Lahore Real Estate Forum

Start NEW Topic Or Post Advertisment

                                                          
 
Back to Forum |

Worried about Dubai,

(49206)
   Jameel
Wednesday, November 12, 2008 08:00 PM 
Reply: >
Emmar and other realesate Companies as well as their Finacier like Amlak etc are in worst Crisis, and their Prices are lowest ever, abut 70% loss in 10 Moths. Almost one Months back Ruler of Dubai issued a Decree that Emmar can buy back its share as much as they want, They put a big news in Gulf news that Emmar plans to buy back its shares as it was Grossly undervalued [Sometime in Sept], Inspite of that all price is coming Down, what does it means Emaar is Cash stripped? and is unable to buy back??
Mashreq bank have heavily invested in Emaar, few weeks Bank they issued a bank offering Linked to Emmar share.
The Condition was You Fix 1/2 Million in Mashreq bank and keep it for 3 Months Bank will give you 10% profit if Value of Emmar share is same or more after 3 Months. Otherwise Bank will give you Emmar shares in place of cash, Ever since offer came Emmar share has gone down 40%, I Did not invest but now I think it was an effort of Meshreq Bank to offLoad its huge Sharres of Emmar. Will other experts/insiders of DFM shed Light
Why i am taking of Emmar it is heart of DFM and life line of all realestate of Dubai. Realestae, mortgage Companies and Banks make about 95% of DFM and all there are badly linked. As I pointed few moths earlier [having discussion with safwan etc] that investors of Dubai and Ajman realestae will be able to bring Back only 1/3 of their Capital to pakistan and 2/3 will be lost in this crisis, Now the things 100% proving themselves
alpha replied on Wednesday, November 12, 2008 09:32 PM 

Dear Jameel Sahab
Share buy-back usually have signalling motives. Looks like you just wrote Mashreq bank a Put option, and bought a 10% Call option.
regards
stn replied on Thursday, November 13, 2008 04:29 AM 

Emaar offers flexible payment plan for buyers

Dubai: Emaar Properties yesterday said it has unveiled a flexible payment scheme aimed at making it easier for customers to purchase property in Dubai, as sales across Dubai's real estate has come to a near halt.

"With the innovative 'To Own' scheme, Emaar is initially rolling out two programmes - 'Plan to Own' and 'Rent to Own,' both of which will enable customers to own property under more affordable terms within Emaar's world-class master-planned communities in Dubai," the company said in a statement.

The scheme reflects Emaar's commitment to extend further support to customers and be a stronger facilitator of property purchases. Domestic demand for real estate continues to outstrip supply in Dubai. Emaar's new programmes build further on the real demand for property, which has now positively shifted towards an end-user market.

The "Plan to Own" programme will offer 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.

As per the "Plan to Own" programme, Emaar will help potential home-owners and commercial customers who can qualify for a mortgage through a bank to bridge the gap by extending their payment plans. Emaar's extended payment plan of up to 25 per cent of the property value will be paid back by the customer in single annual installments for five years, after moving into their new homes. The first payment will begin only one year after receiving their property.

With the "Rent to Own" programme, tenants can adjust 100 per cent of the first year's rents as home finance if they decide to purchase the property within ten months of living in the home. It gives them the unique opportunity to rent, move in, assess the quality of the property and make an informed property purchase decision. The property price will remain fixed for a period of one year, and customers will have the option of acquiring the "Plan to Own" programme if they decide to buy. During the rent period, tenants will have the first right to buy the property.

© Gulf News 2008. All rights reserved.
Habib replied on Thursday, November 13, 2008 05:47 AM 

These things are not going to work anymore, the reason is There are no end users if they dont Give visa facility, And that is beyond doubt now there will be no visa for sure linked to the property. If i be realistic I tell you proportion of Byuers in Gulf
1. 65% locals who had lots of money and never needed homes as they have Govt Build good villas already, their reason of investing in property is simply that they had lots of money and they were increasing chances to increase it.
2 15% Paksiatni and Indian which had been Lower end buers for the properties mostly in ajamn, most about 90% bought with the Promise of visa and 50% did not want to live but wanted quick sell.
3. 15% mixed nationalities mostly from easteren Europe when they saw that Euro is very expensive here they though it is good country to live [ Now Euro is back lost about 25%], that factor is also gone.
major Problems are
1. less end user
2. No water and energy for the projects
3. Decreasing oil price hence decreasing jobs
4. To much over speculation both in realestate Price and rents

Duabi Govt is trying its best by to support but it does not have cash reserves or oil [i dont know how much Abu Dhabi is ready to Contribute] at least they are not ready in energy sector.
I think most of these projects will be rearrange to low cost projects and Visa facility has to be reinstated if End user market is the Traget.
>