By Faryal Najeeb
KARACHI: The super-luxurious residential and commercial projects that had been initiated by foreign developers of United Arab Emirates (UAE) are rumored to be under a cloud as the construction work on some such projects had to be rescheduled following the impact on the real estate crises in the region. But the Gulf builders contend that everything is on track and their project will proceed as per plan.While the local real estate market is booming with the popularity of small housing projects initiated by local developers, investors in projects by property giants like Emaar Pakistan Pvt Ltd and Al Ghurair Giga Pakistan Pvt Ltd are worried about the status of their investments in both Islamabad and Karachi.One investor, requesting to remain anonymous shared that he had repeatedly visited the project site, only to see “barren land with a lot of machinery and work force carrying out tasks at a snail’s pace.
I have repeatedly inquired on the status of the venture and I am always assured that it would be completed on time. But I fail to understand how they would manage when my eyes tell me otherwise,” he expressed.On the other hand, an insider of the real estate industry informed that the UAE market is predicted to slump further and this will impact local projects taken up by these Gulf-based giants. He said “more projects would be cancelled and abandoned in the months to come and these are directly going to affect the projects in Pakistan too.”Referring to the UAE market, the source further stated that Emaar requires billions of Dirhams to complete their existing projects which they had planned to borrow from Abu Dhabi who have in turn asked for shares in the Emaar projects instead.“Similarly, other big developers such as Nakheel, Damac and Ruwad have laid off staff in massive numbers while shares of the real estate sector of UAE have plunged from as high as Dhs11 per share to a mere Dhs3 per share,” he informed.“The UAE developers that are here have been rumored to be planning to also lay off people or worse abandon projects and flee with the investors’ money” he continued. “The best bet in these times is caution, as the market is highly speculative right now.”
When The News contacted Chief Executive Officer of Emaar Pakistan, Dr Dia Malaeb, he denied any such news and said that they continue to believe in the Pakistani real estate market’s potential as the global financial meltdown had not affected this country as severely as the UAE market. He said that the projects that had already been launched would go ahead as planned and Emaar Pakistan would ensure that they are delivered to their investors on time and according to their agenda.Malaeb informed that their project Canyon Views in Islamabad is all set to be handed over to its investors in a few months’ time, whereas the work on The Highlands, also in Islamabad and Crescent Bay in Karachi continues to be completed as per the schedule.
For more on this article, please click on the following link: Foreign real estate projects in Pakistan feel the heat of the UAE market downfall: The News
Showing posts with label UAE Real Estate Market. Show all posts
Showing posts with label UAE Real Estate Market. Show all posts
Friday, January 9, 2009
Friday, December 12, 2008
Pakistanis worried about UAE investments: The News
Friday, December 12, 2008
By Faryal Najeeb
KARACHI: Pakistani real estate investors in the United Arab Emirates (UAE) are not the only ones to have lost out heavily on their investments, for many well-off Pakistani families looking towards owning a home in the pearl of the desert are now in a lurch as construction for several projects has stopped due to the financial crunch the Arab country is facing.
One Pakistani investor, Waleed Mughal who had invested in a residential project is “worried to death” over what would happen now as he had made plans to move out of his rented villa and take up residence in his own home once completed.He expressed that the freehold developers had promised to complete the project by early 2010 and he had invested heavily in owning an apartment. “Now the project is 80 per cent complete but the future of the remaining 20 per cent is uncertain. Despite repeated queries, I haven’t received any response on what is likely to happen next,” he articulated.
Many others like Waleed are in the same dilemma as the freehold properties of UAE promised world class luxuries and were priced for the same. Not being professional investors, and digging in to their savings to make their dreams come true, these families are now completely distressed.According to a real estate expert’s analysis, the UAE real estate market has already declined by 22 per cent and a further 17 per cent of the downfall is expected before the year ends.
While local investors have been left severely wounded by the losses they experienced there, which run in millions and billions of rupees, many families dreaming of Dubai as their second home and having permanent residency are now pale with fear over their investments.“Though the UAE government continues to decline the fact, several projects in the country have come to a standstill” informs a real estate expert from UAE. He shares that the Arab country claims that the projects have simply slowed down and all will be well by the beginning of the new year, but the reality is far from it.
For more on this article, please click on the following link: Pakistanis worried about UAE investments: The News
By Faryal Najeeb
KARACHI: Pakistani real estate investors in the United Arab Emirates (UAE) are not the only ones to have lost out heavily on their investments, for many well-off Pakistani families looking towards owning a home in the pearl of the desert are now in a lurch as construction for several projects has stopped due to the financial crunch the Arab country is facing.
One Pakistani investor, Waleed Mughal who had invested in a residential project is “worried to death” over what would happen now as he had made plans to move out of his rented villa and take up residence in his own home once completed.He expressed that the freehold developers had promised to complete the project by early 2010 and he had invested heavily in owning an apartment. “Now the project is 80 per cent complete but the future of the remaining 20 per cent is uncertain. Despite repeated queries, I haven’t received any response on what is likely to happen next,” he articulated.
Many others like Waleed are in the same dilemma as the freehold properties of UAE promised world class luxuries and were priced for the same. Not being professional investors, and digging in to their savings to make their dreams come true, these families are now completely distressed.According to a real estate expert’s analysis, the UAE real estate market has already declined by 22 per cent and a further 17 per cent of the downfall is expected before the year ends.
While local investors have been left severely wounded by the losses they experienced there, which run in millions and billions of rupees, many families dreaming of Dubai as their second home and having permanent residency are now pale with fear over their investments.“Though the UAE government continues to decline the fact, several projects in the country have come to a standstill” informs a real estate expert from UAE. He shares that the Arab country claims that the projects have simply slowed down and all will be well by the beginning of the new year, but the reality is far from it.
For more on this article, please click on the following link: Pakistanis worried about UAE investments: The News
Sunday, November 16, 2008
Dubai property boom halts: The News
Sunday, November 16, 2008
DUBAI: Dubai property shares plunged and its biggest private developer slashed jobs this week as the global financial crisis tightened its grip on the tiny emirate, until now synonymous with the Gulf Arab real estate boom.
Dubai’s glittering skyline and luxury tourism sector have lured investors in droves over the past five years. But property prices have begun to fall, according to brokers and banks, in one of the clearest signs to date that the bubble has burst.
A real estate crash in Dubai would call into question the futures of millions of immigrant workers, many from India and Pakistan, and whether energy exporter Abu Dhabi would run to the rescue of its high-flying but poorer neighbour.”Villas that were very hot before the crisis have fallen. The buyers were chasing the sellers but now it’s the other way round,” said Quaid Abbas, property consultant at Engel & Volkers.
For more on this article, please click on the following link: Dubai property boom halts: The News
Wednesday, November 12, 2008
Local real estate revives as UAE market spirals down: The News
Wednesday, November 12, 2008
By Faryal Najeeb
KARACHI: As property markets in the United Arab Emirates (UAE) face a critical slump, local investors are turning away from the Arab country and are starting to look towards Pakistan, Malaysia and Turkey. Experts in the field say all the investment money that had flown out of the country towards Dubai and other emirates is now coming back. “Ajman is completely dead, whereas Dubai, which had 13 per cent of Pakistani investors’ money in the real estate sector, is left grappling with eight per cent,” stated Munir Sultan, Senior Vice-Chairman of the Federation of Pakistan Chambers of Commerce and Industry Sub-committee on Housing and Construction.
“The UAE has injected about $40 billion for lending purposes, and mortgage lender Amlak has had to be merged owing to fears of bankruptcy,” said Sultan. He explained that Pakistanis had booked properties in Dubai and Ajman to make a profit, but eventually discovered that they had incurred a loss after being swindled by several middlemen. “There were no builders, and of course, a structure cannot stand on its own without one.”He revealed the UAE market had declined by 21 per cent. According to him, local investors who had invested in the Arab country were mostly those who had dipped one hand in shares of the local stock exchange, and the other in UAE real estate. “Since both have been hit hard at the same time, these investors are feeling the pain. It’s disastrous for Pakistani investors.”
Sultan further said the reason for the downtrend is an imbalance between the demand and supply in the UAE real estate market. He expatiated the rapid pace of construction in Dubai had led to saturation in the market.
For more on this article, please click on the following link: Local real estate revives as UAE market spirals down: The News
By Faryal Najeeb
KARACHI: As property markets in the United Arab Emirates (UAE) face a critical slump, local investors are turning away from the Arab country and are starting to look towards Pakistan, Malaysia and Turkey. Experts in the field say all the investment money that had flown out of the country towards Dubai and other emirates is now coming back. “Ajman is completely dead, whereas Dubai, which had 13 per cent of Pakistani investors’ money in the real estate sector, is left grappling with eight per cent,” stated Munir Sultan, Senior Vice-Chairman of the Federation of Pakistan Chambers of Commerce and Industry Sub-committee on Housing and Construction.
“The UAE has injected about $40 billion for lending purposes, and mortgage lender Amlak has had to be merged owing to fears of bankruptcy,” said Sultan. He explained that Pakistanis had booked properties in Dubai and Ajman to make a profit, but eventually discovered that they had incurred a loss after being swindled by several middlemen. “There were no builders, and of course, a structure cannot stand on its own without one.”He revealed the UAE market had declined by 21 per cent. According to him, local investors who had invested in the Arab country were mostly those who had dipped one hand in shares of the local stock exchange, and the other in UAE real estate. “Since both have been hit hard at the same time, these investors are feeling the pain. It’s disastrous for Pakistani investors.”
Sultan further said the reason for the downtrend is an imbalance between the demand and supply in the UAE real estate market. He expatiated the rapid pace of construction in Dubai had led to saturation in the market.
For more on this article, please click on the following link: Local real estate revives as UAE market spirals down: The News
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