Not so many years ago, it seemed utterly fantastical that we could make a ‘telephone call’ via a smart phone and actually see the person we were speaking to, now we take it for granted.

The same is happening within our homes – they are becoming smart too and we can connect with devices and gadgets within our homes, from anywhere that has an internet connection.

So, curtains, lights, air conditioning, security cameras, even the oven are now becoming almost commonplace, thanks principally to the Internet of Things (IoT). You may have heard a lot about IoT, but if you haven’t, or you don’t really understand what it is, here’s a brief overview.

IoT AND SMART HOME AUTOMATION

Essentially, IoT describes the network of ‘gadgets’ that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet.

So, from a layman’s perspective, it provides the platform to enable these devices to ‘talk’ to each other, whether that is through an internet connection or a dedicated App such as Apple’s Home App, which doesn’t even need a WiFi bridge. But let us not get too technical here, I want to focus on the gadgets and how they are almost dictating our lifestyle choices and if not, they are certainly providing further options.

The beauty of smart home devices is that they do not need to be integrated into a new build design, they can so easily be retrofitted, with WiFi, complicated and expensive wiring is a thing of the past. So, virtually any home can become smart, but what can we realistically expect in the coming years, what are the hot gadgets that will make our lives healthier, more convenient, more secure, more efficient and more sustainable.

THE RISE OF SMART HOME GADGETS

I have chosen three gadgets that will between them, cover all of these points. Let me start with Video Doorbells and one of the more popular brands is Ring. With instant mobile alerts, using crystal-clear 1080HD video and two-way talk and you can see, hear and speak to visitors at your front door straight from your smartphone, tablet or PC, wherever you are.

It also has adjustable motion sensors, infrared night vision, live on-demand video and audio and smart security, if you want to just check that your home is secure. There are also other gadgets that can draw curtains and put lights on at night while you are away, further deterring unwanted visitors. On a side note, there are also indoor cameras that have been on the market for many years, which are ideal for watching pets, children, maids or even handymen carrying out work when you are away from home.

Another gadget that I would like to talk about is the third generation Nest Learning Thermostat, one of the market-leaders. It has a built-in auto-schedule, which ‘learns’ from your previous selections and programs itself, or alternatively you can manually change the temperature from anywhere using your phone, tablet or laptop. It also uses sensors, algorithms and even your phone’s location to save energy when no one’s at home

SUSTAINABLE: CREATING THE HOME OF THE FUTURE

And here is the sustainability angle. It is an interesting point that your thermostat at home controls up to 50% of your total energy bill – more than electrical appliances and electronic devices. Independent studies have shown that smart thermostats can save on average, up to 15% on your A/C bills.

There are many other features for an automated home that I could have mentioned, such as robotic vacuum cleaners, smart cooking appliances, and even smart beds, that have biometric sensors that can help you sleep better. However, I will finish with something that has been close to everybody’s heart over the past 12 months, health and fitness.

Hiring your own personal trainer, can be quite an expensive business, even if you have been taking classes via Zoom during the COVID restrictions. But here is another smart option. Whether you are an absolute beginner or a streamlined professional, there are a range of smart training machines, complete with display screen, that use 3D sensors and AI to advise you of the correct form and weight you should be lifting for each exercise. Peloton in one such company that has taken the fitness world by storm.

It will count your number of reps and offer real-time feedback about your progress to make sure that you are getting the most out of the exercise, without injuring yourself. It can also hook your screen up with on-demand workout sessions carried out by fully qualified instructors.

Without question, automated homes are going to get even smarter, which will undoubtedly offer us more lifestyle choices than ever before – more time for leisure pursuits, hobbies and entertainment, safety and peace of mind while we are travelling, as well as allowing us more time to spend with our friends and families rather than doing mundane housework and they are good for the environment.

 

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Property developer Orascom Development announced the launch of the first phase of the HillSide Villas project by O West in the township early this week.

The announcement comes as a bid to match growing demand for residential units in the township, an Egyptian daily reported. Located in West Cairo, HillSide Villas will span 1000 acres, and include a range of units, waterfronts, parks and green spaces.

Chairperson of Orascom Development Samih Sawiris noted that having withstood the COVID-19 pandemic with government support, real estate remains a “safe haven” for investments.

WHAT IS O WEST?

O West is a town project by Orascom Development, located in Egypt’s Sixth of October city. In addition to HillSide Villas, neighbourhoods include Tulwa, Qemet, Whyt, and the commercial O Business District. Hillside Villas will be situated within Qemet.

Orascom Development envisions the project as a “sports, arts and health hub,” the report cited Tarek Kamel, CEO of O West, as saying.

The developer is finalising the masterplan for the O West Club. When completed, the club would be the biggest social and sports club in West Cairo, covering 5% of area in the township. The membership fee for the club cost EGP 150,000, the company said. The club clocked 160 new memberships in Q1 2021, with a total of 1,642 club memberships as of the first quarter.

O West is being developed using the same model as resort town El Gouna, another project by Orascom Development, the report further stated. 

Meanwhile, Orascom Development aims to increase the number of units in Qemet during the second half of 2021. The EGP 7.5 billion neighbourhood, which was launched in February this year, is in increasing demand.

ORASCOM DEVELOPMENT UPDATES Q1 2021 PERFORMANCE

In a quarterly earnings report, Orascom Development noted that the company made sales of EGP 2.1 billion in Q1 2021. This represented a growth of 37% from the same period last year. 

In Q1 this year, O West was the second largest contributor to new non-commercial real estate sales, following El Gouna. Average selling prices for O West properties also went up by 24.8% as compared to Q1 2020.

In terms of sales within the township, Orascom Development sold 8.1% more units this quarter, with net sales reaching EGP 774.4 million. Total quarterly revenues of the township for Q1 2021 stood at EGP 360.2 million.

_{Photo credit: www.owest.com.eg/neighborhoods/Hillside%20Villas}

 

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Dubai Expo 2020 has been cleared to have a dedicated 3D printing zone. In a meeting of The Executive Council, Dubai Crown Prince and Council Chairman Sheikh Hamdan bin Mohammed Al Maktoum approved a specialised, integrated 3D printing zone at the Dubai Expo this year.

“By launching such initiatives, we aim to achieve a quantum leap in the development of future-oriented industries that can have a significant positive impact on sustainable development,” Sheikh Hamdan said about the announcement. “This initiative is also part of our efforts to reinforce Dubai’s position as a global hub for future technologies and R&D.”

The meeting was also attended by Deputy Ruler of Dubai Sheikh Maktoum bin Mohammed Al Maktoum.

3D PRINTING IN DUBAI

The UAE is leading the MENA region’s 3D printing efforts. The country has a number of 3D printed infrastructure projects to its name, with more expected out of the announcement.

Dubai is home to the world’s first 3D printed office building in 2016, and later built the world's largest 3D-printed building in 2019. Just one printer and three workers were required in the making of the building. Built by US company Apis Cor, the walls of the 3D printed building are placed on a concrete foundation, and reinforced with rebar and concrete.

Real estate developer Emaar Properties also announced in the same year that it will be building its first 3D printed 

home in Dubai, at residential complex Arabian Ranches III. As an early adopter of the technology, the move would lend Emaar the benefits of reduced construction costs, efficient use of materials, and higher levels of sustainability, the company had said.

BEYOND EXPO 2020

The Expo 2020 zone seeks to attract entrepreneurs, investors and researchers to Dubai’s Expo 2020. It is also in line with Dubai’s 3D printing strategy, which aims to promote Dubai as a global hub for 3D printing.

The strategy was announced in April 2016 by Prime Minister of the UAE and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum. It seeks to make Dubai a leading 3D printing hub by 2030, with added focus on construction, medical products, and consumer products.

Towards this, five key inputs have been highlighted as pillars of the strategy. These include infrastructure, legislative structure, funding, talent, and market demand.

The strategy has a goal of 25% of buildings in Dubai to be made by 3D printing technology by 2030.

_{Photo Credit: Dubai Media Office, www.archdaily.com/931328/mean-design-3d-printed-concrete-roundabout-pavilion-for-expo-2020-dubai}

 

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Little Island, a USD 260 million public park located on the Hudson River in New York, opened to public access last week. The park is funded by television mogul Barry Diller and fashion designer Diane Von Furstenberg through the husband-wife duo’s Diller – von Furstenberg Family Foundation.

British designer Thomas Heatherwick’s Heatherwick Studio provided designs for the park, which was built in partnership with landscape architecture firm MNLA (Signe Nielsen provided the landscape design) and engineering company Arup. Overall, over 16 construction, engineering, and design teams were involved in the making of Little Island.

Plans for the park were off in 2017 after legal issues popped up. Eventually, city governor Andrew Cuomo stepped in to get the project back on track. 

Little Island is a historical location, cultural venue and public park rolled into one. The island park has been built on the remnants of Pier 54, memorable for being the point of arrival for survivors of the sunk Titanic in 1912.

The Diller – von Furstenberg Family Foundation has committed an additional $120 million to Little Island over the next decade for maintenance and theatrical productions.

THE MANY FACETS OF LITTLE ISLAND

Two broad bridges extending from the Hudson waterfront in Meatpacking District lead to the 2.7 acre-wide undulating quadrangle. The supporting structure is made of 267 precast concrete piles, wedged deep into the riverbed, between leftover wood piles from Pier 54 and Pier 56. The piles were fabricated off site and transported on barges to the Hudson River.

Of the total 267 piles, 132 support the tulip petal-shaped concrete ‘pots', each of which comprises 4-6 concrete petals. No two pots are the same, and each weighs about 75 tons. Steel plates connect the pots together, in which one can find soil, lawns, overlooks, and trees.

The island’s 3D topography is home to over 350 species of flowers, trees and shrubs, a 687-seat amphitheater, a central plaza called the Playground, and a stage and lawn space. Over 66,000 bulbs and 114 trees have been at Little Island so far. Plantings are varied to allow seasonal changes to reflect in the park’s green landscapes.

_{Photo credit: www.littleisland.org}

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There’s an exclusive club based out of the US through which multi-millionaires trade in advice, experiences and opportunities. It’s called Tiger 21 and to join you must be able to report assets valued at well over USD 10 million. But that’s no guarantee: the average net worth of its members comes in at around USD 75 million — collectively the group has the purchasing power of a small country.

The members of Tiger 21 have configured their portfolios around real estate, at 27 percent, followed by private equity at 26 percent and public equity at 22 percent. But after the outbreak of the COVID-19 pandemic, members reduced their real estate exposure to 26 percent — so they didn’t flee, they pruned. And Knight Frank’s latest Attitudes Survey tells us there is still quite the appetite for property among younger ultra-high-net-worth individuals (UHNWIs), particularly the growing base of young Asian UHNWIs.

It’s good practice to keep an eye on where the ‘one percent’ parks their money: it affords a clearer reading of economic trends. And the recent behaviour of the ultra-wealthy tells us in spite of near-term uncertainty, real estate continues to hold long-term appeal.

‘RESILIENT BUT UNEVEN’

The pandemic battered economies and disrupted deals. In the first half of 2020 alone, global real estate investment fell 33 per cent. Asia-Pacific took the biggest hit with volumes down 45 percent from the year-earlier period, then the Americas with a 36 percent drop, and last Europe, the Middle East, and Africa with a 19 percent drop.

But multiplying inoculation rates continued government stimulus programmes and improving economies are ushering real estate into recovery, says the latest report from JLL. Global real estate transaction volumes for the first quarter of 2021 totalled USD 187 billion, representing a 13 percent year-on-year decline, which adds up to “a resilient but uneven stage within the broader investment recovery”.

So, an uneven recovery across sectors and geographies: mature markets such as the US, the UK, France and Japan recorded strong performances. The appetite for high-quality core and core-plus real estate investments persisted, and the demand for opportunistic investments increased. Logistics and multi-family investments represented 63 percent of all opportunistic transactions, up from 44 percent in the first quarter of 2020.

Incidentally, Europe posted the strongest first quarter on record for industrial and logistics investment with over USD 12.1 billion transacted — over 40 percent higher than the five-year average for the same period. And investment into its multi-family sector saw a 66 per cent increase, led by the UK, Germany and France. In Asia-Pacific, Japan was the most liquid market, in part owing to the persistent appetite for multi-family assets in Tokyo, Osaka and Nagoya.

LOGISTICS: MAJOR BENEFICIARY IN 2021

Markets historically concentrated with office and retail investments also experienced gains in investor confidence, particularly select markets in Asia, such as Singapore and Hong Kong, where cultural norms and the housing infrastructure limit widespread work-from-home (WFH) policies.

The expectation now is for a stronger second half of the year as pent-up demand starts to filter through the global economy. According to Savills, logistics is expected to be the major beneficiary throughout the year, but the challenge for investors will be finding high-quality stock. Office is forecast to remain the largest sector and the core investment of choice, while residential may attract a growing share of global investment, supported by strong underlying fundamentals and cross-border investors growing and consolidating portfolios.

 

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2020 was chaotic for offices and office-goers. Not only did it force them to change the way they worked, it also eventually pushed them to rethink how work and workspaces have functioned so far. 

And although work-from-home was one of the most disruptive things to have taken place across global offices, the idea that this would be feasible for the longer term vanished almost as soon as it began to take shape.

There definitely is a “new normal” for the future of the workplace, and it’s going to be both hybrid, and smart.

WHAT OCCUPANTS EXPECT FROM OFFICES

In a global survey from September 2020, two-thirds of employee respondents expressed a wish for a mix of remote and office work post-pandemic. A majority of companies supported this workstyle. 

In  fact, 81% suggested that the office would remain a fundamental requirement, either as a primary work destination, or in a hybrid format. It’s easy to see why. Office spaces are more conducive to networking, client relationships, and staff development – integral elements of company culture.

At the same time however, in addition to risks of community transmission and concern around employee health, respondents noted that employee reluctance to return to office spaces was a top reason that prevented them from getting more employees back into offices. While 67% of respondents expected that all employees would have access to physical offices by mid-2021, second and third waves of COVID-19 have led to complications (and more lockdowns).

THE FUTURE OF THE WORKPLACE

A compelling trend in conversations surrounding offices of the future is that they be redesigned to adapt to the creative, social and safety needs of employees. In this respect, offices need to be seen as spaces that can accommodate a range of human activities (including remote ones), rather than just plug-and-play spaces.

This calls for designing office spaces keeping distancing and smaller occupant numbers in mind, while making room for decentralised working hubs for remote or hybrid workforces. 

With virtual, internet and cloud technologies making an indisputable use-case in a post-pandemic world, and smart buildings gaining momentum, the future of the workplace will also be tech-forward. This includes technology that will optimise space and energy utilisation, HVAC systems that consider safety precautions, and intuitive, smart sensors that can make the office experience more comfortable for the workforce.

In the future of the workplace, this all leads to employee-centric offices that are designed to support occupants using these spaces, becoming machines of convenience, flexibility, and efficiency.

 

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Earlier this month, Aldar Properties announced an investment in proptech venture investment firm Fifth Wall’s European Real Estate Technology Fund. 

With the investment, Aldar became the first limited partner to invest in the fund from the MENA region, adding to Aldar’s other moves in the proptech space. It also gave Aldar access to Fifth Wall’s proptech startup portfolio in Europe.

Meanwhile, proptech startup Hupsy raised a recent round of funding. While the company did not disclose the amount, the round was amongst the largest seed rounds to be raised by proptech companies in the MENA regions, the company claimed.

These developments point to proptech’s emerging popularity in the MENA region. Here’s a look at what’s the drift for proptech companies, and how real estate developers across the MENA region are playing into this space.

PROPTECH 2020

Interest around smart buildings and building automation systems was one of the most pioneering trends in MENA’s proptech market in 2020. In this respect, Dubai, Abu Dhabi, Doha and Riyadh are some of the most tech-forward cities to have emerged from the region. 

The UAE’s Al Ain City Municipality and artificial intelligence (AI) company Saal, for instance, signed an MoU last year to develop AI solutions to support smart city initiatives in the city.

Digitalisation has also picked up in the region across multiple proptech areas, including real estate valuations, property viewings and in financial markets as well. 

Last year, Dubai Islamic Bank listed its USD 1 billion Sharia-compliant sukuk on Nasdaq Dubai, while Dubai Land Development introduced AI to its property valuations process to cut time and costs.

MORE TO COME FOR PROPTECH COMPANIES

Proptech trends are expected to pick pace in 2021, with focus on smart, virtual and contactless technologies. Specifically, property developers are looking at a range of proptech solutions,  including cloud-based operational management,  computer-aided facility management, and tech-optimised HVAC systems.

It’s still early innings for proptech worldwide, as compared to other maturing industries such as fintech or healthtech. For proptech companies in the MENA region, this represents an opportunity to seize early mover’s advantage by identifying and solving for tangible pain points early on. 

 

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Internet access and digitalisation gained global impetus in 2020, and COVID-19 put the onus on government bodies to amp up monitoring initiatives as a means to curb the spread of the virus. In this respect, the demand for data centres has been climbing, and UAE data centres have a lot to gain.

The global market for data centres is expected to grow at an annual rate of 4.5% until 2026. The Middle East data centre market, however, beats the average, with 7% forecasted annual growth rate for the period, according to research by Reportlinker.

DATA CENTRES AS AN INVESTMENT OPPORTUNITY

The study by Reportlinker suggested that the outbreak of the pandemic led to a growth in demand for internet services, data analytics, 5G, and Internet of Things devices (especially in healthcare).

Further, social distancing and lockdowns added pressure on enterprises to migrate their on-premises data infrastructure to a more hybrid format through cloud technology. This was on top of other tech initiatives that were already underway across the world, both at the enterprise level and by government bodies.

The resulting demand has brought the market for data centres into the spotlight. Yields on data centres became much more attractive, growth potential leaped, and investors and developers started to look more closely at investment opportunities as yield compression grew stronger.

INVESTMENT POTENTIAL FOR UAE DATA CENTRES

Globally, data centres tend to be clustered in the US, Europe, and APAC region. At the same time, the UAE recently emerged as one of the top destinations for new data centres, joining the likes of the US, Singapore, Japan, Sweden, Norway, and Denmark. A 2020 report also noted that the UAE was a preferred location for data centre investments in the Middle East. 

Amazon Web Services (AWS) announced this week that it will be opening a new infrastructure region in the UAE, which will be home to three new data centres. This will be the second such AWS infrastructure region in the Middle East, after Bahrain. 

The deal “supports the UAE’s focus on promoting technology innovation that has made it a thriving global hub for entrepreneurs, e-governments, and multinational businesses,” Peter DeSantis, a senior VP at AWS, said

Last year, du had also announced that it would be opening two new UAE data centres, located at Dubai Silicon Oasis and the Khalifa Industrial Zone Abu Dhabi.

Interest from local and international players such as these indicate a growing market for UAE data centres, and a valuable market opportunity for investors in this space.

_{Photo credit: www.datacentercatalog.com/united-arab-emirates , www.linesight.com/en-us/projects/nbad/}

 

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The Sovereign Fund of Egypt, along with Egyptian financial services company EFG Hermes, have announced that they will be acquiring a 76% cumulative stake in Egypt’s Arab Investment Bank, for a capital injection of nearly EGP 4 billion.

Under the agreement, Egypt’s sovereign wealth fund will become the second-largest shareholder in the bank, with a stake of 25%. EFG Hermes, on the other hand, will hold a majority stake of 51%.

The remaining 24% will be held by the National Investment Bank, which was previously a majority shareholder in Arab Investment Bank. 

Having received cabinet approval, the deal is expected to close in Q3 202, after fulfilling other remaining conditions and gaining final approval from the Central Bank of Egypt. 

ARAB INVESTMENT BANK MEETS NEW MINIMUM CAPITAL REQUIREMENTS

With the acquisition, 423 million shares at EGP 6.03, amounting to a total of EGP 2.55 billion, will be newly issued to EFG Hermes. Further, 207 million shares at the same price will be issued to The Sovereign Fund of Egypt for EGP 1.25 billion.

The acquisition will increase Arab Investment Bank’s paid up capital to EGP 5 billion, in compliance with the requirements of a new Egyptian Banking Law that came into effect last year.

The new law increased minimum capital requirements from the previous EGP 500 million, to EGP 5 billion for Egyptian banks. Digital and specialised banks are excluded from this requirement. 

A STRATEGIC MOVE FOR EGYPT'S SOVEREIGN WEALTH FUND AND EFG HERMES

Egypt’s Minister of Planning and Economic Development, and Chairperson of the country’s sovereign wealth fund, Dr. Hala El Said noted that the deal showcases the sovereign fund’s leanings towards public-private partnerships to restructure and generate returns on state-owned assets. 

Said added that Arab Investment Bank’s financial indicators and competitiveness can be expected to improve with the transaction. The announcement was also in line with the objectives of Egypt’s Vision 2030. These include knowledge-based economic growth and digital transformation, a resilient and competitive economy, financial inclusion, and improved employment rates and  business environment.

Moving forward, Arab Investment Bank will be focusing on small-to-medium enterprise clients, CEO of the sovereign wealth fund Ayman Soliman said. Soliman added that the deal prefaces many more to come out of a cooperation protocol that the fund signed with the National Investment Bank.

For EFG Hermes, the deal represents the company’s diversification strategy, as it makes efforts to become an “all-inclusive universal-access financial corporation” in emerging markets, EFG Hermes CEO Karim Awad said.

 

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