Billions of Rs. Drown in Dubai Real Estate

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http://www.dailywaqt.com/071208

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'Pak investors lose billions in Dubai real estate downturn'



Sunday, December 07, 2008
ISLAMABAD: Pakistan Economy Watch on Saturday said a host of Pakistani businessmen have lost billions of dollars of investments in speculator-oriented Dubai real estate property downturn.

"Those who lured Pakistanis by showing them golden dreams of rich returns by investing in the oil-poor emirates have walked away silently, leaving the Pakistani businessmen in the lurch. These include salesmen, so-called developers, intermediaries and bankers, etc who must be brought to book," said a report issued by the Pakistan Economy Watch.

The report, titled "Overseas Risk Report", added that the shares of top property giants in Dubai have fallen as much as 85 per cent bringing many mega projects to a halt. "Many local and foreign companies have opted for mergers to avoid bankruptcy.

The giants are cutting expenses, plans and number of employees," the report added.

It said the losses in the realty sector were roughly equal to that of the GDP of Dubai. The government of United Arab Emirates UAE) is pumping billions to avoid the failure and $30 billion have been pumped in to the banking system and selling of some highly acclaimed assets is under serious consideration.

Dubai is facing losses to the tune of hundreds of billions of dollars and risk of defaults. The situation has resulted in stock exchange crash, dried up credit and shaky wealth funds. Banks have minimised limit of credit cards and mulling their ability for foreclosures.

"UAE has already lost $100 billion in the global crunch and it has $500 billion of assets," said Dr Murtaza Mughal, President Economy Watch said while unveiling the report, adding that it was already under stress due to some 60 per cent slide in oil prices.

The plans to make Dubai a hub of financial activities may not realise as attempts for unnatural growth result in such a situation, he added.


http://www.thenews.com.pk/daily_detail.asp?id=151059

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Global investors eyeing Dubai realty market, once again

With the recession having loosened its grip across the globe, global investors have begun eyeing Dubai real estate market as the property prices have slowly begun to move towards reasonable levels, an industry expert said.

The latest results from the Dubai House Price Index from Colliers indicate that real estate prices in Dubai have grown almost seven percent during the third quarter of the year from the previous quarter, said Tej Kohli, real estate investor and founder of Ozone Real Estate.

The results indicate a bounce in the market and are a true indication of excellent recovery, Kohli said.

According to Kohli, the stability in property prices is set to be steady from this point on, given the fact that real estate prices are moving to more reasonable levels.

The best indication about the Colliers report is that transactions increased by 64 percent during the third quarter, due to relative stability in prices and affordable housing.

Moreover, the growing property boom will be further strengthened by a series of new launches and openings within the emirate, the report said.

Towards mid-December this year, the world’s tallest tower Rose Rayhaan, will see a gala opening, at Sheikh Zayed Road, after which, the five-star Jebel Ali Golf Resort and Spa will re-open following a brief renovation, Kohli pointed out.

A series of projects due for launch, apart from the entry of new airport, a series of high-end hotels, including The Conrad Hotel Dubai and second Ritz Carlton are all ready for opening early next year.

This will be followed by the opening of the crescent-shaped The Palm Jumeirah, Royal Amwaj Resort & Spa, Jumeirah Golf Estate, Dubai International Airport, Tiger Woods' Al Ruwaya Resort, all set to commence in 2010.

The slew of launches indicate that Dubai is well on track, and the global tourist numbers are up by 4 percent during first half of 2009, compared to same period last year, Kohli concluded.