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.
Showing posts with label Property News. Show all posts
Showing posts with label Property News. Show all posts
Monday, December 7, 2009
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:
Source: dubaibeat.com
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
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
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
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
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
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
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
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
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
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