DFM Doldrums
Today, the DFM only traded about €14.6 million. Last November, a typical day was more than €450 million.
Emaar, one of the main, publicly traded property developers, and Amlak, one of the main mortgage lenders, comprised 55% of total volume.
Emaar traded about 2 million shares today, and some investors want to sell 1.6 million shares tomorrow.
If they succeed in getting their asking price, that will be a slight increase over today's last trade, but the volume on offer looks like a rather firm resistance to a big upward movement. And the highest offer to purchase Emaar consists of just 2,000 shares (although there could be a huge, invisible offer at a slightly lower price).
The level of the DFM, obviously, depends heavily on what properties Emaar will be able to sell in the UAE, and how much Amlak can make loaning buyers the money.
And Farook, a realtor, is predicting a property collapse.
Back in 1999, my apartment building had to lower rents by 10%, as it was mostly vacant. Since then, rents have more than doubled, and today there is a waiting list of prospective tenants. Will 1999 repeat?
But if my rental property is completely full, one commenter on this blog wrote that, in the freehold areas, most are empty. They were apparently purchased by investors who are just hanging on, hoping for further price increases, leaving the property vacant in order to get a better price. Of course, there are no official statistics, so there is no way of checking if the commenter is correct.
In addition, many more properties are to be completed in 2007 and 2008.
Obviously, if rents collapse, so will prices. Then Emaar may have trouble continuing its remarkable growth of profits, and the DFM will have little support.
On the other hand, if the US$70+ oil continues to bring in more 'temporary migrant' professional workers at the current rate, they will need places to live, and things could turn back up.
Emaar, one of the main, publicly traded property developers, and Amlak, one of the main mortgage lenders, comprised 55% of total volume.
Emaar traded about 2 million shares today, and some investors want to sell 1.6 million shares tomorrow.
If they succeed in getting their asking price, that will be a slight increase over today's last trade, but the volume on offer looks like a rather firm resistance to a big upward movement. And the highest offer to purchase Emaar consists of just 2,000 shares (although there could be a huge, invisible offer at a slightly lower price).
The level of the DFM, obviously, depends heavily on what properties Emaar will be able to sell in the UAE, and how much Amlak can make loaning buyers the money.
And Farook, a realtor, is predicting a property collapse.
Back in 1999, my apartment building had to lower rents by 10%, as it was mostly vacant. Since then, rents have more than doubled, and today there is a waiting list of prospective tenants. Will 1999 repeat?
But if my rental property is completely full, one commenter on this blog wrote that, in the freehold areas, most are empty. They were apparently purchased by investors who are just hanging on, hoping for further price increases, leaving the property vacant in order to get a better price. Of course, there are no official statistics, so there is no way of checking if the commenter is correct.
In addition, many more properties are to be completed in 2007 and 2008.
Obviously, if rents collapse, so will prices. Then Emaar may have trouble continuing its remarkable growth of profits, and the DFM will have little support.
On the other hand, if the US$70+ oil continues to bring in more 'temporary migrant' professional workers at the current rate, they will need places to live, and things could turn back up.
posted by Dubai@Random at 4:48 pm
4 Comments:
You can check by coming down to the Marina on any given night, staring up at the completed towers and counting the number of apartments with lights on. Then you can wander through the parking garages and count the number of vacant carparks.
When you live in an area like this, you get to know which apartments and villas are occupied and which are vacant.
And of course, you'll never get official figures, because all properties are 100% sold off the plans 10 minutes after they go on sale!
btw - did you know that you're famous?
You're quoted in Gulf News!
Tips for Being a Successful Landlord
In today’s apartment rental market there are several things that are “must do’s” for becoming a successful landlord. The reason you’re playing the real estate rental game is to have the check in your mailbox on the first of the month, right? Here are a few tips that can help you to achieve this with as little aggravation and frustration possible.
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