Monday, December 7, 2009

Chinese businessmen hit by Dubai property crisis

When many mega-structures, including the world's tallest building Dubai Tower, kept on rising from the sands in the Middle East, Chinese investor's confidence was sky high on Dubai property market as well.

But one body was going verby memory, if the trust was humiliated by a debt crunch that pricking property bubbles in the emirate.

"Investing in real estate was quite popular among Chinese male sake in Dubai for a long time. Nobody expects eiendom mark would tumble: the owner price rose only to about 20,000 to 30,000 Yuan a square meter in the emirate by beneficiaries border investors," said Chen Zhiyuan , Director of Wenzhou Chinese Chamber of Commerce in Dubai.

Speculation in property is actually quite profitable for the bubble bars, Wang said.

"The money delivered faster than the traditional business and thus attract increasing hot money," Wang said.

He said Chinese investors have bought one or two woonstelle usually on the first, then the profits drove them to join hands and an entire floor or building to purchase.

Take Wenzhou investors example, they usually vasgespyker down investment in a dinee, on which project to invest and how much to invest, said Wang.

Wenzhou, in east China's Zhejiang Province, is known for its migrants who left their native country to do business Oorsee, with a reputation for entrepreneurial start restaurants, retail and wholesale businesses Oorsee.

Most investors believe that the crisis in Dubai real estate sound the alarm bell for China real estate market.

"China's eiendom mark the legs almost at the same time as Dubai's, but at a rate much higher than Dubai in the past ten years," Chen said.

In many Chinese cities first, generally flat price 30,000 Yuan in the core areas exceeded, Chen said.

Feng Fei, director of the Unit Ministry Navorsing Bedryf economy in the Center for Development of the State Council, said China must now bubbles in property and equity markets amid the current liquidity looks rich capital.

Despite the investment losses in eiendom, Chinese sake manne reported little impact from Dubai debt misery in other sectors.

"The crisis was mainly caused by the debt misery 'mega-projects and the exodus of foreign investment, property and financial services hits hard. Imports and exports of Dubai is not serious hit," says Fang Xiaoqiang, general manager of Longfei Import and Export limited company based in Yiwu, Zhejiang Province.

Chen Fang's considered response, saying that only those who borrowed too highly spekuleer with large property losses, and most Chinese sake masculine feel happy if they only spared a proportion of capital to property investment and not with their main businesses.

Hu Bin, CEO of Shanghai Zhou Zhong International Group company, is investing 28 million U.S. dollars of an artificial island in Dubai in 2007 purchase.

Construction of the island, with 1.2 billion Yuan of investment, is scheduled for completion in 2010, but geskors after the global financial crisis, Hu said.

"This is normal for men suffering sake crisis. The Dubai World debt crunch this time is not as devastating as the global financial crisis last year," Hu said.

Despite many uncertainties surrounding the majority of Chinese investors in Dubai is confident the future and the restoration of its property market, "Chen said.

Monday, November 23, 2009

Dubai PE firm raised $375 million for real estate and small business funding

Abraaj Capital, a Private Equity firm in the Middle East, announced that it has completed a $375 million capital increase to existing shareholders, which increases the company's paid-in capital to US$ 1.5 billion.

According to the FT, Abraaj will focus on real estate and small businesses, as well as trying to acquire an overseas competitor looking to raise its regional exposure.

Their full press release follows:
Abraaj Capital Holdings Limited (the parent entity for the Abraaj Group and its associated funds) announces that it has completed a US$ 375 million capital increase to existing shareholders, strengthening its balance sheet to capitalise on strategic buying opportunities, expand its geographic and product coverage, and consolidate its market-leading position.

The rights issue which increases the company's paid-in capital to US$ 1.5 billion was fully subscribed, demonstrating strong confidence in and commitment to both Abraaj Capital and the investment opportunity in the Middle East, North Africa and South Asia (MENASA). Abraaj is the region's largest private equity group.

Use of the proceeds will include seeding new funds to take advantage of an attractive investment environment, as well as possibly executing strategic opportunities for Abraaj itself to expand its sphere of operations. This will also help accelerate and enhance long-term shareholder value by protecting some of the unlocked value in the balance sheet.

Sheikh Abdulrahman al Turki, Chairman of Abraaj Capital Holdings Limited, said: "This initiative will enhance value for all Abraaj shareholders and allow the firm to consummate opportunities in an expedient manner and at an interesting price-point in the cycle, while also retaining the option to position itself for a successful liquidity event in the future."

"The success of the rights issue, with its focus on raising strategic capital, stands in contrast to the current global fundraising environment. On a consolidated basis, the investment portfolio of the funds Abraaj manages is healthy on account of robust performance of our portfolio companies. Most of these operate in defensive or growth-oriented industries that are less impacted by the recession."

Arif Naqvi, Founder and Group CEO of Abraaj Capital Holdings Limited, added: "Abraaj Capital has widened its lead as the top private equity firm in the region. As a result of our investment in our people and processes, not only is the short-term impact of the global downturn minimal on us, the long-term prospects for our business are probably better than at any point in the past. The economic environment has resulted in interesting opportunities. Asset prices are more reasonable, aspiring regional and global competition has largely retreated, and consolidation opportunities, both for our firm and our portfolio companies, are available."

About Abraaj Capital: Dubai-based Abraaj Capital is the largest private equity group in the Middle East, North Africa and South Asia (MENASA). Since inception in 2002, it has raised about US$ 7 billion and distributed almost US$ 3 billion to investors. It has made more than 35 investments in 11 countries and exited 20. The group operates offices in five countries, including Saudi Arabia, Egypt and Turkey. About 155 people work in Abraaj, including around 75 world-class investment professionals. Abraaj has holdings in some 25 companies, including some of the region's most prominent, such as Air Arabia, the region's biggest low-cost carrier; Acibadem Healthcare Group, Turkey's biggest privately owned operator of premium hospitals; and Al Borg, the Middle East's biggest medical-testing laboratory company. Abraaj has won several international awards, including 'Middle Eastern Private Equity Firm of the Year' from London-based Private Equity International four years in a row. Abraaj Capital Ltd., a member of the Abraaj Capital group, is licensed by the Dubai Financial Services Authority, while the group is also an associate member of the European Venture Capital Association. Abraaj's commitments to Corporate Social Responsibility include a US$ 10 million educational trust fund for Palestinian children who lost parents during conflict in Gaza in December 2008 and January 2009. The Abraaj Capital Art Prize, the world's most generous art prize, is designed to support artists from the MENASA region.

Source: dubaibeat.com

Buy Property in Dubai

For the global investors, Dubai has become the hottest place to invest in. Dubai is a land of promise with its Amazing developments and projects that have captured the attention of the investor world wide. To give impetus to this already building excitement was the implication of the May 2002 law that facilitated the Dubai property by foreigners.

There is approximately $901 billion that has been invested in the property of Dubai some of which are complete while others which are in its developing stages. With this kind of massive investments, the Dubai real estate market is beckoning investors far and wide. Dubai is the investor’s paradise, here the investors are spoilt for choice, and Dubai offers the ideal environment to buy property. Here you can╚ invest in towering buildings to beach villas to restaurants, you name it and you have it. Such is the lure of Dubai that it has attracted several star celebrities such as the soccer star David Beckham and his posh wife Victoria and also the likes of Rod Stewart and Michael Jackson.

It is untrue that only elite class can buy property in Dubai. In fact there are locals of the emirates who are increasingly buying property instead of paying exorbitant rent to the landlords. Due to the rise in real estate inves◘tment there has been a major increase in the number of real estate agents and dealers who are having a flourishing business.

In Dubai the mortgage market is still in its nascent stages, but there are other schemes of payments available that aid property buyers in Dubai. The city is pulsating with the kind of energy that its real estate market is hav♀ing. If you invest in the real estate market you are guaranteed to emerge as a winner. You may either choose to sell your property or rent it, no matter what you choose high returns areΘ on the card. You can also buy a holiday home in Dubai for there is no other place in the world where you can get the kind of luxury that Dubai offers.

The rent in Dubai is steadily increasing, but this shouldn’t be taken as the norm, as very little of the property has actually been developed others are still in their development stage. While Dubai is witnessing a construction boom, the boom is skewed, █it pays more attention towards the development of villas and luxury resorts leaving out the home for poorer section and the labor class.

Another problem that is common is the bad traffic conditions that prevail here. But hopefully with the development of monorail much of the pain will be eased.

Thursday, June 18, 2009

ETA Star organises an interactive forum for the owners and residents of Palladium

ETA Star Properties recently organized an Annual General Body Meeting for the residents of Palladium, located in Jumeirah Lake Towers. The unique forum provided the residents of Palladium a platform to interact with the senior management of ETA Star and share and discuss their issues. The meeting was attended by residents, home owners of Palladium and senior officials from ETA Star Properties.

The Palladium were the first property to be delivered in the waterfront community.

Speaking on the occasion, Mr Mohammed Ali, General Manager, ETA Star Properties, said, "As a developer our responsibility does not end by just constructing the building. We wish to have an ongoing relationship with our customers and residents at our properties. It is our endeavour to ensure that residents at our properties have a comfortable living."

He further added, "At our end, our endeavor is to maintain a transparent relationship with our customers and we are glad that we took the first step by conducting the Annual General Body Meeting for the residents of the Palladium."

The forum decided to constitute a committee comprising of residents of Palladium to look in to the facilities management affairs of the property. The meeting unanimously approved the annual budget for maintenance for the property.

The Palladium, located at the heart of the Jumeirah Lake Towers, is a distinctive lifestyle project designed to provide charm and sophistication. The property is an ultra modern high-rise apartment complex, 34-storey high and spans over half a million square feet of built-up area.

Dubai Property | Dubai Real Estate

MARKET COMMENT: Dubai Shrs Drop; Rally Loses Steam

DUBAI (Zawya Dow Jones)--The Dubai Financial Market's benchmark gauge closed sharply lower Thursday amid increasing signs a rally that had picked up momentum in recent weeks is losing steam.

Buying late in the day helped the market pare intraday losses, but it still closed the session 3.1% lower at 2014.09 as investors matched prices with current economic realities facing the emirate.

"This correction was always on the cards after the market added about 39% since early May to close at a seven-month high on Sunday," a Dubai-based trader pointed out.

The global stocks rally is now cooling and though oil is holding steady around $70 a barrel views are mixed about its current strength, the trader noted.

The Dubai market has lost more than 8.4% in the last four sessions and is expected to trade lower next week after breaking through some key support levels and a bunch of bad corporate news taking the shine of bellwether stocks.

"The music failed to restart and a market trend that was resembling musical chairs has now turned into snakes and ladders with the bottom of the snake looking like 1900 on the DFM," said Matthew Wakeman of EFG Hermes.

Dubai's woes this week were aggravated by real estate giant Emaar Properties PJSC's (EMAAR.DFM) stock price crashing amid confusion over its deal with Kingdom Holding Co. (4280.SA) to develop projects in Saudi Arabia.

Emaar's shares closed Thursday -4.8% at AED3.60, losing about 14% since Sunday, and investors are unlikely to be in a hurry to buy back in amid continued uncertainty over the health of Dubai real estate market.

"I would not be surprised to see a rotation of cash towards the Saudi market in the coming few sessions where the broader range of stocks offer more defensive plays than our markets here which are heavily weighted towards construction and real estate," EFG's Wakeman added.

To be sure, Dubai wasn't the only market to suffer.

Most Gulf markets closed in the red Thursday as investors booked recent gains. Doha's benchmark gauge lost 2.6% to take its week's total losses to about 10%.

"Looks like the 'summer drift' has set in and investors are now perhaps looking to be more patient/selective with their risk appetite," noted Ali Khan, director at Arqaam Capital.

Tellingly, institutional investors were net sellers on the Dubai market this week, according to data provided by the bourse.

By Nikhil Lohade
Source: ZAWYA DOW JONES

Wednesday, June 3, 2009

Dubai real estate on road to recovery

Despite industry issues, market expected to see first signs of growth within 6 – 12 months say experts at Cityscape Connect forum.

Although cash and confidence issues still prevail, Dubai’s property market will witness the first green shoots of recovery sometime between the end of 2009 and the second quarter of 2010, according to a panel of industry experts speaking here today (Tuesday 2 June) at the third ‘not for profit’ Cityscape Connect business breakfast,

Attended by more than 100 property executives, legal advisors and investors, the industry forums were initiated to stimulate networking, transparency and open debate on the key issues affecting the Dubai real estate industry which although experiencing a dramatic reversal of fortunes, is now showing signs that the market is stabilising and prices are beginning to bottom-out.

Elaine Jones, CEO of Dubai-based real estate agency Asteco echoed the sentiment of the panel: “It’s about cash & confidence. For example, we need to reduce interest rates, relax lending criteria and address the residency visa issue. This will at least start to bring back much needed confidence to the market and begin to stimulate growth.”

Indeed investor confidence was debated at length, examining numerous issues such as defaults, incomplete projects, late payments and fraud. “Trust is strained,” stated Sunil Gomes, of Guru Real Estate. “Credibility is king, if we lose that we have nothing. Projects must be completed and investors better protected.”

Steven Henderson, Partner in legal firm Clifford Chance, agreed that trust was paramount but added that the law had previously been struggling to keep up with the rapid growth of the market and that an over regulated market might have an adverse effect and stifle growth.

“Dubai has introduced Escrow accounts and the Strata law, but a federal law for real estate would also help to restore confidence. Banks also have a role to play here especially when developers experience credit or cash flow problems” he said.

Difficulties in the banking sector have been widely reported, however, the panel agreed that although credit was available for exceptionally low risk customers, besides rates and approval ratings, the sector needed consistency.

“Historically, the region has practiced ‘relationship lending’ but now with the credit crunch, banks are more cautious and have raised their minimum lending criteria especially for real estate projects. They can no longer just use the project as security they often also require ring-fenced assets independent to the project as security.”

However despite industry issues the panel was optimistically cautious about the timescale for recovery. Asked when Dubai could expect a market recovery, the general consensus was sometime between the end of 2009 and the second quarter of 2010.

“This clearly shows that industry sentiment has moved into positive territory and it is equally important that Cityscape through the Connect series of events continues to provide a platform for open debate. As the largest real estate event brand of its kind in the world, it is crucial in these times of economic uncertainty that Cityscape remains a trusted brand, giving back to the industry that it supports,“ said Rohan Marwaha, Managing Director of the Cityscape

Moderated by Bob Hird, Senior Director and Head of Investments at CB Richard Ellis, other industry experts on the panel included, David Macadam, Director of Commercial Division at Better Homes and Shahram Shamsaee, SVP Shopping Malls, Majid Al Futtaim Company.

Cityscape Connect is an initiative of Cityscape, the real estate service brand that has achieved international recognition and success. Cityscape events are held in Dubai, Singapore, Abu Dhabi, New York, Mumbai, Moscow, Saudi Arabia and Latin America. Cityscape events attract key industry figures such as international investors, property developers, governmental and development authorities, leading architects, designers, consultants and senior professionals involved in the property industry. Furthermore Cityscape has also established Cityscape Intelligence, an online subscription based service for real estate professionals, Cityscape Datamonitor, a real estate research consultancy, and the Cityscape magazine.

Source: Albawaba

Dubai Real Estate | Dubai Property

Sunday, May 10, 2009

Rera and Arra sign deal for unified strategy

Dubai's Real Estate Regulatory Agency (Rera) and Ajman Real Estate Regulatory Agency (Arra) have signed a co-operation agreement to create a unified strategy to develop the property sector.

The agreement emphasises the need to create a unified strategy to develop, modernise and organise real estate-related activities including developers, real estate brokers and property management companies as well as the workforce of such companies.

The agreement, which underlines the importance of strengthening co-operation ties between the two organisations, was signed by Rera CEO Marwan bin Ghalita and Arra Director-General Omar Al Barguthi in the presence of Sultan bin Butti, General-Manager of Land Department.

Bin Ghalita said the agreement as a major step forward in the real estate sector. It will focus on in establishing a unified vision in developing, updating and regulating all real estate activities, companies and people who work in brokerage offices, and real estate management.

"In addition we will prepare necessary criteria and conditions to own broker identity and real estate management identity. The agreement will regulate the work of brokers and real estate advertising between the two emirates along with laws and regulations in Dubai and Ajman by establishing a unified database with all information and data relevant to the brokerage business, real estate management or real estate development," bin Ghalita added.

Al Barguthi said the agreement corroborates the iron-clad relationship between Arra and Rera.

Source: Business24/7

Dubai Property Rentals | Dubai Property for Sale

Tuesday, April 28, 2009

New visa law in Dubai to be implemented for property buyers in 2009

Visa associated to property buyers in Dubai would in all likelihood get legal sanction within this year, according to a source. This would be a big boon for Dubai real estate which is at present reeling under the impact of financial crisis. Vagueness pertaining to this matter had aroused a lot of doubts among potential real estate investors and with legal backing the cloud of confusion enveloping the property sector might lift.

According to a source, law will explain who deserves a visa in terms of their investment in the real estate. Previously, most real estate advertisements boasted of 99-year visa for purchase of freehold property.

The government of Dubai had opened up the property sector to foreign national in 2002. Since then Dubai property sector never looked back.

Buy Dubai Property | Dubai Real Estate

Sunday, April 26, 2009

Are there any buyers for real estate in Dubai?

Are there still investors buying property in Dubai? After the modification established by Dubai government regarding freehold ownership by foreigners of properties in Dubai, the market in the city has legitimately gone crazy with global businessmen lining to invest thousands of millions of dollars in the market. Unexpectedly the business world turned interested in Dubai Real estate properties Market. Therefore the cost of properties in Dubai have become threefold in years and still rising but now it has gone down since due to the global financial crisis.

Saturday, April 25, 2009

Real estate hit by political uncertainty

By Moonis Ahmed
Dailytimes

KARACHI: As uncertainty continues on the political front in the country, the builders and developers are finding it hard to attract investment, industry sources told Daily Times.

They said that the most of the builders and developers who came back from Dubai and others Gulf states recently have started to launch projects which they left incomplete and are offering attractive packages to lure investors.

“Despite the forecasts that the economy is on the road to recovery, the real estate business is still facing hard times in the country,” they added.

Babar Mirza Chughtai, Chairman, Association of Builders and Developers said that property business has lost steam and has failed to attract fresh investment. During some last months many projects have been launched but the builders attributed it primarily as a part of the strategy to avoid encroachment on empty plots by the land mafia.

The builders, who had introduced new projects, were forced by the situation in the city to start some activity on such plots like opening offices, developing the land or posting some security guards at the site in order to secure the land.

About falling steel and cement prices he said that are these not the main issues that could brighten hope among the investors. Actually, investors of real estate are looking forward for a pleasant business environment to invest.

These two items hold 50 to 60 percent share in the overall construction cost of any apartment project or a house.

He said that government housing schemes in last 25 years like LDA, Awami Ghar and others failed to provide any relief. “Continuous political instability coupled with law and order situation are discouraging investors and public to take risk in the real estate business,” Muhammad Asim, director sales and marketing at World Link Real Estate said.

He was of the view that builders are trying to recover their lost confidence from the people by launching new projects and they are offering attractive packages.

Many people, who are trying to own a home after fall in property prices are finding it hard to make some saving as rising cost of living caused by high food inflation and utility bills are eating up their entire hard earned income, an expert said. It is pertinent to mention that the country, at present, is facing a shortfall of 6 million housing units. A leading cement maker and exporter said that sale of cement has declined by 15 to 20 percent in the last one-and-a-half-month as economic conditions have hit the construction activities. However, all the realtors were of the view that the prices of property would further drop in case the political situation remains unstable.

Dubai Real Estate
| Dubai Property

Thursday, April 16, 2009

U.A.E. Recession i Architecture

In contempo years, architects descended aloft Dubai, acquisitive to capitalize on its feverish architectonics boom. But while the Persian Gulf city's sprawling skyline is still dotted with cranes, the bazaar actuality has fizzled.

As of aboriginal February, more than half of Dubai real estate projects were stopped or canceled, from the 3,281-foot-tall Nakheel Tower advised by Woods Bagot to the Hydropolis, a 220-suite underwater auberge envisioned by artist Joachim Hauser. Analysts say that Dubai Property values, in total, will abatement up to 60 percent in 2009 afterwards years of almanac growth. Given this desperate about-face of events, architects are getting afflicted to amend their affairs in the region.

"Everyone is demography a absolute wait-and-see approach," says Wayde Tardif, an American artist who in 2007 co-founded POSIT Studio in Dubai. Tardif charcoal optimistic, acquainted that the arrest will adapt the bazaar and acquiesce architects to bolt their breath. He predicts a backlash in 16 to 18 months; he doesn't apprehend a alone city-limits abounding of alone towers. "Dubai has too abundant pride for that," he says.

In the accomplished decade, Dubai, amid in the United Arab Emirates (UAE), has boarded on ever-grander projects at alarming acceleration in hopes of acceptable a above apple metropolis. Today, its abridgement relies on tourism, absolute estate, and banking services; oil revenues accord beneath than 10 percent to its GDP.

Initially some anticipation the arid boomtown could brim the all-around banking crisis. By October, however, adopted investors were vanishing, bounded lenders were retrenching, and oil prices were demography a dive. In contempo months, The National, a UAE bi-weekly for expatriates, has been brindled with letters of accumulation layoffs. "There are abounding instances of adviser firms abbreviation agents by added than 50 percent, or closing their Dubai appointment altogether," says Scott Hyndman, a development administrator at a Dubai-based acreage company. Some belief affirmation that hundreds, if not thousands, of cars sit alone at the Dubai airport, apparently larboard there by foreigners beat the country.

While captivation acceptance in Dubai, abounding architectonics firms are alive their focus 70 afar to the southwest, to oil-rich Abu Dhabi. The basic of the UAE, Abu Dhabi has acquired gradually over the decades and generally is admired as a added livable—and added stable— burghal center. "Where Dubai has been a abstract market, I anticipate Abu Dhabi is a abundant added serious, play-by-the-rules market," addendum Steven Miller, FAIA, managing administrator of FXFOWLE's Dubai office. His close is actively advancing plan in Abu Dhabi, area above developments such as Saadiyat Island—a $27 billion multi-use activity with barrio by Jean Nouvel, Zaha Hadid, and Frank Gehry—are reportedly still on schedule.

Guy Source, a UAE-based application recruiter for the architectonics industry, agrees that Abu Dhabi seems beneath afflicted by the banking crisis than Dubai. He adds that added Middle Eastern markets authority affiance as well, acquainted that there are jobs cat-and-mouse to be abounding in Qatar, Kuwait, and Saudia Arabia.
 
Dubai Real Estate Property