Mohanad Alwadiya

استقرار نسبي في أسعار العقارات

محللون: سوق دبي لاتزال جاذبة وتحمل كثيراً من الفرص

استقرار نسبي في أسعار العقارات
المصدر: سامح عوض الله – دبي
التاريخ: الإثنين, ديسمبر 07, 2009
جريدة الإمارات اليوم
أكد عقاريون أن أسعار العقارات في دبي شهدت استقراراً نسبياً خلال الشهرين الماضيين، إذ تذبذبت بشكل طفيف في نطاق 5٪ ارتفاعاً وانخفاضاً. وطالبوا المطوّرين في الإمارة بمزيد من المرونة، وإجراء خفض طوعي لأسعار العقارات.

وقال المدير التنفيذي لشركة «الفوائد العقارية»، وليد الزرعوني، إن «أسعار العقارات في إمارة دبي شهدت تذبذباً سعرياً في نطاق 5٪ انخفاضاً وارتفاعاً». ودعا الشركات العقارية إلى خفض أسعارها حتى تعيد الثقة بينها وبين المستثمرين»، معتبراً أن «قاعدة العرض والطلب لا تحكم السوق في مجملها، فهناك بعض العقارات زادت أسعارها على معدلات ما بعد حدوث الأزمة المالية العالمية، مثل أسعار الفلل في (نخلة جميرا) ذات الأربع غرف التي تراجعت إلى أربعة ملايين درهم في بداية الأزمة، ثم ارتدّت مرة أخرى إلى سبعة ملايين درهم في الوقت الراهن»، لكنه أكد أن «السوق العقارية في دبي لاتزال تحمل كثيراً من الفرص».

من جانبه، أفاد المدير التنفيذي لشركة الاستشارات العقارية «سي بي ريتشارد أليس»، نيكولاس ماكلين، بأن «الدعاية السلبية التي قامت بها وسائل إعلام غربية ضد دبي، خلال الأيام الماضية، على خلفية قيام شركة (دبي العالمية) بتأجيل سداد استحقاقات سندات لها، ليس لها أي تأثير مباشر في أسعار العقارات على المدى القصير». وتوقع أن تشهد السوق العقارية في الإمارة تراجعاً جديداً في أسعار العقارات السكنية، أما العقارات التجارية فسيكون التأثير فيها طفيفاً جداً.

ولفت إلى أن «العرض والطلب لايزالان العاملين الأساسيين المحددين للأسعار في السوق العقارية، خصوصاً في العقارات السكنية التي يزيد الطلب عليها مع زيادة تأسيس الشركات في دبي، التي تكون مضطرة للشراء أو الاستئجار لتسكين موظفيها». وأوضح أن «الطلب الآن يعبّر عن الطلب الحقيقي، فالمستثمرون المضاربون الذين حركوا السوق في الأعوام الماضية، اختفوا وبقي الآن المستثمرون الفعليون الذين يريدون الاستثمار في مشروعات جاهزة». وذكر ماكلين أن «أسعار العقارات السكنية مرشحة لمزيد من الهبوط على المدى القصير، أما على المدى الطويل، فمازالت دبي سوقاً جاذبة لكل من العقارات السكنية والتجارية».

إلى ذلك، توقّع الرئيس التنفيذي لشركة «هاربور» العقارية، مهند الوادية، أن يتواصل الاستقرار الذي شهدته نهاية الربع الأخير، خصوصاً في المشروعات المكتملة، لكنه رجّح من جهة أخرى انخفاضاً مرحلياً في أسعار العقارات التي سيتم تسليمها قريباً، وأرجع السبب في ذلك إلى «عدم توافر السيولة لدى بعض المُلاك لإتمام الدفعات المستحقة عند التسليم».

وأضاف أن «معادلة الطلب والعرض لها تأثير مباشر في حركة السوق على مستوى الأفراد والقطاعات، لكن هنالك عوامل أخرى لها تأثير في أداء سوق العقارات، ومنها: توافر السيولة، والشفافية بين جميع الأطراف في السوق، وقوة البنية التحتية القانونية».

وأوضح أن «خفض الشركات العقارية الأسعار بطريقة عشوائية ليس حلاً مضموناً لزيادة الطلب، إلا أنه يجب على شركات التطوير أن تعيد النظر في أسعارها الحالية والاستراتيجيات المتبعة لوضع تلك الأسعار بما يتناسب مع الوضع الحالي للسوق، مع الأخذ في الاعتبار مستويات ربح منطقية، وتوفير عوامل جذب للمستثمرين، وتوفير خدمة للزبائن (قبل وبعد البيع) باحترافية».

Burj Dubai units to see stable long-term growth

Long-term prospects for investors in the Burj Dubai tower are relatively solid if they have paid a fair price, with expected appreciation of 10 to 15 per cent per annum over the time, believe realty experts.

In a survey conducted by Emirates Business, Mike Atwell, Head of Middle East Operations, Cushman & Wakefield; Matthew Green, Associate Director, CB Richard Ellis (CBRE), Middle East; Adel Hamaizia, Sales and Marketing Director, RE/MAX Abu Dhabi, Mohanad Alwadiya, Managing Director, Harbor Real Estate; Chet Riley, Equity Research, Middle East, Nomura International, and Venkateshwaran Ramadoss, Senior Research Analyst, Real Estate Department, Kuwait Financial Centre, said iconic buildings are attractive to both investors and occupiers, but the building’s success depends on the supply and demand dynamics in the market.

Emaar Chairman Mohammed Alabbar has said Burj Dubai will open on January 4, 2010 to coincide with the four-year anniversary of accession to power by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Experts said returns on quality assets have always been there. However, investors have to take a long-term view on property and move away from the speculative model that has evolved in Dubai.

Is buying commercial or residential units in Burj Dubai a wise choice today since prices have bottomed out?

Atwell: Although the property market within Dubai has witnessed a significant price correction this year, we believe it is still too early to say whether prices have bottomed out. A degree of uncertainty remains in the market, caused by a number of factors including lack of available debt financing, potential over-supply and quantifying end-user demand.

Green: If we look in isolation at current prices over 2008 levels, then it certainly looks an attractive investment. However, we must remember that the market has changed significantly over the last 12 months and investors can no longer assume double-digit annual growth rates. During the period demand has weakened substantially, pushing vacancy rates higher and adding to the risk of unit voids. Investment decisions within the current market climate will thus vary, dependant on the overriding driver. Those looking for buy-to-let properties are likely to be more cautious considering weaker demand levels, while those looking at owner occupier assets are likely to be more bullish.

Hamaizia: Yes, as the saying goes “what goes up must come down”, and in this context vice-versa. Major cities of the world (mostly now mature) have all seen cycles of which crazy, semi or mini booms witnessed crazy prices that came down substantially. For example, half or less/50 per cent down –London in the early 90s, Singapore more recently… but subsequently observed a stable recovery, typically reaching at least 75-85 per cent of peak times.

Alwadiya: Investment recommendations are unique for each client and are directly linked to the structure of returns that an investor is seeking in a project. In reality, those clients who paid extremely high prices for Burj properties in 2008 will not enjoy initial healthy return on investment (RoI) per annum – as rental prices continue to drop as a result of the global economic crisis. Some may receive as little as two per cent return on investment in their first year or two. However, those investors who are instead seeking the benefits of long-term capital appreciation and are able to wait for 10 years, enduring lower RoI per annum, will be handsomely rewarded for their patience. I personally believe the price of the Burj will continue to grow at a promising rate over the next 10 years making it an extremely worthwhile investment over other projects.

We were against the investment in the Burj last year due to the rapid price escalation that was seen in the project in 2008 but we will definitely recommend investing currently to capitalise on the excellent prices that are currently on offer and the expected capital appreciation that will be generated as soon as the tower is launched.

Riley: The Burj Dubai is already, and will remain, an iconic building and the focal point for the downtown area. As such residential space should normally have additional intrinsic value and demand but we still believe any investment in real estate should be undertaken for the long term. The choice to buy (or lease) commercial space has to be made considering a number of different variables depending on use. For example, rental levels and potential yields, service charges, tenant demand and expected occupancy, which all ultimately drive capital values. We believe in the long-term prospects of Dubai considering the positioning and infrastructure spend to date. This gives the emirate a lead over regional counterparts, so we believe there will always be a long-term demand for high quality property.

Ramadoss: An analysis of Colliers International’s Q3 2009 foreign ownership house price index suggests prices for properties under construction in Downtown Burj Dubai increased by 15 per cent, while excluding this, the index contracts. This is essentially the premium assigned to the development approaching completion which got captured. While prices appeared to have bottomed out in general, these are not clear signals of a complete turnaround as prices could track down should there be a market- wide contraction. Hence, it would be appropriate to buy if the intention is to have a stable income potential or to bet on the extent of premium that is still left to be priced.

Do you believe the tower offers a good investment proposition for long-term inventors?

Atwell: The Burj Dubai is well located, being within close proximity of the existing and future key CBD areas – DIFC, Sheikh Zayed Road and Business Bay. It is also well serviced by other amenities, including surrounding hotels, Souk Al Bahar and Dubai Mall. The Burj Dubai is an iconic building and will be the tallest man-made structure ever built. It is in a prime location and forms the centrepiece of Downtown Dubai, a large-scale masterplan development that will include more than 30,000 residential units, Dubai Mall, nine hotels and commercial space. The building itself will contain 175-key Armani hotel plus Armani Apartments, an additional 700 apartments and office space, although how much remains unclear. Iconic buildings are attractive to both investors and occupiers. However, the building’s success will ultimately depend on the supply and demand dynamics in the market, pricing and the underlying property fundamentals. Other key factors will include the operational efficiency of the building, which is dependent on but not limited to the building management system, lifts, parking, accessibility, public transport and how the strata management company is run.

Green: Returns on quality assets are there to be had, but investors need to start taking a more long-term view on property and move away from the speculative model that has evolved in Dubai. When choosing an asset to invest in, it is important to select a product that has a genuine lasting prospect for returns. The Burj Dubai will offer a prestigious address within the world’s tallest tower, a superior product quality, world-class facilities, and, importantly, it should also be well managed. All these factors would suggest the long-term prospects for investors are relatively solid, assuming a fair price is paid.

Hamaizia: Prices of property situated in proximity to, or that are a part of any signature or world famous building tend to hold value (long term) or are semi-immune to economics or exogenous shocks… be it London, Paris, New York or Dubai for that matter (due to views, footfall/tourism, shopping or financial districts or interest in that structure from an arts or architectural perspective).

Alwadiya: The Burj Dubai tower has all the factors that will set it for success: iconic design, excellent location, exceptional finishes, first-rate facilities, fantastic mix of assets. Any investment in a tower of this calibre is viable now and will continue to be well into the future.

Riley: Investors with long-term investment horizons have generally done well from property across most international markets, but as we have recently seen both residential and commercial property markets are subject to cycles, which can have some large swings. As the market becomes more established in Dubai, cycles should start to stretch longer and become less volatile. Previously speculative gains were driving the market, but we expect to see investment returns at much lower levels than those seen during the construction phase. One of the core tenets of property investment is its lower risk nature, but ultimately this equates to lower returns. Good quality property should deliver stable investment income with some capital appreciation, which is what long-term investors are generally looking for.

Ramadoss: Such towers often get a prestige value attached to them and would be a low-risk/low-return investment option as they tend to be pricey. The advantage is in its lower volatility as prices tend to contract at a smaller multiple relative to the market, as is the case with a typical ultra high-end developments. However, one needs to assess the extent of premium by comparing it with peer developments across the globe as in the current scenario, it could attract speculative interests as well.

What kind of appreciation can one expect in the long term, say five to 10 years?

Atwell: Capital growth is dependent on both rents and yields, which are in turn affected by numerous other factors. We cannot forecast anticipated appreciation over the long term. However, we would anticipate yields will sharpen from the double digit expected returns that we see today.

Green: If we consider the rapid change in Dubai over the last five years, then you can see the pitfalls of predicting the future in such an un-transparent environment. The Dubai market needs a period of stability so that investors can start to regain some of the confidence lost as a result of the downturn. Only after this is achieved can we really start to look for any level of price growth.

Hamaizia: As aforementioned, real estate history of the New Yorks, Singapores and Londons of this world, have always seen a stable recovery (back to at least 75-85 per cent of peak times within five years), when infrastructure, employment, investment and other city value-adding activities are taking place, supporting or present.

Alwadiya: The Burj is by far one of the best investments currently available for those investors who are able to wait for capital growth as opposed to initial return on investment per annum. It is likely that we will see a significant increase in the amount of unit trading following the tower launch in January. The Burj will continue to retain its value after its launch, and will increase its financial value/appreciate over time with an estimated rate of 10-15 per cent per annum. If you compare its price to the different towers around the world that once held the title of “the tallest”, you will see that they still today command an average price of over Dh10,000 per square foot. This is a far cry from what we are experiencing in today’s market where we are seeing the Burj command a price of less than half that amount.

Riley: We expect the level of capital appreciation to be relatively moderate in the short term. Over a five to 10 year horizon, we would normally expect moderate capital appreciation of perhaps five per cent per annum for this type of property, but this also depends on economic factors and conditions such as inflation. Generally speaking, Dubai’s residential and commercial properties are both linked to the economic cycle, perhaps more so than established markets, because the population base is more transitory. So this is a consideration for investors. Ultimately the ‘buy to let’ investor group will determine the market value so rents should establish the valuation floor.

Ramadoss: Longer-term price appreciation would tend to reflect the market level price appreciation. However, the price behaviour would be similar to the performance of a low beta stock comparedto the market average price change.

Brokers Must Adopt Fresh Approach

Despite the barrage of articles and opinions depicting economic doom and gloom of a mammoth scale, reports of tumbling property values, double-digit percentages losses by developers and property investors (the list goes on), no one is paying attention to the current state of the brokerage industry. The remaining standing companies still believe that, if things are done differently, with a client-centric philosophy, an incisive fact- based approach and a clear set of realistic objectives and values derived from truly objective assessments, the existence of real opportunities in the UAE real estate scene to create and build for the long-term was undeniable.

Pre-2008 saw all manner of people get into the real estate brokerage industry. The lucrative and easy to make commissions were too attractive to ignore. That is fine since there is nothing wrong in wanting to (legally) better yourself or income. But many thought their skills alone were what brought in results – none more so than the plethora of salespeople, who flocked to the field, many of whom were not familiar with properties.

Now, as the UAE property market matures through its first crisis, the nature of selling and buying realty is changing irreversibly and with it a lot of new industry and consumer trends are emerging, one of which is the lack of satisfaction of customers with real estate brokers. According to a survey conducted by Harbor Real Estate in October 2009, 61 per cent of consumers who bought property in the last two years are dissatisfied with the performance of real estate agents who brokered their purchases. What we have here is an indicator that brokerage companies need to shape up in order to survive during and beyond the financial crisis. The level of proficiency in effective consultancy, based on sound knowledge of the market and an understanding of the buyer’s requirements, appears to be the main shortcoming. Buyers today have choice and are more knowledgeable about the market, and they seek advice from professionals whom they feel they can trust. Unfortunately, in the majority of cases, consumers are left feeling disappointed. This lack of trust is producing a lot of challenges for property brokers, including questioning of their standard commission rates, lack of sole representation or appointment and negative pre-judgment and perceptions.

The main concern is that these problems are not only affecting bad and illegal freelance brokers only but also impacting the professional and experienced brokers and overall reputation of the industry as well.

Traditionally, real estate has been viewed as a sales industry. The scenario is radically different in today’s environment. Customers have evolved to become more educated, better informed, more value conscious and demand more for their dirhams. Their expectations of the companies and the brokers they buy or sell through are much higher. They are no longer willing to be pushed around by unprofessional brokers. In short, they want better customer service. So brokers have to work harder and spend more effort and time to regain the trust of buyers and sellers. They need to realise that true and sustainable success comes from repeat business and word-of-mouth.

Customer service is one of the greatest keys that can help real estate service providers succeed. It can literally make or break a company. This is so because the entire business, marketing, sales, leasing and profits depend on customers.

Great marketing can help brokerage companies acquire new customers, but it is great customer service that ensures that the customers keep coming back. According to our survey, most customers quit dealing with a certain brokerage company because of an indifferent attitude towards them from the business owner, managers and/or employees. A typical brokerage company will only hear from a handful of dissatisfied customers; most of the rest of the customers will just quietly go away and never come back. To further compound the problem, a typical dissatisfied customer will tell an average of seven to 10 people about his problem and the bad service offered by the company.

Pas du tout, encore une fois, si ce n’est pas à l’intérieur trop longtemps. Il y a un autre danger: il n’y a pas beaucoup d’espace et un mouvement négligent d’un tampon peut pousser plus lisez plus ici d’où il est plus difficile de l’obtenir. Mais il y a un moyen de ne pas verser un lit sans tampon: appuyez sur le diaphragme, puis la sélection sera temporairement bloquée sans “bouchons” externe.

Secondary Market Prices in Springs and Meadows Surge

Secondary market prices of properties in the Springs have increased in the range of 11-33 per cent since the beginning of this year, while prices in the Meadows have surged in the range of 16-19 per cent in the same period, according to a real estate firm.
Vineet Kumar, Head of Sales, Asteco said: “In Springs, two-bedroom villas currently sell for Dh1.5 million onwards, up 36 per cent from Dh1.1m at the beginning of this year. Three-bedroom villas start from Dh2.8m from Dh2.6m in January.
“In the Meadows, current prices for four-bedroom villas start from Dh3.8m, up 18.75 per cent from around Dh3.2m at the beginning of the year. Five-bedroom villas, meanwhile, are around Dh4.4m now, up 16.5 per cent from Dh3.8m on January prices.”
According to Asteco, in the fourth quarter of 2008, prices for two-bedroom villas in the Springs were around Dh1.75m. In Meadows, a four-bedroom villa was around Dh4.5m during the same period, while a five-bedroom villa was around Dh5.2m.
“Prices in the Springs and the Meadows have seen a quarter-on-quarter steep fluctuation owing to market conditions. It would seem that prices are trying to find stability in these developments and their current levels are trying to catch up with the third to fourth quarter prices of last year,” said Kumar.
He said prices were static in the first quarter and began to rise from the second and third quarter.
Claire Collier, Manager, In-Style Real Estate said: “Currently the average price of a three-bedroom villa in the Meadows is in the region of Dh3.9m and Dh5m. A four-bedroom villa in the Meadows is also in the region of Dh3.9m and Dh5.5m. A five-bedroom villa is currently around Dh5.9m to Dh7m.”
Mohanad Alwadiya, Director, Harbor Real Estate said: “Prices appear to have stabilised in the Springs and the Meadows largely due to the increase in demand.
“The residential market is currently being driven by a flight to affordable assets. The mid- to low-income earners, who were previously excluded from the market due to high prices, are now taking advantage of the new levels of affordability. Projects such as the Springs and the Meadows are in demand, with buyers taking advantage of prices which are anywhere between 35 per cent and 50 per cent lower than the peaks of 2008.”
“When it comes to sales, we have noted a small segment of owner-occupiers that are after building equity rather than wasting money on rent,” he said.
“Overall, although villas and townhouses demand a higher tag price compared to apartments, we believe the investors will still be interested in investing in villas due to the high demand and the high return on investment that these components have been delivering.”
Collier said the Meadows is geared more towards the end-user, since it has became more affordable. “The Springs is a mixture but still offers a good buy-to-let market and is the affordable choice for young families that require a garden area.
“Also, as an Emaar project, banks have been more inclined to lend on it. The Meadows and Springs are both older and more established communities, so when some projects were put on hold, buyers turned to these developments to move into as their homes.”

Local and Federal Authorities Need to Form Much Closer Ties

The UAE real estate sector must have more co-ordination between regulatory bodies in different emirates and the proposed federal real estate regulatory body to tackle various issues concerning the sector, analysts said.

“What the government needs to do is have real estate regulatory bodies of each emirate to liaise with one central regulatory body and the federal immigration department to oversee real estate issues such as visa regulations,” said Chet Riley, Vice-President, Equities Real Estate Analyst, Nomura International.

“Three years ago, people were trying to encourage buyers through visa offers. When the market got overheated, visa rules were tightened. Today there is a lot of confusion over the rules and regulations in the real estate sector regarding visas.”

He said: “A central regulatory body for the oversight of issues such as immigration is probably required to ensure the consistent application of immigration law and prevent forms of regulatory arbitrage related to real estate.

“There are aspects of regulations that we think should remain at the emirate level, which could include dispute resolutions and arbitration, planning consents and associated municipality issues such as infrastructural requirements.”

Emirates Business reported yesterday that the Ajman Real Estate Regulatory Agency (Arra) had submitted a proposal to federal authorities to overhaul current property visa regulations. Arra wants to remove property values, fixed incomes or compulsory exits as criteria for granting or renewing six-month residency visas. 

Ajman’s regulatory body put in a five-point submission and said it should be possible to renew visas every six months for up to three years without the need to leave the country.

Parvees Gafur, Executive Vice-President – Sales, Gowealthy real estate, said: “Co-ordinated efforts are needed between real estate regulatory bodies in various emirates of the country and a central regulatory body that will work in close connection with the immigration department of the country to tackle visa issues of real estate investors.”

“We would even recommend that the immigration department allocate representative resources to each of the real estate regulatory bodies to provide an integrated service package and assist investors with their visa queries promptly,” said Gafur.

He said: “At an operational level, a decentralised approach with individual real estate bodies within each emirate will be far more efficient and effective to govern real estate regulations as each emirate has different challenges, visions and focus. 

“However, a central authority established to monitor the progress of individual bodies will help in guiding various factions towards overall positioning of the emirate to occupy a strategic place within the global economic platform. 

“Such an entity can facilitate best practices and federal-local interactions that can have a positive influence on shaping the overall identity of the emirate.”

Farina Ahmed, CEO, BSEL Infrastructure, an Ajman developer, said: “Any co-ordinated effort taken to bridge gaps in the real estate sector is a welcome move. I believe there should be co-ordinated efforts among different emirates’ regulatory bodies and one central body.” 

Real estate analysts in the UAE have welcomed Arra’s initiative to submit a proposal to the federal government.

Mohanad Alwadiya, Managing Director, Harbor Real Estate, said: “The Arra initiative is a positive move towards attracting foreign investment and boosting the level of confidence among all the relevant stakeholders in the property industry.”

Iseeb Rehman, Managing Director, Sherwoods Independent Property Consultants, said: “The proposal is a positive move. Any effort taken to resolve real estate issues by real estate regulatory bodies is a step in the right direction.”

“In Ajman the real estate sector has been seeing some swift and timely action. The feedback from clients and developers is that Arra is resolving issues quickly and trying to provide clarity.

“Conditions for residing in the UAE is a federal issue, but they need to consider current market climate versus current income situation. Regulators need to be realistic and at the same time appealing to people looking to come to the UAE. If conditions become too stringent it will be harder for people to comply.”

Riley said: “Arra and Rera [Dubai Real Estate Regulatory Authority] are being relatively proactive in the area of co-ordination, which is a positive step and it is very important to continue dialogues among the six emirates. Under the present circumstances, Arra’s initiative, though in the initial stages, is a step in the right direction. We welcome the initiative to establish visa regulations and think this should be set at a federal level in conjunction with immigration authorities to remove any confusion. Currently, the major challenge faced by the region is one of customer confidence, be it investors, end users or even corporate entities.”

“It would, however, be difficult to have a minimum price level set across the emirates given the disparity of pricing in each area. The key issue that we see is the ability of the applicant to support themselves and their dependants, rather than the value of the property, if they were looking to reside in the country,” said Riley.

“Ajman is a different market from Dubai. Imposing limits across the board will be difficult in all the emirates,” he said.

Gafur said: “The proposal is a first step towards addressing visa issues. If implemented, steps such as these will give further impetus to a larger segment of investors and business entities that have long-term business plans in the region.”

“The minimum criteria for property investment should be looked into very closely and the medium- to long-term impacts of such steps have to be assessed using situational planning and forecasting studies. Investment strata-led visa restrictions, if planned efficiently, could have a positive influence in the market by ensuring the right kind of investments and investors are at play over substantial and optimum time periods.”

The BSEL CEO said: “The six-month visa regulation is not enough for an investor in Ajman. Residency permit should be for three years. With six months’ visa tenure, investors lose faith in the real estate market in Ajman.”

Alwadiya said the property market recovery in the UAE needs to be supported by solid economic drivers and regulations. “The visa issue is one that has placed a lot of pressure on recently retrenched expatriates when trying to find alternative employment or heading home. The Department of Naturalisation and Residency has implemented a law which will grant six-month renewable visa to those who invest in freehold property in the UAE.”

“While this is a positive move to assure potential investors, the six-month period is considered to be too limited a duration to be meaningful to many investors. It is thought the federal law should match the general residency law whereby investors will be eligible for a three-year residency visa provided they visited the emirate at least once every six months. This approach will appear to be far more appealing and enticing for investors,” said Alwadiya.

Gafur said: “Confidence-building measures at the federal and regulatory level is paramount in bringing back faith to the market and spur medium- to long-term investments into the country.”

“Fundamentally, the long-term success of an economy is influenced primarily by the potential of the economy to s
ustain itself on the basis of its inherent resources and the faith of internal and external stakeholders. 

“And this faith is determined by the strength of relevant regulatory systems that shape, manage and control various segments of industry that spur the economy, such as legal systems, banking and financial entities and industry bodies.”

Gafur said with substantially reduced market prices for properties and prevailing investor sentiment as the background, a planned and phased overhaul of visa regulations is critical to the long-term success of the emirate. 

“Visa regulation changes can have immediate and substantial effects on the long-term business and operational sentiment of the investing public and should be approached with extreme care. Ajman has come a long way in stamping its brand of investment potential, especially within the mid-segment of investors from South Asia and the United Kingdom. Unfortunately, this growth has been fraught with teething issues, compounded by the present economic downturn.

“The immediate elements that need to be looked into would be infrastructure – power requirements, for example – and further clarity in regulatory and legal frameworks, especially within the real estate sector,” he said.

Property Buyers Dissatisfied with Realty Brokers

Some 61 per cent of property buyers in the UAE are dissatisfied with the services provided by real estate agents in the market, according to a new study.

The research was conducted across the UAE with a focus on Dubai by real estate broker firm Harbor Real Estate, which talked with 178 property owners over a four-month period in a series of face-to-face interviews.

The research revealed consumers who bought properties in the past two years remained dissatisfied with the performance of real estate agents. “It all boils down to the servicing style of real estate agents, which has not been up to the satisfaction levels of the property buyers in UAE,” said Mohanad Alwadiya, Managing Director, Harbor Real Estate.

“Currently, it is still a buyer’s market and services from realty agents need to be of high quality,” he said.

Alwadiya said the Real Estate Regulatory Agency (Rera) had been proactive to ensure that real estate agents deliver quality service, but the real estate broker market continues to be immature.

The study said Harbor intended to serve as a barometre on service levels in the local real estate market.

“Participants evaluated property brokers according to knowledge and skills, ethics and behaviour, consultative ability, and empathy. The respondents were asked to rate their individual experiences on a five-point scale ranging from excellent to very poor. Of those interviewed, 61 per cent of respondents rated their brokers as either poor or very poor,” said the report.

Of those interviewed, 73 per cent had purchased their property prior to the recession – set as October 2008 – while the remainder had purchased their property after October 2008 (post-recession). About 23 per cent of those interviewed purchased within the last four months.

About 12 per cent of consumers who made their purchase prior to the recession stated that their experience was excellent or good.

In the post-recession period, that number fell to about 11 per cent, although satisfactory ratings improved from 25 per cent pre-recession to 31 per cent post-recession.

In the post-recession market, 58 per cent of respondents rated their experience as poor or very poor, bringing the two-year average of dissatisfied customers to 61 per cent. The buyers objected to the lack of agents’ knowledge, consultative ability and empathy.

Alwadiya said: “What we have here is an indicator of an industry which is still relatively immature. The level of proficiency in effective consultancy, based on sound knowledge of the market and an understanding of the buyer’s requirements, appears to be the main shortcoming. Buyers today have choice and are more knowledgeable about the market, and they seek advice from professionals that they feel they can trust. Unfortunately, in the majority of cases, consumers are left feeling disappointed.”

Harbor Real Estate is also monitoring its service-level performance against those of its affiliates.

“What we are seeing globally is a race for improvement. Realty has been under huge pressure due to the recession, and those who wish to thrive in the market will only do so by identifying and responding to the needs of clients,” it said.

Dubai Real Estate Recovery? V, W, U, L or √?

Interview with Mohanad Al Wadiya, Managing Director of Harbor Real Estate Brokerage

Mohanad Alwadiya is the Managing Director of Harbor Real Estate Brokerage, a real estate service provider in Dubai. As Managing Director of Harbor Real Estate Brokerage, Alwadiya is responsible for setting business direction and focus, directing all external and internal sales and marketing strategies for Harbor and its clients and producing the Harbor Report.

Alwadiya has over 12 years of strategic marketing and sales experience servicing global corporate clients. Formerly, Alwadiya was the Managing Director of Residencia Property Consultants, the Head of the Projects Marketing and Sales division for the global real estate arm of Dubai Holding and the Communications Director at Leo Burnett, Dubai. Alwadiya shared some of his thoughts on the recovery of the Dubai real estate market.

There are a lot of conflicting stories in the news about the likelihood of a recovery in the Dubai real estate industry. Where are we really?

You are right. There had been a lot of frenzied reporting … some may say speculation … as to the actual state of the Dubai property scene and where it is situated in terms of recovery. This has led to a lot of nervousness and confusion.

Reports vary, with some analysts claiming the industry has “bottomed out” and others stating that no real improvement can be expected for 18 months or more. The variance in opinion is so wide that now some analysts are critiquing and publicly disagreeing with other analysts’ suggestions as to where the industry is now and where it is heading! I believe that the market is in a phase of fragile stabilisation. The long-anticipated recovery cannot be claimed as yet despite indications through the second quarter of 2009 suggesting that the market had bottomed and that early signs of recovery may be evident.

The problem with many analysts’ views is that the breadth of considerations as to what will initiate and drive the recovery is too narrow in scope. Many observers tend to look at the real estate industry in isolation and not consider the effects of the global, regional and domestic economic performance on the Dubai real estate industry. We need to understand that the Dubai economy, and logically the Dubai real estate scene, is strongly linked to world economic events.

The pace and magnitude of Dubai’s economic recovery and its real estate industry will be largely dependent upon the global economic recovery. To gauge the primary driver of a Dubai economic recovery, we must take a global or macro view first. Consider the following schematic, which highlights the dependency of the UAE and Dubai’s economy on world economic health.

Much has changed over the last three months. We have seen the prevailing sentiment move from doom and dread to hope and optimism. This shift in sentiment has been fuelled by what some people see as being the early signs of a global economic recovery.

So, is the world economic situation improving?

Well, in some areas of the global economy, things have been looking a lot better, indicating the imminent start of a recovery.

There was a strong rebound in most financial markets during the second quarter; however, the beginning of July saw investor nervousness halt the growth on the back of poor news emanating in the US regarding unemployment.

Globally, governments have responded quickly and expansively in implementing monetary and fiscal policies to arrest the global economic decline. The positive effects of these actions implemented in the last quarter of 2008 and first quarter of 2009 started to be felt in the second quarter of 2009.

Economists in Japan, China, the US and even Europe had begun to talk about “green shoots”, or early signs that growth in those economies will start sometime early in the new year. The broad consensus is that these major economies will bottom out in the late third to early fourth quarters of 2009, despite investor nervousness being evident in early July.

Many of the actions and restructuring measures taken by companies to improve their cost structures and balance sheets in order to survive the recession have already been undertaken. In addition, the stronger companies in a wide variety of industries are looking towards strategic mergers or acquisitions which will result in entities which can weather the recessionary storm and be well-poised to take advantage of the imminent recovery. This form of industry rationalisation is healthy, as long as monopolies are not created.

In addition, the various business confidence indices which measure business sentiment around the world have also been on the rise, auguring well for the future.

As a result, stock markets around the world have risen significantly in the second quarter of this year. The generally held view is that movements in the stock market pre-empt economic growth by six to nine months, and therein lies one foundation for hope for many observers.

If you look at US markets, the Dow Jones Industrial Average has gained 27% since its March low. In China, the story is similar, with the Shanghai Composite Index showing a 47% gain since March 2 and the London FTSE gaining 19% since March 3.

The local bourse was also performing extremely well during that period. The Dubai Financial Market had risen 40% since its March low; however, the first week of July saw a sharp drop to pull gains back to a disappointing 15%. Overall, despite the volatility, which will be a feature of markets for the ensuing quarter, the overall improvement in all these financial indices indicates an improvement in confidence of those who are looking for investment growth opportunities, suggesting that a bottom to the world economic woes is somewhere in sight.

Meanwhile, the rise in oil prices had definitely stirred the hopes of many in the region. With oil prices on the rise and reaching around $70, governments around the region were looking much better placed to implement infrastructural spending in order to fuel economic growth. Oil slipped to around $66 in early July, however. If this price level is sustained, the budgeted infrastructural spending proposed by the regions’ governments should continue unhindered.

Of course, the downside to excessively high oil prices is that they may hinder global recovery and drive energy costs onto those economies that are heavily reliant on imported oil.

When will we see real recovery, not just the “green shoots” that everybody is talking about?

This is very hard to predict. You would have heard about different types of recoveries, specifically, V, W, U, L and square-root-shaped recoveries.

In his article of June 2, Will Swarts of The Wall Street Journal provided an excellent explanation of the different types of recoveries, using examples from US and Japanese historical economic performance.

So, what type of recovery would be most likely for the world and Dubai economies?

I believe that either a W-shaped or square-root-shaped recovery is the most likely candidate, but I am leaning towards the latter.

If one considers that the current “green shoots” of the recovery are being fuelled by the enormous amounts of stimulus money that governments around the world have pumped into economies, and that the positive effects of the stimulus packages will naturally be exhausted, then there is a strong likelihood that underlying fundamentals of major global economies will not have improved enough to ensure that the growth fuelled by the stimulus packages can be maintained. Put simply, the effect of the stimulus packages, while effective in arresting the slide of world economies and sparking some “green shoots”, is not sustainable. The fundamentals of economies must provide the impetus for future growth.

An example of this would be the effect of US unemployment and its implications for domestic US consumption. With an unemployment rate rising to 9% or 10%, the US economy will be deprived of one of its principal drivers, which is domestic consumption. If the effect of the stimulus packages introduced by the government wears off while domestic consumption is low due to high unemployment, economic growth would stall, causing a square-root-shaped recovery or even decline, resulting in a W-shaped recovery. Of course, this is just one example of an economic fundamental being depressed, but there are many others.

In addition, the world is likely to be a different place even after the recovery begins in earnest. The attitude towards debt financing is likely to be far more conservative by both investors and lenders. This recession has taught many players in the investment and finance space a painful lesson with regards to risk management.

I believe that the square-root-shaped recovery is more likely given the extent of co-operation, sharing and commitment to address the recession on a global scale. Never before have major industrialised nations combined forces, ideas and stood resolute to address what, at one stage, was shaping up to be a depression. In consideration of this unprecedented co-operation, I have confidence that once the economy begins to recover, that same shared resolve will not allow it to deteriorate into a W-shaped recovery.

So, what does the recovery shape mean for the Dubai real estate industry?

Obviously, everybody wants to see a V-shaped recovery. For the real estate industry, that would result in a rapid increase in the demand for all types of property. But it’s not going to happen. The previous real estate boom in Dubai was driven to a large extent by a rapidly expanding population, made up of speculators, genuine long-term investors and owner-occupiers. Overseas investment, some of it speculative, which was fuelled by favourable exchange rates and changes to property ownership rights, fuelled the growth further. This activity was supported by unhealthy levels of credit availability.

The recovery phase will need to be driven by fundamental and solid economic drivers, not speculation. Population growth, driven by an increase in commercial activity, will be the primary determinant of a real estate recovery as Dubai attracts new business entities, investors and owner-occupiers who have a long-term outlook to their participation in Dubai’s economy. The days of growth driven by speculation supported by questionable levels of credit availability will not be repeated. We are witnessing a major and much-needed step in the maturation of Dubai’s real estate industry and economy as a whole.

So, what type of recovery will the Dubai real estate industry see?

Well, once again, it is likely to be a W or a square root type of recovery. A lot depends on the recovery of the economy as a whole, but there are some factors within the industry itself which may inhibit its recovery regardless of the economy.

The issue of oversupply has received a lot of attention, with some commentators suggesting that property vacancy rates, currently estimated to be around 15%, could double in the industry by the end of 2010. While I don’t subscribe to that view, there is no doubt that the number of properties predicted to be released into the market over the next two years is a concern, as there are an estimated 70,000 new units being released in 2009 and 2010. If demand cannot be generated quickly enough as part of an overall stimulus strategy, then a W-shaped recovery becomes more likely.

We need to look at the supply situation in tandem with demand. It’s impossible to comment on one without considering the other.

The effect and magnitude of the oversupply issue on the performance of the market will be determined by a number of factors which will help generate demand for property going forward. These factors are as follows:

1. Population Growth Derived From Commerce

As stated above, Dubai’s population growth rate needs to increase. Estimates of population decline due to the recession have ranged from 8% to 20% spanning the years 2009 and 2010. Needless to say, whichever prediction proves to be the most accurate, the slide in population must be arrested.

The prime driver of population growth going forward will be commercial activity. Dubai needs to ensure that as the world economy starts to recover, it has positioned itself competitively as a place to do business. It is encouraging to see the government implement a number of initiatives to achieve this end. The first set of initiatives involves the freeze or reduction in the cost of fees and charges on business entities in Dubai. This is a positive step in ensuring that Dubai is a cost-competitive place to conduct business when compared to other regional centres.

The second initiative involves the Dubai Chamber of Commerce proposing an end to the current sponsorship system for foreign companies wishing to set up business in Dubai. The vision of having free entry for companies with few or no barriers is a grand one and, if approved by the Executive Council, will provide a major boost towards establishing Dubai as an accessible and cost-competitive place to do business.

2. Lifestyle Values

The cost of living in Dubai has been a concern for some time. With double-digit inflation in the period leading up to the recession along with spiralling rent costs, many expatriates or companies importing talent from overseas found living costs prohibitive.

While real estate sales prices and rents have fallen, much to the chagrin of investors, and inflation is less than half of what it was eight months ago, this phenomenon will be important in attracting renewed interest in the emirate and stimulating a higher level of activity in the real estate market. Already we are seeing people from neighbouring Sharjah and Abu Dhabi taking advantage of the current low prices to move to Dubai.

3. Real Estate Industry Management and Regulation

Dubai has come a long way with regards to regulating the real estate industry. While the efforts to protect rights, lift standards of professionalism and establish a transparent, credible and functional framework are to be applauded, there is still a long way to go before the industry can be said to be in the final stages of maturation. The Real Estate Regulatory Authority has been considering the viability of a number of projects and reports state that at least 27 projects will be cancelled. This form of oversight is a positive sign, as any rationalisation of developments which are currently being planned can only help alleviate any oversupply situation. It is hoped that a full, robust and decisive review will be completed and the necessary actions continue to be taken, as marginal or non-viable projects can only be considered as “toxic assets” to the industry and the overall economy.

In addition, the ongoing pursuit of transparency is paramount. One of the reasons for such diverse opinions regarding the true state of the industry is the dearth of reliable information and data. While some progress has been made, the industry is a long way from having centrally stored, accessible, reliable, upto- date and relevant information on which to base decisions.

4. Liquidity and Exchange Rates

Liquidity is starting to flow back into the market, but it needs to flow faster. With the Eibor at around 2.4% and many banks successfully increasing deposits, lenders are now in the best position in over eight months to start lending again. There has been some easing of LTV ratios by some banks and the longawaited Amlak/Tamweel merger is reportedly just around the corner. The resumption of business by this entity will help alleviate the shortage of credit available to many potential buyers who are in the market now. While many have focused on liquidity in the local market, Dubai can benefit greatly as the credit markets overseas also start to loosen up.

During times of economic hardship, investors typically seek shelter in a select number of commodities or currencies. The US dollar, despite the US economic financial meltdown, is one such currency. During the early part of the recession, this phenomenon drove the value of the US dollar, and therefore the UAE dirham, higher versus other global currencies. This made foreign investment in Dubai more expensive.

As the global economies gradually show signs of improvement, investors will convert their US dollars into other currencies to avail themselves of investment opportunities around the world. The resulting devaluation of the US dollar and, by association, the UAE dirham, increases the value available to investors from investing in the Dubai real estate scene.

5. Confidence

It was not long ago that Dubai was capturing the admiration and awe of the world. Unfortunately, the world view on Dubai has taken a turn for the worse and needs to be rebuilt.

There has been a disproportionate amount of negative press regarding Dubai since the economic crisis began and this will have damaged investor confidence in the emirate. The recent initiative to address the issue of “Brand Dubai” through the development and implementation of a global communications strategy to address incorrect or misleading assertions regarding Dubai is tremendously important. The success of this initiative will play a major role in accelerating the pace of Dubai’s recovery.

However, confidence needs to be developed in other areas as well. The visa issue is one that has placed a lot of pressure on recently retrenched expatriates when trying to find alternative employment or heading home. This will not be forgotten quickly and will certainly be a consideration of those who might consider making Dubai their long-term home.

From an investor point of view, the Department of Naturalization and Residency has implemented a law which will grant a six-month renewable visa to those who invest in freehold property in the UAE. While this is a positive move to instil confidence in potential investors, the six-month period is considered to be too limited in duration to be meaningful to many investors. It is thought that the federal law should match the Dubai law whereby investors were eligible for a three-year residency visa, provided they visited the emirate at least once every six months. This approach would appear to be far more appealing and enticing.

6. Tourism

A large part of Dubai’s success has been driven by an incredibly successful tourism industry. If one considers Dubai to be primarily a trade/commerce, services and tourism hub, the influx of tourists is vital to the overall health of the economy.

The tourism industry has been a beacon of success in the Dubai economy and plays an important role in introducing the emirate to potential investors and entrepreneurs as well as sun seekers.

7. Oil Prices

It will come as no surprise that the price of oil will help determine the health of the Gulf economies. Despite not being reliant on oil as such, Dubai, being part of the UAE federation, has and will continue to benefit from the massive revenues derived from oil. With oil prices expected to fluctuate in the range of $70 to $75 a barrel going forward, the Gulf economies can continue to acquire healthy levels of revenues to enable government investment in infrastructure without generating huge budgets deficits or accumulating debt. Also, at this level, it is not expected that oil would place undue pressure on recovering economies.

However, there is a catch. It would be disastrous if the price of oil should reach the unimaginable levels of 2008. If this were to happen, those economies which are reliant upon imported oil for their energy requirements would find economic recovery difficult to sustain. This could result in a W-shaped recovery for some of the largest economies in the world and likely effect the recovery of the world economy as a whole.

Dubai would suffer as a result of this, as its reliance on the economic activity of other economies would make it vulnerable to any downturns in trade or global commercial activity and, as we have already discussed, the Dubai real estate industry recovery would stall.

So, in summary, you are predicting a square-root-shaped recovery?

Yes. I believe that the world economy is on the road to a square-root-shaped recovery. I also believe that Dubai has the potential to benefit handsomely from that recovery.

The IMF has stated that the Gulf economies are best placed to surface from this recession. This should come as no surprise, as one thing the Gulf economies have done successfully over the last decade is to accumulate huge reserves of wealth which would serve them well during a recession. This has proven to be the case, as evidenced from the continued infrastructure spending by government authorities.

With regards to the Dubai real estate industry, there is lots of work to be done. In all likelihood, its recovery will lag the recovery of the overall economy; however, in consideration of the rampant, unsustainable growth which was being witnessed in 2008, this should come as no surprise.

It’s important to understand that the industry is not terminally ill. The industry is experiencing some serious growth pains, but will recover. I believe we will see a much improved level of activity in the later part of this year as the world economy strengthens, credit becomes more accessible and Dubai relaunches itself as a preferred place to do commerce and trade.

The current pent-up demand will flow into the market once lending starts again. Many people want to take the opportunity to own a family home or take advantage of the investment opportunities in the market today. The demand is there; it just needs some liquidity to enable the conversion of intention into transaction.

However, a word of caution. While I believe now is a good time to buy into Dubai, we cannot expect the monumental premiums of the past. Real estate is for the long-term thinker and, despite being subject to economic cycles, will always generate wealth as long as it’s considered and managed as a long-term investment.

To think any other way would be to ignore the hard lessons of the last 10 months.

Merger saga expected to continue

Lack of clarity leaves investors and shareholders anxious.

For many in the local real estate market,
mergers and acquisitions appear to be a
logical solution to stay afloat during the
global financial crisis. Opinion is divided
as to whether these moves will have a
positive — or negative — impact in the
short- and medium-term. Yet, it seems
clear that without these mergers and
acquisitions, the result would be a freeze
in financing facilities and diminishing
activity in the property sector, which
would have an adverse effect on the
overall economy.

Within the financial services sector,
the merger plays started as early as last
year. It began with Amlak and Tamweel
announcing their plans of coming together
to create an institution that would have
access to federal funds and strengthen the
country’s home finance marketplace.

When it was announced in
November last year, the possibility of
an Amlak-Tamweel joint venture gained
considerable media attention and
ratcheted up expectations.

In terms of property development,
we have seen similar plays within the
last 12 months. Dubai World, the portsto-
property conglomerate, recently
consolidated the management and
property operations of its subsidiaries,
including Leisurecorp, Dubai Maritime
City and the Dubai Multi Commodities
Centre. The property divisions of these
companies will now be run by Nakheel,
also part of the Dubai World portfolio

Rumours swirl around about a
possible alliance between Deyaar
Development and Union Properties,
stoked even higher by recent news about
the latter having liquidity problems and
losing its long-serving chief executive.

But, the most significant merger
possibility was thrown up quite recently,
with Dubai Holdings’ three real estate
arms — Dubai Properties, Tatweer, and
Sama Dubai — initiating the process to
cobble together an all-encompassing
marriage with Emaar.

Way to ward off dissolution

There is a growing consensus among
those involved in fine-tuning the process
that allowing healthy companies to
acquire those at risk of failing could
stabilise the economy and bolster
confidence in both the financial and
property sectors.

For some, merging with a partner that
has a strong balance-sheet is an essential
step in warding off dissolution. Other
spin-offs include leveraging economies
of scale and getting into stronger
negotiating positions with regard to
suppliers and contractors.

In an ideal context, mergers allow
companies to work together to achieve
long-term, strategic benefits by uniting
complementary businesses into a single,
self-sufficient and more successful
operation. When it comes to the
property sector, consolidated companies
have better control of the overall supply
introduced into the marketplace and the
quality of products and services offered.

Inheriting liabilities, debts

On the other hand, there are concerns
these mergers will place a heavy burden
on the stronger companies involved.
These partners are not just taking over
assets, but may end up inheriting large
liabilities and debts. Furthermore, the
mergers, once they are effected, are
likely to generate a lot of uncertainty
among investors and shareholders.
Investors might have to accept further
delays until these mergers are finalised.

Whatever the end result, the number of
mergers involving financial and property
organisations will only increase. For
the new entities formed thereafter, the
ability to provide prompt, transparent
and practical information could be the
benchmark for success or failure from the
public’s point of view.

The writer is the managing director of Harbor Real Estate

UAE housing market chasing ‘affordable assets’

Residential market activity in the UAE in the second quarter improved significantly over the previous period, driven by a flight to affordable assets, said a report.
Harbor Real Estate Brokerage, an integrated real estate service provider in Dubai, has released of the latest edition of The Harbor Report, which covers a range of the hottest real estate topics, including a special feature on the recovery of the real estate market.

Sales transactions in the UAE, especially in the latter part of the second quarter, increased when compared to rental transactions with middle to middle-lower income earners taking advantage of the new levels of affordability.

“This quarter, the Harbor Report will be focusing on the local market recovery,” said Mohanad Alwadiya, managing director of Harbor Real Estate Brokerage.
“We look at factors that are likely to drive the recovery and the influence of the global economic recovery as it impacts the local scene here in Dubai,” he added.
“Harbor’s results for the second quarter were promising. Not only did we see a 55 per cent increase in the number of viewings but we also saw sales transaction double.’’

Since April 2009 when the first Harbor Report was issued, it has already become well known for its ability to accurately portray industry developments. With in-depth analysis, insider views and trends, the report has already received positive feedback from industry professionals.
Although the report is primarily aimed at professionals in the real estate industry, it also provides valuable information for developers and contractors who want to keep abreast with the latest industry developments, said a statement.

“In our first Harbor Report, which was issued in April, the contents and subjects discussed included credit notes, mortgages and the impact of the global recession on Dubai. This quarter however, the report is focusing more on the initial stabilisation and eventual recovery of the real estate market,” added Alwadiya. – TradeArabia News Service

Improved second quarter real estate activity raises confidence of a recovery

Factors effecting Real Estate recovery detailed in latest edition of The Harbor Report Dubai, August 16, 2009: Harbor Real Estate Brokerage, an integrated Real Estate Service Provider in Dubai, has announced the release of the latest edition of The Harbor Report. The quarterly report covers a range of the hottest Real Estate topics, including a special feature on the recovery of the real estate market. In addition it will give an objective assessment of where Dubai’s Real Estate industry is at present and what are the latest trends in the industry that was highly affected by the economic crisis.The findings of the Harbor Report indicate that activity in the second quarter improved significantly over the previous period with the residential market in the UAE being driven by a flight to affordable assets. Sales transactions, especially in the latter part of the second quarter, increased when compared to rental transactions with middle to middle-lower income earners taking advantage of the new levels of affordability.Managing Director, of Harbor Real Estate Brokerage, Mohanad Alwadiya said:’This quarter, the Harbor Report will be focusing on the local market recovery. We look at factors that are likely to drive the recovery and the influence of the global economic recovery as it impacts the local scene here in Dubai. Harbor’s results for the second quarter were promising. Not only did we see a 55% increase in the number of viewings but we also saw sales transaction double.’Since April 2009 when the first Harbor Report was issued, it has already become well known for its ability to accurately portray industry developments. With in-depth analysis, insider views and trends, the report has already received positive feedback from industry professionals. Although the report is primarily aimed at professionals in the real estate industry, it also provides valuable information for developers and contractors who want to keep abreast with the latest industry developments.

“In our first Harbor Report, which was issued in April 09, the contents and subjects discussed included credit notes, mortgages and the impact of the global recession on Dubai. This quarter however, the report is focusing more on the initial stabilization and eventual recovery of the real estate market,” added Alwadiya.
The Harbor Report was created at the beginning of 2009 by Mohanad Alwadiya, MD of Harbor Real Estate Brokerage and Editor in Chief. The Q2 report can be downloaded on the Harbor Real Estate Brokerage website. Visit www.harbordubai.com for more information.

About Harbor Real Estate Brokerage:
Harbor Real Estate Brokerage is a fully integrated real estate service provider based in Dubai and part of an established world class group of real estate companies since 2001. With a strong reputation and a veteran team with over 15 years of experience in the industry, Harbor Real Estate provides Real Estate Research Services, Integrated Sales & Marketing Services, Sales and Lead Conversion Management Services and Real Estate Investment Portfolio Management Services.
Having served over 5,000 satisfied customers, Harbor has an extensive clientele base that consists of public and private entities, major developers, private and institutional investors and owner-occupiers..
Harbor Real Estate brokerage has a dedicated team of realtors and consultants who are renowned for their expertise, high level of professionalism and insight into local and international markets. The company is committed to providing its customers world class service and innovative real estate solutionsIn 2009, Harbor Real Estate Brokerage established a quarterly real estate report “The Harbor Report”. This candid report covers the latest news, developments and trends in the real estate industry with an in-depth analysis of the latest topics and current affairs.