It’s all about Jobs in Middle East

Not the Jobs who sadly left us too early, but employment. Various recent studies have pointed out how employment in the region and particularly the Middle East is on the rise. According to findings released by The Monster Employment Index (monster.com), Middle East online recruitment in September escalated to its highest levels in the past 12 months.

The findings of the index show that major economies like KSA, UAE and Qatar showed ongoing positive momentum in hiring trends in sectors like retail trade, logistics and their related occupation groups like finance and accounting.

What does this have to do with real-estate?

Increase in job opportunity has a direct impact on the demand for real-estate. One of the reasons why companies are able to attract more talent to the region is because accommodation costs are now affordable. New expatriate workers who had previously found it hard to save in the region because of rising cost of housing, now have a wide variety of options available.

Adding to this is the easier terms for buyers and leasers from banks and real-estate agencies. What was previously thought of as a hassle or nightmare – finding decent accommodation – has now become simple. Government authorities such as RERA in Dubai have also brought more transparency into the paperwork of how contracts are drawn up and implemented. Resident’s associations are becoming more vocal and are monitoring their expenses to keep maintenance costs low. All these factors are bringing in a new found momentum to the real-estate sector.

Sure, there might be some of you out there thinking, Kabir Mulchandani is in the real estate business, he will link anything to show demand is rising. So don’t just take Kabir’s word for it. Let’s see what the California State University Fullerton, has to say about this.
Researchers Youguo Liang and Willard McIntosh found that, “Employment growth contributes to property markets return in the short run.” If employment keeps rising, growth will rise too. In a highly expatriate employment driven market like ours, this has a huge impact on real-estate markets.

On occupation six-month trends, Monster survey shows  that critical areas such as healthcare (up three per cent) have been registering successive month-on-month growth since June ’11. We still have a long way to go before we reach the pre 2008 growth levels but we have certainly crossed the dip.

Adding to this, the UAE improved its global ranking by two to reach 33 this year in the World Bank's annual Doing Business report. The new report by the World Bank and the International Finance Corporation (IFC) — Doing Business 2012: Doing Business in a More Transparent World — assesses regulations affecting domestic firms in 183 economies. The report finds that 11 out of 18 economies in the Middle East and North Africa improved regulations for entrepreneurs in the past year, despite political and economic uncertainty in the region.

The danger of being optimistic is that unlike a pessimist you don’t get the luxury of being pleasantly proved wrong. But it’s one risk Kabir Mulchandani is willing to take. 2008 was a long time ago, jobs and low costs are bringing in more people and this will fuel more demand. And this time we are better prepared to manage our real-estate market.

Kabir Mulchandani
Skai Holdings
Dubai-UAE

Kabir Mulchandani Gets Clean Chit - Gulf News

Dynasty Al Zarooni Real Estate is considering legal action against some Indian publications and those behind an alleged 'smear campaign' to malign its reputation, officials said. The campaign has allegedly been launched by a former employee of Kabir Mulchandani, chairman of Dynasty Zarooni, who was fired for alleged 'wrongdoing', Gulf News has learnt.

Two Indian publications ran reports referring to some investors' complaint that "he [Mulchandani] had misled them by showing a different property and selling them another". One of the reports said "Dubai's Real Estate Regulatory Authority [Rera] is probing Mulchandani's operations after nearly 30 NRIs from India, Russia and UK complained online".

Dynasty Zarooni, formed in 2005, is a joint venture between Hilal Al Zarooni and Kabir Mulchandani. The company has been engaged in developing, buying and selling residential and commercial properties to wholesale investors and cashing in on soaring prices and growing demand that fetched solid returns.

"Dynasty Zarooni, having a real estate portfolio in excess of Dh20 billion, has been the target of a series of false accusations in relation to complaints from investors, with regards to their Ebony & Ivory project in Jumeirah Lakes Towers," the company said in an e-mailed statement.

The project is being developed by Al Fajer Properties, a leading property developer in the UAE, managed by its president Shaikh Maktoum Hasher Al Maktoum.Over the past week there have been a number of internet blog stories and these culminating with a article in the Indian media, incorrectly quoting Rera officials, the company said.

The Ebony & Ivory development project is a Dh2.7 billion project, which was originally sold out within hours of its launch. "To date, the construction of all of the towers being developed by Al Fajer Properties is progressing rapidly," the statement said.Meanwhile, the Rera has given Dynasty Zarooni a clean chit.

"Dynasty Al Zarooni Real Estate has no violations relating to the registration of property brokers until August 25, 2008," Rera said in a letter yesterday, a copy of which was obtained by Gulf News.Hilal Al Zarooni, president of Dynasty Zarooni, told Gulf News, "We are pursuing legal action against those who are behind this campaign that is damaging our reputation."These imposters have not only targeted Dynasty Zarooni, but the UAE real estate market as a whole. The imposters should be brought to justice." he said.

Gulf News - By Saifur Rahman (Business Editor)

Kabir Mulchandani
Dubai-UAE