L'immobilier à Dubai - Articles de la Presse Anglaise
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English News - Dubai Real Estate Market
- 6 Tips to beat a recession...
- Chamber discusses realty issues with developers
- Most disputes involve payment defaults
- 10 Interesting Points About Dubai Real Estate
- Dubai Developers & Agents feeling it now...
- Dubai launches online registration of properties
- Dubai tightens rules for property buyers
- Dubai banks suspend lending to real estate employees
- Emaar reviewing jobs...
- Crisis to "SPLIT MEN FROM BOYS" in real estate
- Damac CEO's Notebook
- Revised rent cap policy sought...
- Beating the recession....
- Developers offer buyers easy payment options
- Heat over in Dubai?
- Sharjah freehold law awaiting Ruler's approval
- More Russians expected to invest in UAE
- RERA plans realty brokers' body
- Short Term Investment VS. Long Term Investment!
- October 2008 - Cityscape sets new records!
- DUBAI STILL UPBEAT...
- UAE realty market ‘based on strong fundamentals’
- Dubai in worlds top 10...
6 Tips to beat a recession...
• Cut your spending. Make this a priority. Weigh up whether you really need that new flat-screen TV, and maybe going on a plush overseas holiday can wait one more year. Making sacrifices this year and living on a tighter budget will leave you much better off in the long run.
• Reduce your debts. Pay a lump sum on your credit card, and reduce any loan repayments. Make sure that you are paying the lowest rate possible on any borrowing you have.
• Slash your bills. Make sure you are on the cheapest deals for your gas and electricity. If you have a mobile phone or broadband see if there are cheaper options available. Chances are, if you have been on the same deal for more than two years then you can cut your bill.
• Put money away for a rainy day and make sure you have a cushion of cash savings. There are some good rates around at the moment, particularly on Isas.
• Normally, when a recession strikes, interest rates are cut. This can be good news for homeowners as it means the price of tracker mortgages will fall.
There are some good tracker rate mortgages available, but don't take the risk if you cannot afford to. Taking a fix may mean you miss out on a possible rate cut, but it does give you the peace of mind of knowing what you will pay each month.
If your budget really gets tight then there are some drastic options available for reducing your monthly repayments. You could move some of your loan to interest only for a short time. Or increase your mortgage term from 25 years, to 30 or 40. Don't skip mortgage repayments.
• Don't change jobs. Companies make cutbacks when their profits get hit and staff are usually the first to be axed from the balance sheet. New employees can often be first in the firing line.
November 2008 - Back to Title
Chamber discusses realty issues with developers
A meeting was held in the Abu Dhabi Chamber of Commerce and Industry (ADCCI) between the ADCCI officials and managers of several property development firms to discuss difficulties that the companies face during the construction of several projects in Abu Dhabi.
Salah Salim bin Omair Al Shamsi, Chairman of the Federation of the UAE Chamber of Commerce and Industry and Chairman of the ADCCI, said the holding of the meeting comes in the framework of a series of meetings held by the ADCCI with the representatives of firms in all commercial, economic and service sectors.
The meetings aim to define problems that the companies face and draw up solutions to be referred to the concerned bodies.
He said the meeting with the property development companies, which play an important role in Abu Dhabi's economic growth, aim to support and activate the real estate sector and listen to the problems and difficulties that the property developers face to accelerate the implementation of projects and meet the shortage in the number of required residential units in Abu Dhabi.
The real estate finance issue and other relevant issues were discussed during the meeting.
November 2008 - Back to Title
Most disputes involve payment defaults
Disputes involving payment defaults resulting from construction delays form the largest category of cases registered so far with Dubai's new Property Court.
Seventy-one cases have been registered with the court, which began to deliver judgments earlier this month. All the cases so far have been filed by buyers but officials expect developers will start to launch legal actions too.
The number of cases before the court exceeds 500, as hundreds have been pas-sed to it by the Real Estate Regulatory Agency (Rera).
"The court started considering cases this month and has so far passed judgment on four cases," Chief Judge Mohammed Yousuf Sulaiman, Deputy Director of Dubai Courts and Cassation Court's Senior Judge.
"Two have gone in favour of the defendant and two against," he added.
Judge Abdul Qadir Moosa, Chief of the Court of First Instance (Properties Court), said: "We can only proceed with cases if the parties involved come to the court and register their contact details. Many people are aware their cases are pending but have yet to come to us. We will go ahead once they do.
"The court is currently seeking the advice of real estate experts holding high positions in the government and members of the Ruler's Court to assist the judges in the decision-making process while passing judgment on cases. The experts who are brought in will have to be approved by Dubai Courts and will have to swear that they will pass on any advice in an unbiased and fair manner."
The time between the registration of a case and the judgment will on average be 52 days, say officials.
Chief Judge Sulaiman added: "The process is that after registration we notify the parties involved about the case and ask them to register their contact details with us. Then they have a consultation with our team members and we arrive at a decision. The 52-day timeframe is a record compared with the length of time taken in courts abroad. Dubai Courts arrive at decisions much more quickly than other courts in the region.
"The time is needed because we have to follow the procedures set out by the law but once the decision is made then passing judgment does not take long."
The court has not so far recruited any extra judges but will do so depending on the number of cases that are registered. Officials are also considering publishing a property guide that will include details of Dubai's freehold regulations.
November 2008 - Back to Title
10 Interesting Points About Dubai Real Estate
There are many questions currently being asked about the Dubai property market and as real estate professionals it is our job to know some interesting points.....
1. Dubai mortgage rates are around 8.5 per cent and have yet to adjust to the recent US rate cuts, which they have to do because of the dollar peg to the dirham. Just a couple of years ago local mortgage rates of seven per cent were available. Therefore the downward pressure on the cost of home finance is clear, and if the local mortgage market follows Hong Kong and becomes more competitive, then interest rates could go much lower, making it significantly cheaper to buy than rent. Real interest rates are already negative due to high local inflation.
2. Rental yields in the Dubai market of 7-10 per cent are abnormally high by international standards. Rents are unlikely to fall in a booming market, so it is more likely that rising capital values will gradually pressure yields down towards global levels. There is no reason why rental yields should be higher in a booming city like Dubai than in a city where the economic outlook is poorer.
3. The hype about Dubai development projects has admittedly duped even this skeptical correspondent over the years. The fact is that far less supply is coming on stream than promised by overenthusiastic developers, due partly to limited supplies of manpower and materials. Dubai Properties is one of the biggest and has just said it will deliver 5,000 units to the freehold market in 2008 which is not nearly enough to meet surging demand.
4. Dubai house prices are still low in absolute terms in comparison to other global cities with similar salary levels. The HSBC survey of house prices in comparison to per capita GDP put Dubai and Abu Dhabi near the bottom. This is a historic anomaly that will be eliminated by price rises.
5. Six years ago, when Dubai freehold began, it was a market without any formal legislation and regulatory infrastructure. Now it has world-class laws, a state-of-the-art land registry and a strongly-led regulatory authority. Hope has been replaced by experience.
6. The Dubai Financial Market crashed in 2006 pushing local investors into property as an alternative. It recovered in late 2007, but is now again trending downwards with global stocks, and has become highly volatile, shifting over 10 per cent in a day. Expect stock market participants to again seek a more stable alternative.
7. Indeed, the absence of investment alternatives is a major theme for 2008. Global stock markets have had their worst January in history. Recent US interest rate cuts leave deposits paying 2.8 per cent. This makes Dubai real estate look attractive as an alternative. What other place offers such a return?
8. In the same way that the local stock market crash attracted foreign bargain hunters to invest last year, foreign investors in search of yield are also increasingly investing in Dubai real estate. Problems in the UK housing market might be dissuading some buyers, but large numbers of oil-rich Russians, for example, are now buying in Dubai.
9. Dubai still has some undeveloped market niches in real estate, such as holiday lets and fractional ownership, which are big and even dominant market phenomena in many beach resorts around the world. This source of higher rental yield on property has therefore yet to be fully tapped.
10. The Dubai Government has been the most proactive developer in the emirate, and its recent legislation and regulatory initiatives suggest that this support is not only likely to continue, but will respond appropriately to any adverse market developments
November 2008 - Back to Title
Dubai Developers & Agents feeling it now...
Dubai estate agents and developers have been living the high life for years, with the city's booming property market seemingly unable to put a foot wrong and investors begging for developers to accept their money for any project that made it past the drawing board stage.
The upheaval of the last few months, however, has brought about radical changes in their business models.
Damac, the group behind 51 projects in Dubai alone, has already begun overhauling its organisation. An industry insider puts the number of employees at risk from the cut backs at close to 180.
Damac Properties CEO Peter Riddoch said: 'The continuing global slowdown will inevitably lead companies to review their staffing levels and recruitment requirements. Damac Properties will continue to review its own position in line with the market and aim to ensure that it right sizes/maintains its staffing levels accordingly.'
The company would not elaborate further on which departments were likely to be most affected, although insiders note that sales staff across the industry are likely to be placed under renewed intensity.
Real estate agency Better Homes is also said to be feeling the effects of the slow down in property sales, with cutbacks possibly affecting up to 50% of some of its departments.
However, when addressing a conference at the Dubai International Financial Centre last week, Sultan bin Sulayem ruled out the possibility of a fall in house prices in the emirate.
'The demand-supply imbalance persists and I do not see any downward trend in prices, despite the fact that some investors may try to sell lower,' said Sulayem. 'There is an appetite in the market but the will is not there.'
Despite these assurances the supply and demand imbalance does not appear to be having the desired effect. Many of the city's new districts, such as Business Bay or the Palm Jumeirah, though completed are still only partially occupied. This could be seen as a legacy of purchases by speculators or short term investors, which recent legislation enacted by the authorities has begun to curb in favour of longer term buyers and end users.
There have already been changes in the city's property market. In a move that would have been unforeseeable even two months ago, one developer has already put units in one of its projects up for sale at up to a third of the prices which were originally mooted.
Ukraine-based VIP Waterfront, the company behind the Royal Bay development planned in Madinat Al Arab's Waterfront, has gone ahead with the launch of sales for the project - but has put in place a pre-emptive price cut to tempt in investors. At Dhs2,300 per square foot, properties are now reportedly going for up to a third less than the group had previously planned to launch at.
This is partially a reflection of the tightened access to credit, which had been fuelling many previous off plan sales, but is possibly also an indication that the new breed of investor in property in Dubai is the middle class that has so far been almost absent. The balance between speculators and end-user residents may have begun to change.
November 2008 - Back to Title
Dubai launches online registration of properties
Dubai Government has launched an online property registration scheme, Oqood, that analysts say, will lead to a higher level of transparency and eventually create an online property price index (PPI).
Dubai's Land Department in conjunction with the Real Estate Regulatory Authority (Rera), yesterday said, the new online application 'Oqood' will enable the effective implementation of Law No. 13 of 2008 for regulating the interim real estate register in Dubai, a statement said.
Mohammad Sultan Thani, assistant director-general for Excellence and Organisation Governance at the Dubai Land Department, said: "Interim registration is essential for the real estate market, and is considered a unique and pioneering step covering even off-plan sales transactions. The law protects the interest of all parties through closely monitoring sales transactions. The launch of the online application will significantly facilitate the entire process."
Benefits
The online registration process will lead to minimising conflicts arising between developers, investors and sellers, while contributing to cutting down the escalating off-plan selling and reselling costs, the statement said.
"This is an excellent step and comes at the right time. The move will provide utmost clarity and transparency in real estate market on data, which will eventually lead to a detailed PPI," Sudhir Kumar, managing director of Realtors' International, a property consultancy.
Charges will be the same as levied by the Dubai Land Department - one per cent of the total value paid by the seller and one per cent to be paid by the consumer.
Ahmad Al Qaizi, chief executive of Emirates Real Estate Solutions, said: "The launch of online application Oqood will help ensure the availability of detailed data on private proprietorship of all real estate that have been sold off-plan in Dubai. It will also protect customers' rights through safe-guarding the development against any manipulation. It will safeguard the interests of investors, developers and end-users, as well as for the government. The move also reflects lots of seriousness from the government in raising transparency. The database or PPI will help investors and end-users to determine price in a very transparent way."
More than 80,000 units have already been registered with Oqood so far.
November 2008 - Back to Title
Dubai tightens rules for property buyers
Dubai property buyers who breach contracts or default on payments will have to forfeit 30% of the sale price to the developer under new rules announced by the Dubai Land Department on Wednesday.
The developer may also delay any payment until the property is resold to another buyer. Developers can also keep 30% of any payment made in excess of the initial 30% instalment.
The new rules, effective immediately, apply only to new contracts.
November 2008 - Back to Title
Dubai banks suspend lending to real estate employees
A number of banks in Dubai have suspended lending to expatriate employees of leading real estate companies amidst fears of large-scale layoffs in the property market.
Emirates NBD, the region's largest lender, has suspended retail credit facilities to expatriate employees working with a few real estate firms due to possible restructuring.
The bank has suspended banking services to employees of a dozen companies such as Tamweel, Amlak, Damac and its subsidiaries, Daman Investments PSC, Emaar, Nakheel, Sama Dubai, Dubai Properties, Union Properties and KM Properties.
November 2008 - Back to Title
Emaar reviewing jobs...
Emaar Properties, the Gulf's largest property developer by market value, said today that it is reviewing its jobs policy in light of the global financial turmoil, Reuters has reported.
'It is now crucial that we use efficiency and maximize productivity, which includes revisiting our recruitment policies and optimising human resources,' Emaar said in a statement responding to a Reuters question on potential job cuts.
November 2008 - Back to Title
Crisis to "SPLIT MEN FROM BOYS" in real estate
The global financial crisis will "separate the men from the boys" in Dubai's booming real estate sector as tighter credit conditions delay mega projects and send speculators fleeing for the exits.
Signs that the crunch has hit the oil-rich Gulf Arab city, with its palm-tree shaped islands and glittering skyscrapers, are everywhere, from an Islamic lender's warning that the days of easy money are over to scaled back land reclamation projects.
"Let's face it, every Tom, Dick and Harry became a developer. Now is the time when you differentiate the men from the boys," said Mohammed Ali al-Hashimi, executive chairman of Zabeel Investments at the Reuters Middle East Investment Summit.
"At times like these, it doesn't matter if you're in real estate or whatever sector, it becomes Darwinian. The strong will survive, weak ones will fall. The good developers will become better."
Market commentators have cited speculation in recent weeks that two real estate firms -- Deyaar and Union Properties - will link up. Both firms have denied merger talks but were unable to say if the government was looking into ordering a tie-up amid tightening liquidity.
Meanwhile, projects are slowing as funding becomes harder to find and property prices begin to decline in a market that has boomed since 2002 when it was opened foreign investors.
State-owned Nakheel, developer of the palm islands off Dubai's coast, said recently it was slowing down on dredging work on its Palm Deira project, and other developers are likely to follow suit on large-scale projects.
The fall in global property prices is seeping into Dubai, which have fallen for the first time on the secondary market as speculators struggle to meet installment plans, while buyers are disappearing for lack of financing.
"The fact that prices are coming down elsewhere means that the relative pricing and the relative attractiveness of investing in Dubai and a few other places in the region has been eroded," said Ramin Takin, managing director of Essdar Capital, a Dubai-based financial advisory firm, whose clients include regional sovereign wealth funds.
"I think there may be a slight decline or growth stopping...but the particulars of that will depend on how the various investors, developers and government handle the supply-demand equation for the real estate."
Dubai house price growth slowed down to 16 percent in the second quarter, compared with 42 percent in the first quarter, real estate consultancy Colliers International said last month, and expects the market to slow over the next two years.
Even before the global financial woes began making the headlines, Morgan Stanley said in August that property prices would likely fall 10 percent by 2010 as supply of real estate units outpaces demand.
"If it goes through a gradual or soft landing, it is not a bad thing for the UAE, it is not a bad thing for the long term and for the economy," Mohammed Ali Yasin, head of Shuaa Securities brokerage, part of Shuaa Capital group, told the summit.
November 2008 - Back to Title
Damac CEO's Notebook
Dear DAMAC Partners,
There is no doubt that everyone around the world is starting to see the effects of the credit crunch – both individuals and companies.
Here in the Middle East we have been relatively fortunate to escape some of the more drastic consequences seen in other nations around the world but we must be realistic about what is happening and be aware of the implications that the global financial crisis has on us personally and as a business.
Here at DAMAC we are in a strong position but we need to focus and continue to deliver on our commitments to customers. We have a sound financial model and are continuing to make progress across all of our developments in the Middle East.
This year alone we have awarded contracts in excess of AED 2.5billion which I believe is a true sign of our financial strength – and also our confidence in the market place. This momentum will continue and by the end of this year we will have handed over a further 2,300 units to customers – all positive indications of our strong position within this market.
I do believe that the condition we are seeing will result in some of the smaller developers in the region consolidating, however this will help strengthen the market in the long run, differentiate the strong companies from the weak and as soon as the conditions improve, DAMAC will be well positioned for the future.
The last few months have been an exciting time for DAMAC. We launched the new brand identity for DAMAC Properties in August. At a time when many competitors offer luxury as a feature, in order to distinguish and sustain our competitive edge over others, we have introduced our new brand promise that focuses on the benefits of luxury, and at the same time fulfilling the wishes of our customers. Our aim is to turn our customers' wishes into reality and help facilitate their aspirations. We aspire to further strengthen this emotional relationship between the brand, its employees, its stakeholders and its customers.
For our agents and partners, DAMAC’s recent rebranding will translate into a new way of doing business. I look forward to your support in helping deliver on our new brand promise! In today’s competitive business world, where companies need to find ways to differentiate themselves from their competitors, industry recognition is a major distinguishing factor.
Earlier this year, DAMAC Properties won five awards at the CNBC Arabian Property Awards 2008. The awards ceremony was conducted at Madinat Jumeirah on 19th October. After winning two awards at the CNBC Arabian Property Awards last year, a total of five awards this year clearly reaffirm our commitment in providing world-class and unique properties coupled with excellent marketing and communication initiatives. We hope to achieve many more awards in the coming years.
I am also delighted to announce that the DAMAC Dubai team has now moved into the new offices at Executive Heights, which will also be DAMAC’s new headquarters. (With the exception of sales teams, who remain at various sales offices throughout the city). Executive Heights is located across the road from Dubai Media City and Dubai Internet City - adjacent to The Greens – and is one of the first office towers to be occupied in the area.
The move reflects the philosophical underpinnings of DAMAC as a whole. Executive Heights reflects DAMAC’s forward-thinking preparation for the dynamically changing world of business today.
Peter Riddoch
CEO DAMAC Properties
November 2008 - Back to Title
Panel to oversee realty projects
The Dubai Government has formed a high-level committee that will oversee and decide on the launch of future real estate projects in the emirate in view of the global economic slowdown, a top government official said yesterday.
The committee, which was formed in October this year, consists of Dubai-based master developers and a few private developers, siad Nasser Al Shaikh, Director-General of the Dubai Department of Finance.
"For the first time, a committee has been formed to oversee the real estate development in Dubai and help synchronise projects of various developers with the intention of securing future supply."
The panel will not be looking at projects that have already been launched, Al Shaikh said, adding, "no projects will be called off, and the committee will only decide on anything to be launched in future.
"Master developers control 70 per cent of the supply in Dubai's property market and if all these parties work together then we can strike a balance between the future demand and supply. However, we are not trying to influence or control supply in the market." He said the committee will not govern private developers and they can continue with their projects.
Perceptions that the UAE realty is set for a correction have strengthened recently. Prices are expected to peak in the first half of 2009, but a decline is expected in the second half of the next year. However, developers said analysts have failed to interpret and take note of the sound economic fundamentals of the emirate.
Al Shaikh reiterated that infrastructure projects will continue and only the yet-to-be launched real estate developments will be under scrutiny of the committee.
Ruling out government plans to inject any funds into the real estate sector, he said: "All the master developers have sufficient cash flow and they do not require funding from the government."
November 2008 - Bvack to Title
Revised rent cap policy sought...
Rent cap policies have to be diversified by price category in order to manage and maintain a defendable welfare distribution structure to manage an optimal economic growth, Dubai Chamber said yesterday.
"The recent crackdown on sharing of housing units has driven many low-income earners to other emirates where rents are more affordable, while others have resorted to more drastic measures as sending their families back home and getting much smaller and cheaper accommodations," the industry association said in an economic bulletin titled: "Who are being hit hardest by increasing rentals?"
"These movements have created vacancies, which are in demand by those wanting to move into more affordable housing units, given the rising prices of all consumer goods and services. Food prices, which had been relatively stable in the past, had been rising at unprecedented rates in the recent months, in response to the global food crisis, which has put enormous pressure on prices.
According to the bulletin, housing rentals surged in 2008 fuelled by continuing attractiveness of Dubai to foreign workers, and increasing prices of consumer goods and services. The chamber classified apartments in three categories in 2005 with Category I having an average price of lower than Dh50,000, Category II with an average price of Dh50,000 but less than Dh100,000 and Category III with an average price of Dh100,000 and higher.
During the third quarter, average prices of housing units in the categories I, II and III posted high year-on-year rates of increase of 20.5 per cent, 10.9 per cent and 12.3 per cent. Average rental price of units in Category I went up to almost Dh53,000, higher than the maximum value for the category in 2005. Likewise, the average price rose to Dh101,000 for units in Category II and average price of units in Category III rose to Dh175,000. The Category I units saw the highest rate of increase in the third quarter of 2008, pointing to greater pressure on affordable accommodation for lower-income households.
Partly explaining this is the exodus of low-income households to the neighbouring emirates where rents were relatively much lower, enabling landlords to increase rentals for new tenants at levels beyond the rent cap, the Chamber said.
In the third quarter of 2006, average price of units in Category I went up by 16 per cent, while those in Category II went up by 15.4 per cent. Increases in the prices of those in category III went up slower at 11.3 per cent. With rental levels already significantly much higher and with the implementation of cap on rent, increases in the 2007 had been much slower at corresponding year-on-year rates of 9.6 per cent, 8.3 per cent and five per cent in respective categories.
November 2008 - Back to Title
Beating the recession....
It is here. The recession that many hoped would never come, or prayed they would not have to deal with, has arrived. Others can carry on debating how and why it has happened. Business leaders will want to know what they need to do now.
The usual cycle of responses to a huge shock or upset - denial, anger, bargaining, depression and finally acceptance - is of limited use. Cut straight to acceptance, and then action. But what kind?
In downturns, it is extraordinary how quickly managers rediscover business virtues that appeared to have been forgotten in the good times. Today the cry is "preserve cash". Cut unnecessary entertaining. End business class travel and five-star accommodation. Get out of the taxi and back on the bus.
But few businesses shrink their way to success. So, even now, smart companies will be trying to plot a path back to profitability.
In a new paper for the Boston Consulting Group, David Rhodes, Daniel Stelter and Shubh Saumya argue that well-run companies can be ready to make big, recession-combating structural changes only four to six weeks after beginning their analysis of the situation.
Managers need to start by considering the worst-case scenarios. "Even for many still-healthy companies, a drop in sales of around 20 per cent is sufficient to turn profits into huge losses and to send cash flow deep into the red," they write.
Once the top team has grasped the possible severity of the situation, there are four priorities: "To protect the financial fundamentals, to identify ways to protect the existing business, to manage for the long term and optimise the relative valuation of the company."
Cash position
If you do not already have one, produce a weekly report on your cash position, BCG says. Consider your pricing points. In the 1930s, companies innovated around cheaper product ranges. The McDonald's $1 menu or Danone's Eco-Pack yoghurt in France are current examples of this. General Electric first developed its financing business in the Depression, helping customers buy refrigerators with credit.
For the long term, BCG echoes the advice offered by Intel's Andy Grove. Downturns are the best time to invest in research and development and product innovation, he used to say. Boldness will help create new products that are ready for the market when it starts to recover.
With asset prices so low, acquisitions should also be possible. "It's time to go shopping," Caroline Firstbrook, Accenture's European head of strategy consulting, said.
Getting some of these core challenges right - pricing, products and mergers and acquisitions (M&A) - is essential. But perhaps companies also need to grasp something more fundamental about the way the rules for business will change during and after this recession.
Umair Haque, director of the Havas Media Lab, a consultancy, recently wrote a provocative article for Business Week magazine which declared that "traditional recession strategies are doomed to fail this time". "What do we need in the 21st century - not just as brain-dead consumers, but as global citizens?" Haque continued. "We need opportunities to grow and amplify our capabilities."
That critique may sound a little too flaky to business leaders who want quick wins now, simply to survive. For more practical ideas consider Adrian Slywotzky and Richard Wise's sensibly titled book How to Grow When Markets Don't.
The authors have some simple suggestions that might just work. They ask a basic but important question: are all your customers really the same? On closer inspection you may have different customer segments lurking there that need to be served (and charged) differently. This offers the possibility of boosting revenues. Finally, there is you, the boss. What about your own personal recession-beating strategy? Times like these will place enormous pressure on business leaders. You will need to be at your fittest if your leadership is not to suffer.
Peter Shaw and Steve Wigzell, executive coaches at the Praesta consultancy, have written a guide for senior managers leading teams through tough trading conditions. "As a leader, be conscious that everything about you gives a message to your organisation. The perception of your mood will spread like wildfire and will often become distorted through gossip. When one CEO asked his chairman what was the single most important thing he should be doing, the reply was: 'Smile'."
Smiling will not be enough to steer your business through the next few months. And as the Praesta coaches point out, when you are visible to others keeping up a cheerful act is exhausting.
The businesses that do make it through to calmer, post-downturn times will have basic balance sheet strength. They will stem all unnecessary outflows of cash. They will price their goods and services keenly, but also imaginatively. And they will continue to plan for the future.
Simple, really. What is everyone getting so worried about?
First steps on the path back to profit
Preserve cash. Not all expenditure can be halted but tougher tests need to be put in place at once to prevent waste.
Reality check. How bad could things get, really? Plan for the worst, even while hoping for the best.
Differentiate. Tap into unexploited revenue streams by thinking afresh about your existing customer base. They are not all the same. New customer segments might offer new profit opportunities.
Innovate. Just working harder at what you are already doing probably won't produce a different outcome. Do something different. It has got to be worth a try.
Lead. This is no time to hide in the bunker. Be visible, upbeat, energetic. If you can't be, get out of the way and let someone else take over.
Don't give up. Take a pay cut. Freeze all new hires. Go to a three-day week. Grant unpaid holiday. There are many ways to keep the bankers from the door. Just keep the show on the road.
Something might turn up!
Octobre 2008 - Back to Title
Developers offer buyers easy payment options
Developers in Dubai have started to offer easy payment options to attract customers at a time when the global real estate sector is hit by an economic slowdown.
Emaar Properties yesterday announced two payment schemes – Plan to Own and Rent to Own – to attract buyers. The first plan offers the flexibility of paying 25 per cent of the property price after the handover and over five years, making it possible to bridge the current gap due to lower loan-to-value ratios offered by banks and financial institutions.
The latter allows the buyer to rent a property prior to buying, with the rent going towards the purchase of the property if they decide to buy within 10 months of moving in.
"The two programmes are aimed at further strengthening the property sector by facilitating easier purchases and making property more affordable for our customers. By providing customers the option of securing up to 25 per cent extended payment option, Emaar is stepping in to support our customers. These extended payment plans reflect on our commitment to them," said Issam Galadari, Chief Executive Officer, Emaar Properties.
Zaid Ghoul, Chief Financial Officer, Union Properties, said the company has also eased payment terms on its Index and Limestone House projects in Dubai International Financial Centre.
"We have eased the payment terms on some of the developments. For our Index and Limestone House developments for example, we are altering the payment terms as we do not expect someone to walk in with the full 65 per cent required before hand over in today's market conditions," he said.
"We are therefore planning to distribute this 65 per cent over two or three payments until hand over to ease some of the pressure on buyers, considering the slow down on mortgage lending from the banks."
The company has not reworked or altered any payment term for any of its other projects, Ghoul added. ETA Star Property Developers, part of ETA–Ascon Star Group, is ready to offer tailor-made payment plans to potential buyers as it gears to hand over close to 1,000 units in the next six months.
"We hold on to some units in our projects, which we generally sell on completion. However, this time around we are open on offering easy payment terms to buyers. We will sit across with them and work out a solutions that benefits both of us," Shyam Sunder, General Manager, Marketing, ETA Star said.
Three of ETA's project – 41-storey Liberty House Office and Apartments in Dubai International Financial Centre, 39-storey Goldcrest Executive and 39-storey Goldcrest Views 2 in Jumeirah Lake Towers – are nearing completion.
Octobre 2008 - Back to Title
Heat over in Dubai?
Reply Real estate agents and analysts in Dubai say demand remains strong for completed property in the emirate, but interest in off plan property appears to be drying up.
Some investors who had hoped to see double-digit or better annual returns are now looking simply to cut their losses on unfinished properties.
At the same time, banks are tightening the rules on who can get a loan, and for how much, which means many buyers no longer qualify for mortgages at 10% down.
Octobre 2008 - Back to Title
Sharjah freehold law awaiting Ruler's approval
The Sharjah Government has structured a new property freehold law that is awaiting approval by the emirate's ruler, informed sources said.
"It will be great news if Sharjah announces a freehold law. It will fuel growth in the property market, considering the fact that most people working in Dubai reside there," said a real estate analyst.
Sharjah was the first emirate to offer property on leasehold to GCC nationals, the analyst said.
Currently, the major developments in Sharjah are Al Nujoom Islands, being developed by Al Hanoo Holding Company, and Sharjah Investment Centre by Saudi-based property developer Snasco.
In 2006, Dubai passed Freehold Law No 7, which allows non-GCC nationals to own property within designated areas either in the form of freehold or a 99-year lease period. There are more than 30 designated freehold areas in Dubai that permit foreign ownership.
Octobre 2008 - Back to Title
More Russians expected to invest in UAE
Reply Cash-rich Russians are expected to invest more in the UAE real estate market, especially Dubai, given the attractive returns on investment, according to a property developer.
"About 26 per cent of investment in the UAE property market has come from Russians and we believe it will continue further," Steve Nosrat, Marketing Director, Azizi Investments, said. "By showcasing our projects in Moscow, we are ensuring that they are aware of our developments. Moreover, it also offers us a good networking opportunity."
Peter Riddoch, CEO, Damac Properties, said: "More than 120 nationalities have bought our properties and the number is still growing. This includes a significant Russian customer base. We are confident about the Russian market and we expect a considerable increase in interest levels with regard to our projects in the UAE and Dubai in particular."
More than 50 UAE-based developers will take part in the International Property Show Moscow 2008 from November 10 to 12.
"Russia's financial market and the economy as a whole have shown considerable resilience in spite of the global financial turmoil. This has been a major factor in driving investors to Russia, especially in the property sector," said Dawood Al Shezawi, Managing Director, Strategic Marketing & Exhibitions.
Octobre 2008 - Back to Title
RERA plans realty brokers' body
Reply Dubai's Real Estate Regulatory Agency (Rera) is working on a plan to create a brokers' association, which will frame a code of conduct for its members, said Rera CEO Marwan bin Ghalita.
The organisation will be established once all the real estate agents in Dubai have registered with Rera.
So far 5,154 estate agents, 1,806 brokerage firms and 842 developers have registered.
"Plans to create such an association are in the pipeline," said bin Ghalita. "We will form the entity once all the estate agents in the market have registered with RERA
Octobre 2008 - Back to Title
Short Term Investment VS. Long Term Investment!
Investors urged to deal with major developers
Property buyers in the UAE should purchase apartments from major developers if they want to benefit despite a slowdown in price appreciation, a senior official said.
"The major developers are standing on solid ground and this could provide much-needed comfort to end-users who have been putting their life savings into the UAE's properties," said M. Kaleem Khan, chief executive of NKR Properties.
As Dubai's red-hot property market cools down, a lot of fly-by-night operators are expected to disappear from the market, he said.
"There are lots of developers who do not have the right credentials, trying to attract buyers. Investors should do due diligence before putting their money in, so that they do not burn their fingers," he said.
"The days of making a quick buck are gone. In the coming days the real picture will become clear."
He said villas from renowned developers are still a good buy.
"Projects developed by major developers such as Emaar, Nakheel, Dubai Properties, Aldar, Sorouh and Hydra will continue to appreciate. So end-users have nothing to lose or worry, even if the market corrects itself," Khan said.
"Don't look for short-term gains. Look for long-term real value," he said.
Octobre 2008 - Back to Title
October 2008 - Cityscape sets new records!
Cityscape Dubai confirmed on Thursday its position as the world's biggest business-to-business real estate investment and development event with more than 70,000 visitors over four days.
With many regions facing uncertain futures, visitors from more than 150 countries flocked in record numbers to Cityscape Dubai to take the pulse of the changing regional real estate market.
By the second day of Cityscape Dubai on October 7, records had fallen with over 40,000 visitors more than the total for the three days of last year's event. In addition, by the end of the third day visitor numbers had surpassed 56,000.
"There was such exceptional public demand that we extended the opening hours of the event by one hour each day in order not to disappoint visitors," said Rohan Marwaha, Managing Director of Cityscape.
"It emphasis’s that while the world may change we at Cityscape remain intent on a strategy of showcasing emerging real estate market opportunities to an international audience wherever they may be."
"In addition, what makes Cityscape Dubai unique is that it is not a retail event where people come to buy individual properties. It is an investor-level, international business-to-business show. A key strength is the access Cityscape offers to some of the wealthiest and most liquid property investors in the world."
Octobre 2008 - Back to Title
DUBAI STILL UPBEAT...
Property developers in Dubai remain upbeat about the growth of the sector, which has seen prices rocket in recent years, despite warnings of overheating and the global financial turmoil.
With housing prices tumbling in the United States, Britain and other Western countries, real estate developers in the booming emirate rolled out multi-billion-dollar projects this week.
Several financial institutions have warned over the past few months that there will be a drop in property prices in Dubai after huge numbers of housing units currently under construction enter the market, exceeding demand.
And some analysts have argued that property prices in Dubai are inflated due to speculative investment.
Two of the companies that unveiled mega projects at the Cityscape exhibition are owned by the Dubai government, which appears to be sending a message of confidence to investors.
One of them is Nakheel, which is building three palm tree-shaped and The World islands. It announced a $38 billion (Dh140bn) plan to develop a desert area, including building a one-kilometre-high tower, which would overshadow the still unfinished Burj Dubai, already the tallest on Earth.
And Meraas Development launched a whopping $95bn development, Jumeirah Gardens, on Monday.
"There has been a steady growth in Dubai since 1999. We'll continue to go up in terms of ensuring that Dubai becomes a true international city," Meraas Development CEO Sina Al Kazim said after the launch.
"We are confident about achieving that model," he said pointing to the scale model of the project, which includes several towers expected to be no less than 600 metres high.
Kazim brushed aside claims that property will see a drop in prices, predicting that Dubai will continue to attract investment. "Dubai has strength in terms of its financial situation. There is an abundance of equity available, both locally and internationally, waiting for projects to go into," he said.
And Nakheel CEO Chris O'Donnell also dismissed forecasts of a price correction in Dubai property.
"If all you do is listen to people saying negative things, you will end up being negative yourself," he told reporters as the company displayed a huge scale model of Nakheel Harbour and Tower.
But Sana Kapadia, Equity Research Associate at EFG-Hermes, did not think that huge developments signal confidence. "There is less of an appetite to absorb new real estate projects since market sentiment has turned slightly negative especially in the wake of all that is happening around the globe," she said.
Kapadia maintained the view of EFG-Hermes "which suggests that 2009 will indeed be the peak year of supply", followed by decline. "This, coupled with the soft factors – some speculators exiting, liquidity transferring out of real estate and less exuberant sentiment – will facilitate a shift in market dynamics, with prices peaking in the first half of 2009, starting to decline in the second half and thereby declining 15-20 percent between that point and 2011," she said.
"The way the market ramped up during the first half of this year, facilitated by cheap credit and liquidity, provided fertile conditions for price appreciation," Kapadia said.
Abid Junaid, Executive Director of ETA Star, which is developing several residential and commercial projects, remained upbeat about the market as he launched a new venture in Dubai and another in Oman.
"We don't see any drop in demand. The summer and Ramadan in September were a quiet period, but those who did not buy then are coming back to the market now," he said.
Junaid said a price correction, if it happens, "will not be across the board", but affect "the uppermost end" of the market. Foreign investors will continue to come to Dubai, lured by opportunities that are not available in their home countries, he said.
Octobre 2008 - Back to Title
UAE realty market ‘based on strong fundamentals’
The UAE’s real estate market is based on strong fundamentals and unlikely to be hit by the recent global liquidity crunch, a top company executive said yesterday.
“Historically, we have seen shortage of housing units in Dubai, but now we are seeing that in Abu Dhabi. The government of Abu Dhabi has launched the 2030 Urban Planning project to regulate all the future developments based on two factors – the economic growth of the emirate and the demand that the emirate will require for the next 20 years. So we believe the future is positive,” said Mounir Haidar, Chief Executive Officer of Sorouh Real Estate Company.
Haidar said the UAE market is still growing and there are considerable business opportunities for all.
He said the UAE realty market has sufficient lenders. “There is always a lending institution for a serious developer,” he said.
Regarding oversupply, Haidar said Abu Dhabi was far from it and is developing according to market fundamentals based on demand and supply.
“Dubai did what they believe is right for it. As far as Abu Dhabi is concerned when it comes to Sorouh's projects, they are well planned and well thought-out,” Haidar added. Sorouh is looking to develop in Morocco and Egypt.
The company had a market capitalisation of more than Dh23.2bn and projects as in July 2008, were valued in excess of Dh70bn.
Octobre 2008 - Back to Title
Dubai in worlds top 10...
Dubai has entered the top 10 list for the world's most expensive office market, soaring ahead of previous giants such as New York and Hong Kong.
The Global Market Rents survey from CB Richard Ellis shows a number of changes as commercial property undergoes turmoil resulting from the credit crunch and Asia emerges as a major player.
London's West End was number one. Moscow moved into second with Paris at number eight.
In third place is Tokyo (Inner Central), Mumbai at four, then Tokyo (Outer Central), London City, New Delhi at seven, Singapore at nine and Dubai at 10, according to the research which tracks world markets with the highest and fastest growing occupancy costs for the 12 months to the end of March 2008.
Confirming the rise of Asian markets in this sector, Ho Chi Minh City had the fastest growing occupancy rates up a staggering 94 per cent followed by Moscow on 93 per cent and Singapore on 86 per cent.
"Office occupancy costs are continuing to defy sluggish economic conditions and the credit crunch, as they rise faster than global inflation," said Dr Raymond Torto, CBRE's Global Chief Economist. "These cost increases are dominated by emerging markets, caused by both supply and demand imbalance and the depreciation of the dollar relative to local currencies. In some of these emerging markets, Class A office space is seriously lacking," he said.
With Dubai and Singapore moving into the top 10 for the first time these markets are now ahead of Hong Kong and New York.
Although mid-town Manhattan is still the priciest market in the US and number 13 worldwide.
Octobre 2008 - Back to Title