from development to management challenge of new built asset in uae/abu dhabi
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FROM DEVELOPMENT TO MANAGEMENT CHALLENGE OF NEW BUILT ASSET IN UAE/ABU DHABI. By Dr. Mohan Guruswamy Dr. M. Gordon Brown Aldar Properties PJSC Space Analytics - PowerPoint PPT PresentationTRANSCRIPT
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FROM DEVELOPMENT TO MANAGEMENT CHALLENGE OF NEW BUILT ASSET IN UAE/ABU DHABI
By
Dr. Mohan Guruswamy Dr. M. Gordon Brown Aldar Properties PJSC Space Analytics Fellow University of Cambridge Urban Land Institute
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ABU DHABI - United Arab Emirates
CairoKuwait
Doha
RiyadhAbu Dhabi
Dubai
Muscat
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Sheikh Zayed BridgeFerrari World
Helix Hotel Mirage Hotel
Iconic Projects of Abu Dhabi
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The Louvre
Abu Dhabi Performing Arts Centre
Iconic Projects of UAE
Burj Khalifa
Palm Jumeirah
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The World’s Best Futuristic Design BEX Award 2008
ALDAR Headquarters
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Abu Dhabi Statistics
2005 2007 2008 2009
GDP(Million US $)
105,050 149,416 182,666 149,720
Per Capita GDP (000 US $)
76.5 99.3 116.0 91.2
Per Capita Annual Growth
%
26.1 6.0 17.0 -21.5
Construction (Million US $) 7,211 12,887 14,343 15,130
Construction (Growth Rate in
%)25.6 27.4 11.3 5.5
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UAE GDP Forecast
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IMF UPDATE – APRIL 2011
UAE Economy is expected to expand at a steady pace averaging 4% growth over the course of next 4 years.
2011 2012 GLOBAL GDP 4.4% 4.5%
M.E. GDP 4.1% 4.2%UAE GDP 3.3% 3.8%
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Real Estate Market
1 Investor Driven End User Driven
2 Speculative Buying Preference For Completed Property Purchase
3 Off- Plan Sales Model Long Term Model With Secure Cash Flows
4 Seller’s Market Buyer’s Market
5 High End Housing Middle & Lower Income Housing
6 Premium Retail & Commercial Economical Retail & Commercial
7 Building & Developing Maintaining & Managing Assets
8 More Demand & Less Supply More Supply & Relatively Less Demand
FROM TO
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UAE’s PROJECTS – FOCUS ON HIGH-END MARKET
3
2
1
4
8
5
6
7
PRICE HIGH
HIGH
LOW
LOW
PERCEIVED ADDED VALUE
FOCUSSED DIFFERENTIATION
DIFFERENTIATIONHYBRID
LOW PRICE
NOFRILLS
ALFALAH
BURJ AL ARABALRAHA BEACH
PALM JUMEIRAHBURJ KHALIFAFERRARI WORLDAldar HQ
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CHALLENGES FACED
- PHENOMENAL GROWTH IN SHORT TIME Average 15% to 20% Growth Per Annum
- LACK OF WHOLISTIC VIEW Absence of an Integrated Approach Across Lifecycle
- CHANGE IN SKILL MIX REQUIREMENT Functional Competencies Required for Operations/Management are Different from Development
- CAPABILITY BUILDING FOR OPERATION/ MANAGEMENT Lack of Proactive Thinking to Build Capability for Operation/Management
- LIMITED UNDERSTANDING OF MARKET & CUSTOMERS Inadequate Customer Focus in Development Stage
- SHIFT IN DEMAND PATTERN From High End Housing to Economical Housing From Premium Retail/Commercial Space to Affordable Space
- EMPHASIS ON COST REDUCTION Developers Focus on Cost Reduction and Operators/Managers Focus on Value for Customers
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APPROCAHES TO OVERCOME CHALLENGES
- CAPABILITY BUILDING Establish An Academy to Develop Competencies in Managing Built Environment
- LIFE-CYCLE PERSPECTIVE Integrated Approach Encompassing Entire Lifecycle
- STRATEGIC FIT BETWEEN MARKET DEMAND & PRODUCT DEVELOPMENT Follow STP Marketing; Build To Demand
- FLEXIBLE CONSTRUCTION SYSTEM More Proactive Response to Market Trend
- REAL ESTATE REGULATION AND LAW Government To Establish Clear Laws and Regulations
- VALUE PROPOSITION In Development Stage, Greater Emphasis on Value for Money than Cost Reduction
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THANK YOU