residential market, the young professionals are looking for affordable housing and apartments. It is important for real estate owner in Du bai to identify the current needs of the market and to meet them properly. Factors that lead the investors to invest in Dubai real estate market The main focus of the investors is short-term capital appreciation, which can be done through the investment in Dubai property market. However, the buyers have an intention to get a good return on the investment (Diaz Hindro, 2017). The investors look for higher yield in the property market thus they need to observe the property prices of different locations in UAE. Different middle market locations such as Discovery garden, Dubai sports city, and Remraam are the most popular cities in Dubai that are preferred by investors to develop housing or commercial building. UAE property market offers the foreigners to own single commercial property such as wear house units and retail office at a pocket-friendly rate. However, in China real estate market is very volatile as a result; they tend to invest in UAE real estate market as it gives them a long-term outcome. In China, there is an extension in the maximum projects; as a result, the delay occurs in the project, which leads the Chinese i nvestors to invest their capital in Dubai real estate market. Investors have to maintain formality in many countries while purchasing a property. However, in Dubai, the investors can purchase the property easily paying the money to the owner. The government rules and policies are easy to follow, and there is less complexity in the foreign investment in Dubai. On the other hand, the geographical proximity of Dubai is another positive aspect of such country, which attracts the foreign investors to invest in this country (Al-Mohana Hatemi, 2016). Many foreign investors come to Dubai easily and spend their capital in Dubai real estate market. Purchasing of real estate in Dubai is a good business strategy as UAE government does not charge any tax on the rental income. This gives a big opportunity to foreign investors to invest in Dubai real estate market. The potential effect of the global real estate crisis on UAE real estate market To reduce the dependency from oil and gas sectors, UAE government has focused on the tourism industry and real estate market to enhance the economic growth of this country (Baum, Mackmin Nunnington, 2017). However, UAE is considered as the global hub based on its continuous development. The primary aim of such global hub is to provide sufficient accommodation to the foreigner investors who want to stay in this country. Dubai is the first city of UAE that enters in real estate market. Real estate sector of Dubai is the most growing business sector in this city. Dubai real estate sector is larger than the hydrocarbon economy in this recent year. Before the global recession, UAE was performing well in real estate market. However, the global recession between the years 2008 to 2009 affected the performance of UAE real estate market. Therefore, the contribution of real estate market in UAE economy was declined due to this global recession. Growth started to rebound in the year 2010, but it was very slow (Al-Mohana Hatemi, 2016). This real estate sector was the most growing sector of Dubai thus; the decline of this sector left a major impact on the UAE economy. For the foreign investors, it was difficult to recover their funds during this time. In 2012, the growth of Dubai real estate was restored, but the recovery process was prolonged. After the year 2013, significant growth has been observed in Dubai real estate sector. In the year 2014 due to the overgrowing expatriate population in Dubai, the demand for commercial and residential property has been increasing rapidly till now. This highlights the good opportunity for the real estate sector to enhance their business in UAE (Tierney, 2017). Conclusion The entire study deals with the property market analysis in the context of UAE. It has been found that real estate business is growing in Dubai in the recent years. The economic recession in 2008 left a big negative impact on Dubai real estate market. This condition began improving in 2010. Dubai real estate market has a great value in the global real estate market as this market is trendy in Dubai. The rule of the UAE government is favourable for Dubai which enhances its real estate market. Foreign investors have to pay less tax for their business, which adds great value to Dubai real estate market. Among the other developing country, Dubai has got a good position for its real estate business. 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