Property Finder CEO, Michael Lahyani, touches on the good, the bad and the ugly of 2018 and identifies the movements of the market and how we can prepare for the near future.
2018 has been a remarkably tough year for our industry, but one that has helped define how the future will look in terms of supply and demand. The impact of Expo 2020 on the business landscape is at the forefront of my mind, but, individual perspectives will define how that landscape is going to look over the coming years.
Some may have written this year off as another down year, while rental prices and sales prices were on the low side, transaction volumes receded further in most areas, oil prices were still suppressed and rising interest rates put additional pressure on the market.
But, if we recall the storm that was the global financial crisis ten years ago, we can remind ourselves that it was those that were truly innovative that were able to come out stronger.
At Property Finder, the tougher economic climate allowed us to recreate our business model to gain the advantage over our competitors.
In times like these, it is vital that all of us, whether at property portals or as real estate agents on the ground, work hard in order to deliver impeccable service, as market conditions make the competition ever more fierce. As the economy is diversifying and maturing, profit margins will become smaller, but the market is growing in different ways and in fact, that translates to new opportunities and horizons. In a dynamic and fast moving market such as Dubai, you have to constantly be on your toes in order to stay on top.
As businesses have absorbed VAT, we are hopeful that we are going to start reaping the benefits of increased government investment. Real estate, construction and manufacturing are all industries to watch, as they are sectors with high growth rates, which will also fuel the economy.
Looking Ahead To 2019
This will be the year of market leaders. If you’re amongst the players that shape your industry, and you have a belief that many of your competitors don’t have what it takes to survive in the market, you need to further define what ultimately sets you apart and use it to drive your business forward. 2019 will also be the year of preparation, as Dubai, and therefore all of us, will be on the world’s stage in 2020. It is time to start putting plans and structures in place to gear up for the projected increase in economic activity that the Expo is going to bring to the country.
Looking beyond the number crunching for a moment, 2019 has also been designated as the Year of Tolerance in the UAE. This initiative makes me so proud to live in a country that enshrines such principles into a nation-wide mandate. The Year of Tolerance, along with the confirmation of the Pope’s visit in the coming months is a real signal of openness and acceptance. As other parts of the world become increasingly isolated as they entrench themselves in ideology, this wave of renewed tolerance sounds a rare note of optimism and has the potential to further boost the UAE’s status as a haven, not just for business, but as a safe and peaceful place to live for people of all nationalities and cultures.
At Property Finder Group, 2018 came to a close on a tremendous high point, as the company closed a historic $120 million funding round last November. Funds will be invested into building our most innovative products yet, which will continue to support our mission of bringing more transparency and information to the six million property seekers visiting our platform each and every month. This is a major milestone, not only for our company, but also for the PropTech industry in the region.
What we have been seeing is really not a down market, this is our new reality. The stakes are high, but the rewards are even higher and it is more important than ever that we put our heads down and do some of our most meaningful work. To us, the future looks bright.
MICHAEL LAHYANI
CEO and Founder
This article was originally published in Property Finder Trends Vol. 5
