Premium Essay

Dubai Real Estate Market

In: Business and Management

Submitted By kneeraj
Words 507
Pages 3
Dubai Real Estate Market- Steeper the growth faster the decline
I still remember the difficulties I faced in finding a house for rent in Sharjah (one of the Emirates of UAE and a neighbouring city of Dubai) in 2007. The rent prices were shooting every day and real estate agents were ecstatic to tell this news to the tenants. I was really contemplating my decision to move to a place where cost of living was rising every day.
When I saw Dubai first time, I was really amazed by the development of the city. It takes a lot of Will power to develop a city like Dubai in desert. The plan of action for development of Dubai was to initially invest in its infrastructure and set a platform for further investment. Dubai has given favourable business condition including tax free environment to invite foreign investment and foster its growth. From 2002 to 2008 the demand for real estate increased because of growth in per capita income, increase in foreign investment, easier availability of credit from bank and on a perception that price of unit will rise further seeing the past trend. These factors shifted the demand curve of Real estate to the right. During the same period, supply was inelastic until increase in number of suppliers into the market and ease of capital availability for construction projects. Nevertheless increase in supply never matched the increase in demand and supply shortage further boosted the price. At each price there were enough buyers available in the market and increase in price was not affecting the demand. The demand of real estate became price Inelastic.
But not everything went as per plan for Dubai. Since end of 2008, collapse of Lehman brothers and subsequent global financial crisis severely weakened economic activity in Dubai. GFC caused massive cut in foreign investment which resulted in loss in economic activity. As a result jobs have been cut…...

Similar Documents

Premium Essay

Real Estate Prospects in Dubai

...large and established firms should pursue after they have achieved success in its domestic market or should entrepreneurs think about international markets 'right of the bat?' which sorts of products are more amenable to going international by small and new firms?" Entrepreneurs should think about the international market as “right of the bat”. We are planning to expand our business in Dubai as real estate market is growing there presently. Entrepreneurs should think about the international market as “right of the bat”. But before going internationally one should consider these following factors: Factor 1: Get company-wide commitment. Every employee should be a vital member of your international team, from the executive suite to customer service through engineering, purchasing, production and shipping. You're all in it for the long haul. Factor 2: Define your business plan for accessing global markets. An international business plan is important in order to define your company's present status and internal goals and commitment, but it's also necessary if you plan to measure your results. Factor 3: Determine how much you can afford to invest in your international expansion efforts. Will it be based on ten percent of your domestic business profits or on a pay-as-you-can-afford process? Factor 4: Plan at least a two-year lead-time for world market penetration. It takes time and patience to build a great, enduring global......

Words: 2859 - Pages: 12

Premium Essay

Real Estate

...ANALYSIS OF REAL ESTATE SECTOR IN INDIA REPORT SUBMITTED TO Dr. Dennis Raj Kumar Submitted by (GROUP-9) Lavanya Sriharshini Vinod Varun Ashok P Manju harsha Pramit CONTENTS CHAPTER NO. | CHAPTER NAME | PAGE NO. | | ABSTRACT | 3 | 1 | INTRODUCTION | 4 | 2 | MARKET STRUCTURE | 6 | 3 | ANALYSIS OF INDIAN REAL ESTATE IN HOUSING SECTOR | 11 | 4 | PRICING STRATEGIES | 16 | 5 | ADVERTISING STRATEGIES | 19 | 6 | FINANCIAL ANALYSIS OF INDIAN REAL ESTATE COMPANIES | 21 | 7 | FUTURE OUTLOOK OF REAL ESTATE | 32 | | CONCLUSION | 35 | | REFERENCES | 36 | ABSTRACT EXECUTIVE SUMMARY: Real estate sector in India is assumed greater heights with the labor migration, liberalization of economy which led to raise for commercial and housing space.2012 was very sluggish year in terms of growth where GDP contribution of real estate declined from 10.6% to 6.5% due to raise in input cost, high lending rates which impacted sales as a result of inflation. Real estate sector is described as cyclic moments in terms of price over a period of time which caused fluctuations in commercial and residential markets. This resulted in change in economic policies of Indian market environment. The change in macro-economic factors such as GDP, employment rate, population growth, House hold disposal income, stock market values, Price to income ratio, Net rental yield, Household debt service ratio, interest rate / mortgage rate, demand......

Words: 8860 - Pages: 36

Premium Essay

Real Estate

...Effects of The European Debt Crisis on the German Real Estate Market Hiermit versichere ich die vorliegende Arbeit allein und nur mit den angegebenen Hilfsmitteln angefertigt zu haben. Der Veröffentlichung der Bachelorarbeit in der Bibliothek der Hochschule Aschaffenburg wird zugestimmt. Aschaffenburg, den 28.02.2013 Effects of the European Debt Crisis on the German Real Estate Market Bachelorarbeit von Sebastian Stollhof 28.02.2013 Effects of The European Debt Crisis on the German Real Estate Market Autor: Sebastian Stollhof An der Bergleite 3 67806 Rockenhausen Erstprüfer: Prof. Dr. Paschedag HOCHSCHULE ASCHAFFENBURG FAKULTÄT WIRTSCHAFT UND RECHT WÜRZBURGER STRASSE 45 D-63743 ASCHAFFENBURG Table of Content TABLE OF EXHIBITS LIST OF ABBREVIATIONS 1 EMERGENCE OF THE DEBT CRISIS 1.1 Macroeconomic problems 1.1.1 The imbalance of public authorities 1.1.2 Strongly diverging current account balances 1.1.3 Strongly diverging price- and wage developments 1.2 Specific problems within the monetary union VIII IX 1 1 1 5 10 12 1.2.1 Interest rate policy of the European Central Bank (ECB) 12 1.2.2 Membership within the EMU increases insolvency risk for states 1.2.3 National fiscal policy versus central monetary policy 2 GERMAN HOUSING MARKET – PRICE BUBBLE OR SAFE HAVEN? 2.1 Definition of price bubbles 2.2 Explanatory approaches for real estate bubbles 2.2.1 Macroeconomic factors 2.2.2 Institutional explanatory approaches 2.2.3 Behaviour-based......

Words: 18935 - Pages: 76

Premium Essay

Real Estate

...COMPETITION COMMISSION OF INDIA A REVIEW OF THE COMPETITION ISSUES IN THE REAL ESTATE SECTOR: AN ANALYSIS OF THE POSITION POST DLF CASE INTERNSHIP REPORT DECEMBER 2012 SUBMITTED BY: Kirti Dashora, IV Year, Gujarat National Law University (GNLU), Gandhinagar A REVIEW OF THE COMPETITION ISSUES IN THE REAL ESTATE SECTOR: AN ANALYSIS OF THE POSITION POST DLF CASE ACKNOWLEDGEMENTS The successful completion of this project could not have been completed without the valuable guidance and insights of many people. I would like to thank Mr. Yogender Chaudhary, Adviser (Law) for guiding me throughout my internship period. I would also like to thank Ms. Bhawna Gulati, Deputy Director (Law) for providing me helpful suggestions regarding the project. I also thank all the officers in the Commission who provided knowledge of the working of the Commission during the rotation exercise. The library staff also provided help whenever it was required. Page 2 A REVIEW OF THE COMPETITION ISSUES IN THE REAL ESTATE SECTOR: AN ANALYSIS OF THE POSITION POST DLF CASE TABLE OF CONTENTS ABSTRACT…………………………………………………………………………………5 OVERVIEW OF THE REAL ESTATE SECTOR IN INDIA…………………………..….6 Regulation of the Sector………………………………………………………..……7 The Real Estate (Regulation and Development) Bill, 2011………………………....7 ABUSE OF DOMINANCE IN THE REAL ESTATE SECTOR……………………..……9 Relevant Market…………………………………………………………………..…9 Assessment of dominance………………………………………………………..….9 Abuse of......

Words: 10071 - Pages: 41

Premium Essay

Real Estate

...Relationship between Real Estate and Financial Sectors in Dubai Economy Dr. Eisa Abdelgalil Data Management and Research Department Table of Contents Table of Contents............................................................................................................i ‫......................................................................................................................ﻣﻠﺨﺺ ﺗﻨﻔﻴﺬي‬ii Executive Summary ..................................................................................................... iii 1. Introduction................................................................................................................1 1.1 Background ..........................................................................................................1 1.2 Objective ..............................................................................................................1 1.3 Research questions...............................................................................................1 1.4 Methodology and data..........................................................................................2 1.5 Outline of the study..............................................................................................2 2. Dynamic of Real Estate Market.................................................................................3 3. Impact of Real Estate on Financial Institutions ........................................................

Words: 6149 - Pages: 25

Premium Essay

Real Estate Market in New Zealand

...The real estate market in New Zealand has been showing signs of major growth in recent times. Major cities such as Auckland and Christchurch have been major contributors to this boom. In these two cities real estate prices have seen a major rise. In Auckland, the real estate prices have increased by approximately 17 percent. In Christchurch real estate prices have also been on the increase significantly though not as high as Auckland. Christchurch has seen a rise in housing prices by 8 percent over the last 12 months. Both of these two cities are major players in the New Zealand real estate market. When combined, both cities represent about half of all the real estate sales for New Zealand. There seems to be no end in sight for this real estate explosion. In fact, even in the face of the introduction of limits on Reserve Bank mortgage loans the real estate market has shown no significant signs of slowing down. Housing prices have continued to increase consistently since March. This is purported in the findings of leading real estate firm Barfoot and Thompson. For September, the median sales price for a home was $600,000. This highlights an improvement of $38,500 more than the previous month. Interestingly, the average cost for a home in the month of September was $657,912. This represents growth of approximately a little over $10,000. This recent real estate boom means that it would be an extremely fruitful endeavor for anyone wanting to enter real estate as a career.......

Words: 634 - Pages: 3

Premium Essay

China's Real Estate Market

...Index of Contents 1. Definition Real Estate 2 2. Chinese real estate market 2 2.1 overwiev about the chinese real estate market
 2 2.2 chinese real estate market
in the broader economic context 3 3. China’s long-term Real Estate Fundamentals 4 3.1 strong gdp growth 4 3.2 rural migration to cities
 4 3.3 rising middle class and strong upgrade demand 5 3.4 300 million new households in past two decades 6 3.5 limited land supply 6 4. overheating real estate market in the short-term 6 5. government steps in with tough real estate policies 9 5.1 significant increase in land supply and focus on economic housing 9 5.2 downpayment ratios and mortgage rates 9 5.3 Loan restrictions to developers 10 6. summary 10 References 11 1. Definition Real Estate A piece of land, including the air above it and the ground below it, and any buildings or structures on it. Real estate can include business and/or residential properties, and are generally sold either by a relator or directly by the individual who owns the property. In most......

Words: 3453 - Pages: 14

Premium Essay

Cadim: the China and India Real Estate Market Entry Decisions

...Cadim: The China and India Real Estate Market Entry Decisions I. INTRODUCTION Cadim is a real estate division of Caisse de Depot et Placement du Quebec (Caisse), Canada’s largest pension fund management firm. Caisse is the largest institutional investor in Canada, overseeing more than $245 billion in assets and carrying out more than $12 billion in transactions daily. Cadim is one of Caisse’s three real estate divisions comprising around 6.23% of Caisses portfolio ($15.3 billion). Cadim focuses on residential and hotel markets, while the other two real estate arms focus primarily on shopping malls and business. Currently Richard Dansereau, Cadim’s Chief Operating Officer is in the process of deciding whether or not to move in to the India and China real estate markets. This case study will review the key issues, the general environment of India and China, Cadim SWOT, alternatives to moving into India and China and will conclude with our recommended course of action. II. KEY ISSUES Richard Dansereau, Cadim’s Chief Operating Officer has been tasked with making the final decision whether to enter real estate markets in India and China. Cadim has been forced to look toward external markets due to the average risk- adjusted return of real estate in their current markers, North America, averaging considerably below Cadim’s internal required return......

Words: 1597 - Pages: 7

Premium Essay

Real Estate

...Chapter 13 key terms: Armin Hadziomerovic Acceleration Clause- A contract provision that allows a lender to require a borrower to repay all or part of an outstanding loan if certain requirements are not met. Ad Valorem Taxes-is a tax based on the value of real estate or personal property. It is typically imposed at the time of a transaction, as in the case of a sales tax or value-added tax (VAT). Assessment-the evaluation or estimation of the nature, quality, or ability of someone or something. Assignment of Rents Clause- is a provision in a deed of trust or mortgage. Bearer- a person who presents a check or other order to pay money. Bona Fide Purchaser for Value- referred to more completely as a bona fide purchaser for value without notice – is a term used in the law of real property and personal property to refer to an innocent party who purchases property without notice of any other party's claim to the title of that property. Broker Lien- a right to property or payment that a broker has if the buyer does not pay the money owed to the broker for a sale: Collateral- something pledged as security for repayment of a loan, to be forfeited in the event of a default. Contractor- a person or company that undertakes a contract to provide materials or labor to perform a service or do a job. Default Clause- a failure to act, esp. a failure to meet a financial obligation or to appear in a court of law at a time specified Deficiency Judgment- is an unsecured money......

Words: 1857 - Pages: 8

Premium Essay

Real Estate Capital Markets

... Real Estate Capital Markets –MBA 2015 Homework Assignments #2 I_TBI | I_GB | I_SP500 | 2.6% | 1.7% | 1.8% | * סטטיסטיקה 1. מצורף נספח עם חישוב תשואות רבעונית. 2. ממוצע: I_TBI | I_GB | I_SP500 | 5.7% | 2.3% | 7.5% | 3. סטית תקן:   | I_TBI | I_GB | I_SP500 | I_TBI | 0.33% | 0.01% | 0.06% | I_GB | 0.01% | 0.05% | -0.04% | I_SP500 | 0.06% | -0.04% | 0.56% | 4. מטריצת var-cov: 5. מטריצת קורלציות:   | I_TBI | I_GB | I_SP500 | I_TBI | 1 | 0.10 | 0.14 | I_GB | 0.10 | 1 | -0.21 | I_SP500 | 0.14 | -0.21 | 1 | * חזית היעילות מניות ואג"ח בלבד: סטית תקן תיק | ממוצע תיק | אחוזי החזקה | 7.47 | 1.80 | Ws= | 100% | Wgb= | 0% | 6.68 | 1.78 | Ws= | 90% | Wgb= | 10% | 5.89 | 1.77 | Ws= | 80% | Wgb= | 20% | 5.12 | 1.75 | Ws= | 70% | Wgb= | 30% | 4.38 | 1.74 | Ws= | 60% | Wgb= | 40% | 3.66 | 1.73 | Ws= | 50% | Wgb= | 50% | 3.01 | 1.71 | Ws= | 40% | Wgb= | 60% | 2.47 | 1.70 | Ws= | 30% | Wgb= | 70% | 2.11 | 1.68 | Ws= | 20% | Wgb= | 80% | 2.06 | 1.67 | Ws= | 10% | Wgb= | 90% | 2.32 | 1.65 | Ws= | 0% | Wgb= | 100% | * חזית היעילות מניות ונדלן בלבד: סטית תקן תיק | ממוצע תיק | אחוזי החזקה | 5.72 | 2.64 | Ws= | 0% | Wtb= | 100% | 5.30 | 2.55 | Ws= | 10% | Wtb= | 90% | 5.01 | 2.47 | Ws= | 20% | Wtb= | 80% | ...

Words: 779 - Pages: 4

Premium Essay

Real Estate

...CHAPTER 1 THE NATURE OF REAL ESTATE AND REAL ESTATE MARKETS ------------------------------------------------- Test Problems 1. A market where tenants negotiate rent and other terms with property owners or their managers is referred to as a: b. User market 2. The market in which required rates of return on available investment opportunities are determined is referred to as the: d. Capital market 3. The actions of local, state, and federal governments affect real estate values d. All of the above 4. Approximately what portion of U.S. households own their own home? b. Approximately two-thirds 5. Of the following asset categories, which class has the greatest aggregate market value? d. Nongovernment real estate 6. Storm water drainage systems are best described as: b. Improvements to the land 7. What is the single largest asset category, in terms of value, in the portfolio of the typical U.S. household? a. Housing 8. Real estate markets differ from other asset classes by having all of the following characteristics except: d. Homogeneous product 9. Which of the following is not important to the location of commercial properties? c. Access to schools 10. Which of the following attributes of a home are the most difficult to observe and value? c. location attributes ------------------------------------------------- Study Questions 1. The term real estate can be used in three fundamental ways. List......

Words: 13860 - Pages: 56

Premium Essay

Chinese Real Estate Market

...China Real Estate Market Cools Down The article “China Real Estate Market Slumps In Early September” I found on capitalvue.com briefly describes in early September, housing price of some metropolitans, especially Shanghai, Beijing has declined sharply and the units have been traded declined significantly as well. For instance, new home transaction in the first 12-day period in Beijing in September is only 135 units, which is the lowest number since February. This current situation is really surprising and confusing by contrasting to high transaction price and units in the past year. The reason why I choose China real estate market rather than state of Washington is because I am from China, and as I graduate in the future, those metropolitans might be where I start my new career and life. As a finance major student, Shanghai and Beijing are two economic centers of China, so these places are my dream places to work and live. It is necessary for me to do research on real estate research on these cities. According to this report, the main factors that cause this slump are the demand of new homes in these cities went down, while price level kept still. From chapter 14 of our textbook, the demand curve is downward sloping that indicates that decreasing demand leads to increased prices. In other words, people desire fewer houses at higher price than at lower prices. In the basic supply and demand model, once the demand curve is shifted to the left because of some reasons, such...

Words: 1150 - Pages: 5

Premium Essay

Real Estate

...TRAINING REPORT ON “Growth of Real Estate Sector with in 5years” A case of Corporate Real Estate Solutions Submitted to MAHARSHI DAYANAD UNIVERSITY, ROHTAK In partial fulfillment of the requirements For the award of the degree of MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED) (II SEMESTER) Submitted by: Name: Alok Kumar Upadhayay Regn. No. Roll.No. DAV INSTITUTE OF MANAGEMENT (ELC CODE: 080923013) NH-3, NIT, FARIDABAD. JULY 2011 DECLARATION I hereby declare that the Training Report conducted at Corporate Real Estate Solutions,Delhi. Under the guidance of (Ms. Aakrity) Submitted in Partial fulfillment of the requirements for the Degree of MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO MAHARSHI DAYANAND UNIVERSITY, ROHTAK is my original work and the same has not been submitted for the award of any other Degree /diploma /fellowship or other similar titles or prizes. Place: Date: Alok Kumar Upadhayay Regn.No: Roll No. 2 ACKNOWLEDGEMENT First and foremost, I extend my deepest thanks to my mentor and guide Mr. Vishal Srivastava, Director – Corporate Real Estate Solutions, for giving me this opportunity to work in such a prestigious organization as well as for giving me a wonderful thesis. Without his constant guidance and feedback, I would have never been able to complete the training, I did. I am thankful to Ms. Aakrity, whose consistent support and cooperation showed the way towards the successful completion of the......

Words: 15995 - Pages: 64

Premium Essay

Real Estate

...subject area i.e. the impact of middle class on the real estate sector. The chapter links to the Research Objectives and contains secondary analysis and descriptions, which may provide a platform for later evaluation. According to a research by Deutsche Bank, World Bank, McKinsey and CNN- IBN(Sources should be with year example So Deutsche Bank,(Year) ), the total Indian middle class ranges from 300 million to approximately 360 million people; this comprises less than 30 percent of the total population of 1.2 billion (Please refer Chart 1 below). For multi-national corporations and domestic real estate companies, the middle class in India thus presents significant business opportunities. Over the last several years, the overall growth in the real estate sector has burgeoned and this explosion is primarily due to the aspirations of the lower middle, middle and upper middle class of India. Apart from this a whole new range of investment options in the real estate sector has increasingly gaining acceptance. However, keeping in mind the exposure and increasing needs and desires of the middle class, not many significant efforts have been made towards educating the masses. Dire improvements are needed to match the needs of the growing middle class and educate the masses about the real estate sector, which primarily is an unorganized sector. In order to ensure that the growing middle class integrates and understands well about the real estate, the right education has to be on......

Words: 3235 - Pages: 13

Free Essay

Real Estate

...Fin345 Session 2 Why Study Real Estate? Part 1 – Present Economic Considerations Demographics shaping your future and the future of real estate 2 Housekeeping Items 1. Seating Charts 2. Finance 336 and WA. State R.E. licensure • RE Fundamentals 60 hrs. (FIN 345=60 + FIN 346=15) • RE Practices 30 hours available on line from: • Rockwell ceshop proSchools and many more • Cost for proschools $199 • Exam prep. tests usually run around $99 • Pass broker exam • Fingerprinting 3 Monday’s Homework Assignment BOOK - Read Chapter 1  Question – Labor Stats. 1. Define U-3 and U-6 - One or two sentence hint: (http://www.bls.gov/lau/stalt.htm) 2. Find the U-3 and U-6 Percentages for Washington State 4 Today’s Topics The Economy – effects upon, and from, R.E. – Demographics (for whom) – Employment (why is this important to R.E.?) – Age cohorts (what effect could this have upon R.E.?) – The R.E. market changes -- but -- it never goes away – R.E. related investing -- knowing where to look and what to look for (for you and your clients) 5 Unemployment Figures A Closer Look 6 Employment Changes Over Time Animated Unemployment Map – Used with permission of LaToya Egwuekwe 7 Discussion of U-3 and U-6 figures • • • • • • • What figure do we hear about on the news? How does the BLS obtain these numbers? As students, are you in the labor force? What does U-3 represent? What does U-6 represent? Is U-6 all the......

Words: 730 - Pages: 3