Nakheel, part of the state-owned Dubai World Group, paid $680 million, including a $300 million placement at $5.20 a unit in January, for a 12 per cent stake in Mirvac and has since bought another 3 per cent in the company for less than $70 million. Dubai’s Emaar Properties, the region’s largest developer, Sorouh Real Estate and Aldar Properties have seen their share prices plunge in recent months. Some developers are casting around for alternative sources of funding, including launching real estate investment trusts (REITs).
Property consultants Colliers International said prominent Dubai developers such an Emaar and Nakheel have sought to offset the risks of investor default by raising minimum repayment amounts.
Colliers said the Dubai property market would slow over the next two years as credit tightened and supply increased. Investment bank EGF Hermes said the total value of real estate projects in Dubai over the next decade was estimated at more than $US230 billion, while the total value of transactions last year was registered at $US125 billion.
Colliers said that, as the linchpin of the Middle East real estate market, there were concerns that a downturn in Dubai could affect other regional markets. Whatever happens in coming months, sources told The Australian that the Government would not let the property market, which makes up 20-25 per cent of Dubai’s economy, collapse.
theaustralian.news.com.au
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Project funds drying up in Dubai
Dubai property market on edge amid global slowdown
”I saw fear take over,” said Timur Usmanov, a real estate agent for Dubai-based Monshaat Properties, about investors who recently tried to flee the market just two or three years after diving in. “There are too many sellers and not enough buyers. …
“People are saying it’s like a tsunami that will attack the country in a few months,” said one broker, who sells property for a major Dubai developer and spoke only on condition her name not be used because she did not want to hurt her business.
Morgan Stanley angered some developers in August with a prediction that Dubai property prices would likely fall by 10 percent after years of unrelenting growth, starting in 2009.
Richard Rodriguez, the former CEO of the Dubai division of Emaar Properties, the builder of the world’s tallest building and one of Dubai’s biggest developers, said too many builders in the emirate have focused on return-seeking investors — rather than people looking for homes to live in.
Now it’s teechange for those who want to live golf
He works closely with Norman, who has designed three of the four courses at Leisurecorp’s flagship development in Dubai, called Jumeirah Golf Estates.
The estates will be the world’s largest urban golf development when complete, covering 2750 acres (1113ha) in the heart of Dubai, and be home to more than 35,000 people.
In Australia, he oversaw many developments and was a director of Troon Golf, the joint venture with Macquarie Bank. He set up Troon Golf offices in Dubai in 2001 and joined Leisurecorp, Dubai World’s own golf division, in 2006.
No doubt, the Dubai World Championship, the world’s richest golf tournament, to be held at Jumeirah Golf Estates annually from November next year, will help attract attention.
Real estate chiefs dismiss ‘correction’ reports
Dubai-based real estate chiefs have dismissed claims that the region’s property markets are about to suffer a downturn in fortunes.
Al Rahma heads one of the region’s largest property sales companies, with offices in the UAE, Oman, Kuwait and Jordan.
The company is also expanding to Saudi Arabia, UK, Morocco and India and has sold properties in landmark projects such as Burj Dubai, Dubai Waterfront and Infinity Tower.
Al Rahma’s comments come at the same time that Al Mazaya Holding expressed its satisfaction at the performance of real estate and investment activities in the Gulf area in general, and in the UAE in particular.
The company stated on Sunday that Dubai’s property market will always be an investment destination, due to the numerous factors that enable the market so appealing, in spite of the existing international crisis.
He added: “It is important to remember that annual real estate profits in the UAE range between 8 to 14%, as compared to 4% in other markets, meaning that this market will continue to attract investments for many years to come.”
Towers and ambitions
The buildings will be some of the most amazing the world has ever seen – but will investors be able to carry on marvelling?
When British banker Phil Sheridan decided to take the plunge and set up as an estate agent in Dubai back in 2003, his friends and former colleagues thought he’d had a touch too much sun.
As Sheridan, now group chief executive of High Society Properties, recalls: “People actually asked me if I was mad. They really didn’t think that the real estate market here was going to take off.
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“Moving” building set for Dubai
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A skyscraper that rotates will offer occupants a 360 degree view and a constantly changing skyline. The building is equipped with wind turbines on each floor, so it generates its own electricity. |
