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georgihh
New Member
Yes, I am afraid to say the broker is a bit too late and all his stories sound like jokes.
Good luck to him, but the believers don’t exist anymore.
- Status
Good luck to him, but the believers don’t exist anymore.
W
Wannaberich
New Member
No Kidding.In the middle of the worlds worst economic crisis since World War Two,
and during the hottest period of the year you found Dubai bleak.
Now theres a surprise.
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Brendan R
New Member
well, it's the first time for me that Dubai is so hot end of May. Tmeperatures last week were more in line with July/August readings than end of May. That's still fine if you're by the sea.
Sure Dubai will feel better during the coming October-April season. You can expect every possible effort from the authorities starting september to kickstart confidence in the place again. Nonetheless, with the pool of potential suckers dwindling, these efforts may not yield the expected results. Expect a lot of buzz, enthusiasm and self-injected confidence.
A fool and is money are easily parted. But when fools are no more, what do you do?
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Sole Dubai
New Member
Open minded and an Optimist
Facts.. not jokes or assumptions! As for self promotion my website does that for me this is only a medium to voice my opinion and share my experience within the market which has taken a huge over haul and is still looking to hang in there despite all the negative international media. I think they have done well to with stand the abuse and slander which has been harsh considering Europe, UK, US and Australia which is the only nation not going through recession are going through the same thing if not worse!
Bad news sells and Dubai has been like some celebrities that have been built up by the media and then shot down again. However this Emirate won't take it laying down and it's Ruler remains adamant to succeed. I hope they do make it as I never wish to see anyone or a nation fail! This market has had to adpot and change in a short space of time were as the more established markets had hundreds of years of evolution, trial and error to reach their current status.
I am not only a broker as was kindly pointed out by the educated georgihh, I am also open minded, an optimist and in support of those who make their own luck and not sit back in wait for the elements to control their destiny.
As for my qoutes I will never cease
Sole Dubai - Failure is not necessarily missing the target, but aiming too low.
Unfortunately as unbelievable as it may sound to you, people are actually conducting real estate transactions and the figures are rising. Prices have crept up since April which is a surprise considering! In some instances sellers are opting to lease their units for an average 8% to 10% return based on when they secured their investment. In some instances they are getting rental yields in excess of 25% per annum. The sellers who would rather hang on to their investments are financial secure and are happy to retain their units until such a time favorable offers are being made!
Facts.. not jokes or assumptions! As for self promotion my website does that for me this is only a medium to voice my opinion and share my experience within the market which has taken a huge over haul and is still looking to hang in there despite all the negative international media. I think they have done well to with stand the abuse and slander which has been harsh considering Europe, UK, US and Australia which is the only nation not going through recession are going through the same thing if not worse!
Bad news sells and Dubai has been like some celebrities that have been built up by the media and then shot down again. However this Emirate won't take it laying down and it's Ruler remains adamant to succeed. I hope they do make it as I never wish to see anyone or a nation fail! This market has had to adpot and change in a short space of time were as the more established markets had hundreds of years of evolution, trial and error to reach their current status.
I am not only a broker as was kindly pointed out by the educated georgihh, I am also open minded, an optimist and in support of those who make their own luck and not sit back in wait for the elements to control their destiny.
As for my qoutes I will never cease
Sole Dubai - Failure is not necessarily missing the target, but aiming too low.
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georgihh
New Member
Good luck to you my friend, but my advice is - don’t push too much as it is not the right timing.
If you can hold on for three more years you could see some progress.
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dalvir bains
New Member
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paul66
New Member
Brendan R - your choice of words definately has a negative doom and gloom feel to it. It seems like you either missed the boom boat or youve got your fingers burnt.
I live in Dubai (Oct-May) and London (Jun-Sep). Im not sure where you stayed or who you know, but I can assure you that the 'buzz' is still very much there in Dubai. Good restaurants are always packed and sometimes difficult getting a reservation! Consumer confidence is about the same as it is in London, New York or Singapore!
Please remember it is NOT just Dubai who is affected by the WORLDWIDE crisis.
When economy is back on track, emerging countries will be the first to recover...FAST.
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Brendan R
New Member
it's not doom and gloom, it's back to reality. I don't believe in fads, fashion, hype, buzz and everything that goes with it.
As I mentioned in my previous posts, I've been been going to Dubai for a long time, know a lot of people there mostly in finance, and never invested or got my fingers burnt in Dubai. One could say therefore I missed the boat but I don't see it that way. To me, real estate investing has never been for speculation. Dubai never met my investment criteria from a point of view of regulation, culture, visa requirements, quality fo construction, investor protection,....
I choose my investments carefully based on expected return, volatility and liquidity.
Investing in real estate in Dubai never met my required investment criteria. I knew from the start it was an unsustainable bubble based on Ponzi scheme type finance. When such a bubble deflates, there is no way to predict where it will stop. And you cannot run for the exits as real estate is very illiquid.
Regarding the buzz you mention, I tell you it's not true. Restaurants are empty and it is very easy to get reservations anywhere you go. During my stay, I in fact tried a few places such as Momo's in the Emirates, Rostang and Ronda Locatelli (Locanda Locatelli is kind of my canteen in London). I just walked in without a booking. The restaurants were empty.
I was amazed to see hotels running at very low occupancy rate during mid-term break. Very few children in the kids club of the Jumeirah group hotels. I stayed at the Al-qasr and had access to the various kids clubs.
So no buzz at all.
If you want to play a worldwide recovery (which is still a long way despite all the hype in the media trying to persuade people there are green shoots everywhere),there are better investments than going long Dubai real estate, especially given the fact that many projects have been postponed and Dubai is still very much running extremely high debt and budget deficits.
If you want to play a worldwide recovery, just buy commodities.
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paul66
New Member
Brendan... Let me guess, you are a trader or an investment analyst like me.
Do you just trade commodities?
The reason why restaurants etc. must have been empty is because you visited Dubai off-peak in the scorching heat. Try going between October and April you will notice the airports all jam-packed, traffic on the roads, malls, restaurants all full and a nice real buzz on the streets and beaches when the sun goes down! Now this IS life!! (and then I have to go back to grey London again!!! arghhh! and hear about more stabbings in London, Gordon Brown getting kicked up the backside by the 'cant be bothered to find out the real facts' British media (i.e. Telegraph, The Sun and the Guardian).
Going back to the Airport... Did you know that Dubai Airport is the 4th busiest airport in the World for International passengers?... and this is without Dubailand.
regards,
Paul
Do you just trade commodities?
The reason why restaurants etc. must have been empty is because you visited Dubai off-peak in the scorching heat. Try going between October and April you will notice the airports all jam-packed, traffic on the roads, malls, restaurants all full and a nice real buzz on the streets and beaches when the sun goes down! Now this IS life!! (and then I have to go back to grey London again!!! arghhh! and hear about more stabbings in London, Gordon Brown getting kicked up the backside by the 'cant be bothered to find out the real facts' British media (i.e. Telegraph, The Sun and the Guardian).
Going back to the Airport... Did you know that Dubai Airport is the 4th busiest airport in the World for International passengers?... and this is without Dubailand.
regards,
Paul
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PropGuy
New Member
He did not say they were empty, he said they were not full.
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Sole Dubai
New Member
Banks unfreeze mortgages as sentiment improves
Almost three quarters of a year after real estate prices started their southbound journey banks are restarting mortgage lending.
HSBC is bullish on the sector's prospects, and has hiked its loan-to value (LTV) ratios to 75 per cent on its flexi-loan and Eibor-based mortgage products, as well as on its Amanah Home Finance.
"HSBC is primarily targeting end-users who have recently faced acute difficulties getting affordable mortgage finance," said Abdulfattah Sharaf, CEO of Personal Financial Services, HSBC Middle East and North Africa. "The relaxed LTVs will provide flexibility and choice to customers looking to own a home," he said.
Emirates Business has learnt that the bank will review and adjust its rates on July 1.
Dubai Bank maintains that it never stopped providing mortgages. "Dubai Bank never stopped providing its Mulki Property Finance. At this time, we provide property finance for all UAE residents and UAE nationals [for] all major developers," said Mohammed Amiri, Head of Retail, Dubai Bank.
Analysts believe that the recent rally of the local stock markets is bound to rub off on the property sector. "There is a tangible improvement in market sentiment and most people feel that prices are bottoming out," said Ryan Mahoney, Managing Director, Better Homes.
"Dubai has shown positive signs in recent weeks, with a rally on the Dubai Financial Market, which has seen property major Emaar rise remarkably," said James Gauduchon, Manager – Corporate Mark-eting, Better Homes.
"With liquidity in the market – which is keeping prices of completed homes high even now – it is possible that the market has started heading upwards again," said Dubai Bank's Amiri. "However, this period of inertia in the off-plan market could continue for longer than usual," he added.
Mahoney pointed out that it would take more time for the increased liquidity to translate into an increase in the number of transactions or to directly affect property prices. "Although there has been a lot of talk about a general increase in the availability of financing for homebuyers, we have not seen the effects so far," he said.
"On an average, a loan cycle is about eight weeks. So considering that banks have recently relaxed their mortgage criteria, we expect to see some positive results by mid-summer," Gauduchon said.
Property prices in some parts of Dubai have stabilised, with areas such as The Springs development, witnessing a rise of up to 20 per cent. "Some two-bed villas are selling for between Dh1.1 million and Dh1.2m, as opposed to the Dh1m that they were fetching weeks ago," he said.
Sole Dubai - Never underestimate the power of words. they can elevate the spirit...
HSBC is bullish on the sector's prospects, and has hiked its loan-to value (LTV) ratios to 75 per cent on its flexi-loan and Eibor-based mortgage products, as well as on its Amanah Home Finance.
"HSBC is primarily targeting end-users who have recently faced acute difficulties getting affordable mortgage finance," said Abdulfattah Sharaf, CEO of Personal Financial Services, HSBC Middle East and North Africa. "The relaxed LTVs will provide flexibility and choice to customers looking to own a home," he said.
Emirates Business has learnt that the bank will review and adjust its rates on July 1.
Dubai Bank maintains that it never stopped providing mortgages. "Dubai Bank never stopped providing its Mulki Property Finance. At this time, we provide property finance for all UAE residents and UAE nationals [for] all major developers," said Mohammed Amiri, Head of Retail, Dubai Bank.
Analysts believe that the recent rally of the local stock markets is bound to rub off on the property sector. "There is a tangible improvement in market sentiment and most people feel that prices are bottoming out," said Ryan Mahoney, Managing Director, Better Homes.
"Dubai has shown positive signs in recent weeks, with a rally on the Dubai Financial Market, which has seen property major Emaar rise remarkably," said James Gauduchon, Manager – Corporate Mark-eting, Better Homes.
"With liquidity in the market – which is keeping prices of completed homes high even now – it is possible that the market has started heading upwards again," said Dubai Bank's Amiri. "However, this period of inertia in the off-plan market could continue for longer than usual," he added.
Mahoney pointed out that it would take more time for the increased liquidity to translate into an increase in the number of transactions or to directly affect property prices. "Although there has been a lot of talk about a general increase in the availability of financing for homebuyers, we have not seen the effects so far," he said.
"On an average, a loan cycle is about eight weeks. So considering that banks have recently relaxed their mortgage criteria, we expect to see some positive results by mid-summer," Gauduchon said.
Property prices in some parts of Dubai have stabilised, with areas such as The Springs development, witnessing a rise of up to 20 per cent. "Some two-bed villas are selling for between Dh1.1 million and Dh1.2m, as opposed to the Dh1m that they were fetching weeks ago," he said.
Sole Dubai - Never underestimate the power of words. they can elevate the spirit...
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Sole Dubai
New Member
British-based investors fear losses in UAE
British investors with millions of pounds in a property scheme run by Sulaiman al-Fahim, the soon-to-be owner of Portsmouth Football Club, fear that their investments are at risk.
Since 2007, investors have handed over nearly £60 million to Hydra Village, a venture of Dr al-Fahim’s Hydra Properties. There has been no significant construction on the site in Abu Dhabi, in the United Arab Emirates (UAE).
British companies operating in the region — hit hard by the global slowdown — face similar problems and claim to be owed up to £50 million by UAE-based clients.
Dale Kavanagh, 33, from Leeds, who works for a valve company in the oil and gas industry, paid Hydra 40,000 dirhams (about £6,000) in 2007 as a deposit on a 1.45 million dirham villa. He has yet to receive a contract for the villa and now has written off the money as a loss.
After calling the company for months, he met Dr al-Fahim. Mr Kavanagh said: “There’s nothing happening at the site. They’ve built a few villas near the front so it looks like something is being done, but there don’t appear to be any utilities connected.”
Hydra Properties was unavailable for comment. Talks between investors and the developer’s senior executives are continuing. Dr al-Fahim has said publicly that Hydra is “resilient and solid”. When the bid for Portsmouth was announced, he said: “Let me be very clear in saying that my involvement in Portsmouth has nothing to do with Hydra.”
A Dubai-based executive at one UK construction group told The Times: “It’s all very sensitive but we’re having trouble getting people to fulfill their contracts. There’s a lot of renegotiation on deals.”
For those whose clients become insolvent or refuse to pay them, there may be little redress. Crispin Rapinet, managing partner at Lovells, the law firm, said: “This is uncharted territory. There are insolvency regulations but they’re untested.”
Last month, an industry body said that almost £400 million was owed to British consultants and engineers in unpaid fees from work in the UAE.
Sole Dubai - Wisdom and good judgement live together, for wisdom knows where to discover knowledge and understanding...
Since 2007, investors have handed over nearly £60 million to Hydra Village, a venture of Dr al-Fahim’s Hydra Properties. There has been no significant construction on the site in Abu Dhabi, in the United Arab Emirates (UAE).
British companies operating in the region — hit hard by the global slowdown — face similar problems and claim to be owed up to £50 million by UAE-based clients.
Dale Kavanagh, 33, from Leeds, who works for a valve company in the oil and gas industry, paid Hydra 40,000 dirhams (about £6,000) in 2007 as a deposit on a 1.45 million dirham villa. He has yet to receive a contract for the villa and now has written off the money as a loss.
After calling the company for months, he met Dr al-Fahim. Mr Kavanagh said: “There’s nothing happening at the site. They’ve built a few villas near the front so it looks like something is being done, but there don’t appear to be any utilities connected.”
Hydra Properties was unavailable for comment. Talks between investors and the developer’s senior executives are continuing. Dr al-Fahim has said publicly that Hydra is “resilient and solid”. When the bid for Portsmouth was announced, he said: “Let me be very clear in saying that my involvement in Portsmouth has nothing to do with Hydra.”
A Dubai-based executive at one UK construction group told The Times: “It’s all very sensitive but we’re having trouble getting people to fulfill their contracts. There’s a lot of renegotiation on deals.”
For those whose clients become insolvent or refuse to pay them, there may be little redress. Crispin Rapinet, managing partner at Lovells, the law firm, said: “This is uncharted territory. There are insolvency regulations but they’re untested.”
Last month, an industry body said that almost £400 million was owed to British consultants and engineers in unpaid fees from work in the UAE.
Sole Dubai - Wisdom and good judgement live together, for wisdom knows where to discover knowledge and understanding...
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ssazain12
New Member
still bottom not reached...
UAE property market bottoming out -HSBC
UAE property prices have another 15-20 percent to fall before bottoming out at the end of this year and are moving toward stability, Deutsche Bank said in a report released on Thursday.
Deutsche’s study follows other reports saying the real estate market has already bottomed out.
"While we noticed some signs of stabilisation recently, we remain cautious given the limited number of transactions and the continuing declining trend in rents," Deutsche Bank said.
"We identify risks of further weakness driven by the exodus of expatriates and new supply flowing into the market.”
The global financial crisis has taken its toll on the UAE's once-booming property sector. In Dubai - the biggest sufferer - property prices in some parts of the city have fallen more than 50 percent since their peaks in 2008.
Deutsche said the slump had wiped off an estimated 50 percent off Dubai prices since Aug 2008. Abu Dhabi prices have fallen 30 percent.
One of the biggest challenges facing regional developers in coming months will be access to financing and rising defaults by homeowners, Deutsche said in its report.
"Developers under coverage would have to collect about 38 billion dirhams ($10.3 billion) from customers' installments in the next couple of years, which we see as challenging."
Tamweel and Amlak, Islamic mortgage lenders which account for about 60 percent of the UAE's outstanding mortgage loans, need a cash injection of 18.7 billion dirhams to meet their commitments, an unsourced report in newspaper Emirates Business said this week.
Tamweel rejected the report.
HSBC said that prices in Abu Dhabi and Dubai rose 4 percent in April and 5 percent in May. In the apartment segment, which accounts for 85 percent of all transactions, prices rose 9 percent in May.
Standard Chartered said this week "the first signs of stabilisation in Dubai's real estate sector have appeared, taking observers by surprise since further declines were expected. Some caution is warranted as there are still question marks surrounding population flows in the coming months."
UAE property market bottoming out -HSBC
UAE property prices have another 15-20 percent to fall before bottoming out at the end of this year and are moving toward stability, Deutsche Bank said in a report released on Thursday.
Deutsche’s study follows other reports saying the real estate market has already bottomed out.
"While we noticed some signs of stabilisation recently, we remain cautious given the limited number of transactions and the continuing declining trend in rents," Deutsche Bank said.
"We identify risks of further weakness driven by the exodus of expatriates and new supply flowing into the market.”
The global financial crisis has taken its toll on the UAE's once-booming property sector. In Dubai - the biggest sufferer - property prices in some parts of the city have fallen more than 50 percent since their peaks in 2008.
Deutsche said the slump had wiped off an estimated 50 percent off Dubai prices since Aug 2008. Abu Dhabi prices have fallen 30 percent.
One of the biggest challenges facing regional developers in coming months will be access to financing and rising defaults by homeowners, Deutsche said in its report.
"Developers under coverage would have to collect about 38 billion dirhams ($10.3 billion) from customers' installments in the next couple of years, which we see as challenging."
Tamweel and Amlak, Islamic mortgage lenders which account for about 60 percent of the UAE's outstanding mortgage loans, need a cash injection of 18.7 billion dirhams to meet their commitments, an unsourced report in newspaper Emirates Business said this week.
Tamweel rejected the report.
HSBC said that prices in Abu Dhabi and Dubai rose 4 percent in April and 5 percent in May. In the apartment segment, which accounts for 85 percent of all transactions, prices rose 9 percent in May.
Standard Chartered said this week "the first signs of stabilisation in Dubai's real estate sector have appeared, taking observers by surprise since further declines were expected. Some caution is warranted as there are still question marks surrounding population flows in the coming months."
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judithscott
New Member
The market as a buyer, still good to buy business and commercial space, residential is too expensive ands saturated as I believe.
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Sole Dubai
New Member
House prices to fall another 20% in 2009
Dubai house prices will fall another 20 per cent this year, as the emirate continues to suffer a sharp downturn, a Reuters poll showed.
Residential real estate prices in Dubai – home to man-made islands in the shape of palm trees and the world's tallest building – have a less than 20 per cent chance of picking up before 2011, according to the median forecast of ten analysts at banks, investment firms and research institutions.
Three of 10 forecasters said they expected prices to hit a bottom in the second half of 2009 and three predicted it would happen in the first half of 2010. One forecaster said prices would rise by 10 per cent from now in 2010.
Five analysts expected prices to fall a further 20 per cent or more this year and prices could fall an additional 15 per cent next year before stabilising in 2011, the poll showed.
"We may see a further drop in prices as the magnitude of the problem in the sector is still high and the recovery of the sector may take some more time," said Sajeer Babu, an equity analyst at National Bank of Abu Dhabi, which participated in the June 2 to June 9 poll.
Property prices in the seaside emirate have slumped since late last year following the global financial crisis and a drop in oil prices.
More than half of the construction projects in the UAE worth $582 billion (Dh2.13 trillion),have been put on hold, Dubai-based market research firm Proleads said in February.
Rents in Dubai are seen declining by 40 per cent for the full year 2009 and a further 10 per cent in 2010 before recovering in 2011, the poll showed.
While it indicated that house prices for 2009 will fall an average of 50 per cent from a peak in the third quarter, it is likely that prices for off plan properties, or properties still under construction, will fall in excess of that.
DELAYED RECOVERY
Liquidity problems, job losses and additional supply to the market are expected to delay the recovery in Dubai's property sector.
"We believe a recovery is likely in late 2010 or early 2011, with this based on a series of factors which include a decline in demand for buying property," said Sana Kapadia, Vice President, equity research at EFG-Hermes in Dubai.
"Our house view is that lower or potentially negative population growth is likely to put a strain on demand," she said, adding more clarity regarding the legal framework for property ownership and greater confidence were also needed.
Dubai's population is set to fall 17 per cent this year, the bank said in a report in March.
In a previous Reuters poll in March, Shuaa Capital said it expected 80,000 units of supply for the next two years.
Dubai property prices had soared sharply after the emirate opened its real estate sector to foreign investors in 2002, granting them freehold ownership rights at many developments.
From the beginning of 2007 to mid-2008, property prices jumped almost 80 percent, according to Morgan Stanley estimates.
As buying properties became more expensive, Dubai's mainly expatriate population opted to rent instead, causing prices to spiral upwards.
Three of the analysts said rents in Dubai could fall as much as 50 per cent during 2009.
Meanwhile, Abu Dhabi, the UAE capital and home to most of the country's oil, has fared better during the global economic downturn.
House prices there are expected to fall 25 per cent on average for the full year, with two out of eight analysts saying prices would slump as much as 45 per cent.
Prices would remain flat in 2010 and pick up in 2011, the poll showed.
Residential real estate prices in Dubai – home to man-made islands in the shape of palm trees and the world's tallest building – have a less than 20 per cent chance of picking up before 2011, according to the median forecast of ten analysts at banks, investment firms and research institutions.
Three of 10 forecasters said they expected prices to hit a bottom in the second half of 2009 and three predicted it would happen in the first half of 2010. One forecaster said prices would rise by 10 per cent from now in 2010.
Five analysts expected prices to fall a further 20 per cent or more this year and prices could fall an additional 15 per cent next year before stabilising in 2011, the poll showed.
"We may see a further drop in prices as the magnitude of the problem in the sector is still high and the recovery of the sector may take some more time," said Sajeer Babu, an equity analyst at National Bank of Abu Dhabi, which participated in the June 2 to June 9 poll.
Property prices in the seaside emirate have slumped since late last year following the global financial crisis and a drop in oil prices.
More than half of the construction projects in the UAE worth $582 billion (Dh2.13 trillion),have been put on hold, Dubai-based market research firm Proleads said in February.
Rents in Dubai are seen declining by 40 per cent for the full year 2009 and a further 10 per cent in 2010 before recovering in 2011, the poll showed.
While it indicated that house prices for 2009 will fall an average of 50 per cent from a peak in the third quarter, it is likely that prices for off plan properties, or properties still under construction, will fall in excess of that.
DELAYED RECOVERY
Liquidity problems, job losses and additional supply to the market are expected to delay the recovery in Dubai's property sector.
"We believe a recovery is likely in late 2010 or early 2011, with this based on a series of factors which include a decline in demand for buying property," said Sana Kapadia, Vice President, equity research at EFG-Hermes in Dubai.
"Our house view is that lower or potentially negative population growth is likely to put a strain on demand," she said, adding more clarity regarding the legal framework for property ownership and greater confidence were also needed.
Dubai's population is set to fall 17 per cent this year, the bank said in a report in March.
In a previous Reuters poll in March, Shuaa Capital said it expected 80,000 units of supply for the next two years.
Dubai property prices had soared sharply after the emirate opened its real estate sector to foreign investors in 2002, granting them freehold ownership rights at many developments.
From the beginning of 2007 to mid-2008, property prices jumped almost 80 percent, according to Morgan Stanley estimates.
As buying properties became more expensive, Dubai's mainly expatriate population opted to rent instead, causing prices to spiral upwards.
Three of the analysts said rents in Dubai could fall as much as 50 per cent during 2009.
Meanwhile, Abu Dhabi, the UAE capital and home to most of the country's oil, has fared better during the global economic downturn.
House prices there are expected to fall 25 per cent on average for the full year, with two out of eight analysts saying prices would slump as much as 45 per cent.
Prices would remain flat in 2010 and pick up in 2011, the poll showed.
P
paul66
New Member
UAE economy to start recovering from July 2009
UAE economy to start recovering next month on government support
By Zaher Bitar, Staff Reporter, Gulf News
Published: June 16, 2009, 23:44
Dubai: The UAE economy will start to rebound next month in a gradual recovery that could stretch into next year, a top government official said on Tuesday.
"The government's intervention and support in terms of monetary and economic policy will ensure a smooth recovery that will boost investment," Hamad Bu Amim, director-general of the Dubai Chamber of Commerce and Industry, told delegates at a seminar.
He believes that the government's liquidity injection is a step forward that will help the economy to recover by 2010.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, recently ordered a cut in government fees by 20 to 30 per cent.
Bu Amim said the Dubai Chamber strived to provide the business community with adequate market information to help overcome the current slowdown. This includes advisory services to help companies manage their businesses better.
Fahd Shah, an economic researcher at the Dubai Chamber, quoted from a survey and said business leaders were looking for policies and actions to make business conditions more favourable.
According to the survey these actions should address financial constraints and provide access to government services. These moves will also promote market efficiency and transparency, he added.
Ehsan Khoman, another researcher at Dubai Chamber, said inflation was set to fall this year, allowing authorities to focus entirely on stimulating economic activity and freeing credit markets.
Khoman said the fall in the country's output would only be limited. "The UAE's exposure to sub-prime toxic assets has been minimal relative to Europe and the United States," he said.
"Moreover, monetary policy response has been timely and impressive in scale with the UAE Central Bank cutting the repo rate to one per cent in January."
Gulfnews: UAE economy to start recovering next month on government support
UAE economy to start recovering next month on government support
By Zaher Bitar, Staff Reporter, Gulf News
Published: June 16, 2009, 23:44
Dubai: The UAE economy will start to rebound next month in a gradual recovery that could stretch into next year, a top government official said on Tuesday.
"The government's intervention and support in terms of monetary and economic policy will ensure a smooth recovery that will boost investment," Hamad Bu Amim, director-general of the Dubai Chamber of Commerce and Industry, told delegates at a seminar.
He believes that the government's liquidity injection is a step forward that will help the economy to recover by 2010.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, recently ordered a cut in government fees by 20 to 30 per cent.
Bu Amim said the Dubai Chamber strived to provide the business community with adequate market information to help overcome the current slowdown. This includes advisory services to help companies manage their businesses better.
Fahd Shah, an economic researcher at the Dubai Chamber, quoted from a survey and said business leaders were looking for policies and actions to make business conditions more favourable.
According to the survey these actions should address financial constraints and provide access to government services. These moves will also promote market efficiency and transparency, he added.
Ehsan Khoman, another researcher at Dubai Chamber, said inflation was set to fall this year, allowing authorities to focus entirely on stimulating economic activity and freeing credit markets.
Khoman said the fall in the country's output would only be limited. "The UAE's exposure to sub-prime toxic assets has been minimal relative to Europe and the United States," he said.
"Moreover, monetary policy response has been timely and impressive in scale with the UAE Central Bank cutting the repo rate to one per cent in January."
Gulfnews: UAE economy to start recovering next month on government support
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Sole Dubai
New Member
Plan to scrap mandatory business sponsorship
Establishing a new company in Dubai may no longer require a mandatory UAE sponsor if the government approves a recommendation to this effect, which is currently under study, said a top Dubai Chamber official.
Hamad Buamim, Director-General of Dubai Chamber, said the proposal has been with the Executive Council for the past three months. If approved, the new policy may be announced with the revised Company Law this year.
"This is in line with what the business community is expecting," he told Emirates Business. "It would support the business community in attracting more investment. The government is looking into this issue along with the Company Law that is under revision and is expected to be out in 2009."
The Dubai Chamber has also recommended to the Executive Council to change ownership laws, which will pave the way for 100 per cent ownership of businesses outside the free zones.
The privilege is only on a case-by-case basis and would prioritise businesses that are strategic to the economy, according to Khalid Al Kassim, Deputy Director-General of Economic and Sector Development at the Dubai Department of Economic Development.
Dubai Chamber officials feel it is possible to do away with the sponsorship system even at a national level. Dr Belaid Rettab, Senior Executive Director of the Dubai Chamber, said the proposal to "ban" the sponsorship system is possible and feasible for the entire economy, not just Dubai.
"UAE's private sector would like to see an end to the sponsorship system and free entry allowed for all companies without any barriers," he said. "This is possible, and it is expected the government will review this issue."
The chamber has also recommended that the government needs to issue monetary policies to enable banks to provide easier access to funds at lower service charges and interest rates.
"We are already seeing some tangible results, such as the call for the financial sector to ease financing of the business community. The business community has said that finding financing was very difficult in February and March, but now it's easier," Buamim said.
In the real estate sector, the chamber recommended that existing limitations on foreign ownership of properties be removed.
"Rera is doing its best to manage the market but it is has not yet reached the levels where we would like to see it managed," Rettab said. "There are still a lot of unknowns about the visas connected to real estate. Things have to be clarified."
Hamad Buamim, Director-General of Dubai Chamber, said the proposal has been with the Executive Council for the past three months. If approved, the new policy may be announced with the revised Company Law this year.
"This is in line with what the business community is expecting," he told Emirates Business. "It would support the business community in attracting more investment. The government is looking into this issue along with the Company Law that is under revision and is expected to be out in 2009."
The Dubai Chamber has also recommended to the Executive Council to change ownership laws, which will pave the way for 100 per cent ownership of businesses outside the free zones.
The privilege is only on a case-by-case basis and would prioritise businesses that are strategic to the economy, according to Khalid Al Kassim, Deputy Director-General of Economic and Sector Development at the Dubai Department of Economic Development.
Dubai Chamber officials feel it is possible to do away with the sponsorship system even at a national level. Dr Belaid Rettab, Senior Executive Director of the Dubai Chamber, said the proposal to "ban" the sponsorship system is possible and feasible for the entire economy, not just Dubai.
"UAE's private sector would like to see an end to the sponsorship system and free entry allowed for all companies without any barriers," he said. "This is possible, and it is expected the government will review this issue."
The chamber has also recommended that the government needs to issue monetary policies to enable banks to provide easier access to funds at lower service charges and interest rates.
"We are already seeing some tangible results, such as the call for the financial sector to ease financing of the business community. The business community has said that finding financing was very difficult in February and March, but now it's easier," Buamim said.
In the real estate sector, the chamber recommended that existing limitations on foreign ownership of properties be removed.
"Rera is doing its best to manage the market but it is has not yet reached the levels where we would like to see it managed," Rettab said. "There are still a lot of unknowns about the visas connected to real estate. Things have to be clarified."
S
Sole Dubai
New Member
When will Dubai property market reach the bottom?
Even analysts from global finance houses disagree on what the coming quarters hold for Dubai's beleaguered real estate sector.
A report recently released by HSBC bank said that property prices in the emirate had risen by 4% in April and 5% in May.
'Market data from April and May show a range of positive indicators: Agreed property sale prices are rising, volumes are holding up well, and banks have loosened their lending criteria,' said the report. '[But]We will not be able to discern a sustainable trend until later in 2009.'
Analysts from Deutsche Bank and UBS are more pessimistic on the sector's outlook. Citing the number of new units that are expected to hit the market, and the question mark over the predicted population fall, both banks are expecting further falls in prices.
'We expect UAE property prices to decline another 15% to 20% from current levels, and only expect a bottom by year-end', stated Deutsche.
UBS issued an even more negative prognosis, estimating a further 40% price fall by Q4 2010, when a glut of new units would push vacancy rates in the city from an estimated 15% currently, to over 33%.
Rise in transactions
Real estate firms in the city, however, have been quick to pounce on the uplift in transactions and the slowdown in depreciation as a turn in the market.
'I'm not sure whether 'bottoming out' is the right phrase, but you can certainly say that stabilization is coming in,' Charles Neil, CFO at Landmark Properties told AME Info.
'There was a very rapid fall in prices for both rentals and sales, some of it, I think, spurred by panic over November, December and January. What we have noticed over the last few months is that the difference between the listing prices and the transactional prices has narrowed. It's a sign that sellers are actually not prepared to go lower, they'd rather withdraw their properties from the market.'
Sector analysts have noted a similar trend in the market. '[After falls of up to 40%] The first signs of stabilization in Dubai's real estate sector have appeared, taking observers by surprise since further declines were expected. Some caution is warranted, as there are still question marks surrounding population flows in the coming months,' Standard Chartered said in a sector report.
Neil puts the upsurge in transactions down to a number of deals available to cash buyers - and the beginning of a slow return to liquidity, with local banks returning to lending, although under stricter criteria.
'The two biggest providers, Tamweel and Amlak, who had 60% of the market are not back in at all, and we don't know when they will be. Commercial banks are starting to come in, and they are obviously looking to grab market share, and some are being quite aggressive. Lending is now safer for them because prices have come down, and assuming that they aren't going to fall much lower, they've got a good cushion now.'
Market 'still seeking bottom'
But not all market watchers agree with the view that the market is turning. 'I don't agree that the market has bottomed out, unfortunately I think that we still have a while to go,' Heather Wipperman-Amiji, CEO of real estate advisory firm Investment Boutique, told AME Info. Current estimates point to 45,000 new units expected to come onto the market in 2009/2010.
'If you could turn off the tap in terms of new supply coming online, and look strictly at transactional activity and asking prices, then maybe you could call it - but the reality is that you can't, and the new supply is going to have a considerable impact on pricing.
'For sellers and buyers, there's also been a desire to see a deal done before the summer and Ramadan, because they can see a real slow down in the market. So I think that has helped with the pick up in activity. At the end of the day everyone would like to see a bit more activity, but they [real estate groups] are looking at symptoms rather than causes. I don't see how it's possible that we've seen the bottom given the amount of supply that's going to come online and the predicted population decline over the summer and what that knock-on effect will be for businesses again.'
Return to stability
This ties in with UBS estimates that up to a third of properties in the city will be lying empty by the end of 2010, as more projects reach completion.
'I'm hopeful that by Q3 2010 you may start to see more stability in the market,' says Wipperman-Amiji. 'Right now, developers with projects that have 20% to 30% to go on their build are desperate to complete because they want that final payment. But those who are less than 50% in are slowing down or putting things on hold while they see what happens in the market.'
Neil agrees with the long range forecast: 'I don't see prices moving very quickly in 2010, but they will start to increase in 2011. In the majority of markets prices come back to where they left off from, so that could be between five and seven years in our view.'
A report recently released by HSBC bank said that property prices in the emirate had risen by 4% in April and 5% in May.
'Market data from April and May show a range of positive indicators: Agreed property sale prices are rising, volumes are holding up well, and banks have loosened their lending criteria,' said the report. '[But]We will not be able to discern a sustainable trend until later in 2009.'
Analysts from Deutsche Bank and UBS are more pessimistic on the sector's outlook. Citing the number of new units that are expected to hit the market, and the question mark over the predicted population fall, both banks are expecting further falls in prices.
'We expect UAE property prices to decline another 15% to 20% from current levels, and only expect a bottom by year-end', stated Deutsche.
UBS issued an even more negative prognosis, estimating a further 40% price fall by Q4 2010, when a glut of new units would push vacancy rates in the city from an estimated 15% currently, to over 33%.
Rise in transactions
Real estate firms in the city, however, have been quick to pounce on the uplift in transactions and the slowdown in depreciation as a turn in the market.
'I'm not sure whether 'bottoming out' is the right phrase, but you can certainly say that stabilization is coming in,' Charles Neil, CFO at Landmark Properties told AME Info.
'There was a very rapid fall in prices for both rentals and sales, some of it, I think, spurred by panic over November, December and January. What we have noticed over the last few months is that the difference between the listing prices and the transactional prices has narrowed. It's a sign that sellers are actually not prepared to go lower, they'd rather withdraw their properties from the market.'
Sector analysts have noted a similar trend in the market. '[After falls of up to 40%] The first signs of stabilization in Dubai's real estate sector have appeared, taking observers by surprise since further declines were expected. Some caution is warranted, as there are still question marks surrounding population flows in the coming months,' Standard Chartered said in a sector report.
Neil puts the upsurge in transactions down to a number of deals available to cash buyers - and the beginning of a slow return to liquidity, with local banks returning to lending, although under stricter criteria.
'The two biggest providers, Tamweel and Amlak, who had 60% of the market are not back in at all, and we don't know when they will be. Commercial banks are starting to come in, and they are obviously looking to grab market share, and some are being quite aggressive. Lending is now safer for them because prices have come down, and assuming that they aren't going to fall much lower, they've got a good cushion now.'
Market 'still seeking bottom'
But not all market watchers agree with the view that the market is turning. 'I don't agree that the market has bottomed out, unfortunately I think that we still have a while to go,' Heather Wipperman-Amiji, CEO of real estate advisory firm Investment Boutique, told AME Info. Current estimates point to 45,000 new units expected to come onto the market in 2009/2010.
'If you could turn off the tap in terms of new supply coming online, and look strictly at transactional activity and asking prices, then maybe you could call it - but the reality is that you can't, and the new supply is going to have a considerable impact on pricing.
'For sellers and buyers, there's also been a desire to see a deal done before the summer and Ramadan, because they can see a real slow down in the market. So I think that has helped with the pick up in activity. At the end of the day everyone would like to see a bit more activity, but they [real estate groups] are looking at symptoms rather than causes. I don't see how it's possible that we've seen the bottom given the amount of supply that's going to come online and the predicted population decline over the summer and what that knock-on effect will be for businesses again.'
Return to stability
This ties in with UBS estimates that up to a third of properties in the city will be lying empty by the end of 2010, as more projects reach completion.
'I'm hopeful that by Q3 2010 you may start to see more stability in the market,' says Wipperman-Amiji. 'Right now, developers with projects that have 20% to 30% to go on their build are desperate to complete because they want that final payment. But those who are less than 50% in are slowing down or putting things on hold while they see what happens in the market.'
Neil agrees with the long range forecast: 'I don't see prices moving very quickly in 2010, but they will start to increase in 2011. In the majority of markets prices come back to where they left off from, so that could be between five and seven years in our view.'
C
cascades
New Member
Hey Sole,
Is it really that bad paying taxes in your country.
I grew up in a country where one did not have freedom post tax.
Is it really that bad paying taxes in your country.
I grew up in a country where one did not have freedom post tax.
S
Sole Dubai
New Member
I honestly thought this was about property markets.. Dubai, Brazil, Russia, UK.. world markets! My influences as to why I reside in the UAE, should not have to be scrutinized! I will gladly discuss the issues concerning my current markets which are Brazil, Panama, Portugal, Spain, UAE and UK. Dubai being my main focus I have investments in the other markets so follow them closely as well.
One good thing about freedom, is the freedom to choose where you wish to settle dispite economic, social and financial influences.
My aim is to focus on service, not success..! I hope you understand
One good thing about freedom, is the freedom to choose where you wish to settle dispite economic, social and financial influences.
My aim is to focus on service, not success..! I hope you understand
- Status
