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Developers need to act to ease mortgage crisis - Damac chief
by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 14 June 2009
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Results 1 to 12 of 12
Posted on Thursday, 16 July 2009
Developers mortification
Posted by Re.N.U.,LLC at 00:05 UAE time
Where is the mortification for developers? With this being a short-term loan and property not selling and developers unable to continue pumping funds into these projects the result is a bank forclosure and an unfinish project sitting.
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Posted on Tuesday, 16 June 2009
Stable Policies more important
Posted by Property Guru at 10:18 UAE time
While the mortgage is an important aspect, currently the inconsistent and non-visionery visa policies are making property owners more nervous than absense of mortgage.
Banks were over exposed. They are doing the ratio balancing. The moment they are comfortable, they will and have to lend.
But how can you lend when your borrower is due to exit the country every six months.
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Posted on Sunday, 14 June 2009
realistic real estate and commitments
Posted by danny-m at 00:31 UAE time
think, what is the right price ? and what was market prices ? how is it possible prices could not crash ? what do the govt lose to give visa against property,! also after charging regular fees, dont they understand any one lives anywhere gives something to the place where they lives.
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Go Back to Basics
Posted by AVH at 00:19 UAE time
Well sir, banks are businesses like any other, and looking to profit. With defaults piling up, they cannot be expected to continue pumping in unlimited sums of money to support developments. Forget about investor confidence. Try to look at the basics. Here's something to start off with:
1. Please differenciate between investors and users. Properties are NOT shares traded by investors on the stock market though that is unfortunately what was happening so far and what caused the unreal prices. Properties are homes and/or offices where users (and that means human beings) live in, rear kids in or work in.
2. Identify your customers and understand their needs. Does your average target customer drive a Bentley (not the ones you were once giving away!!) or a Nissan? What are they looking for in a property? What are their immediate and long-term needs and concerns? Are you able to address those? Take your customers and their requirements seriously if you as a company want to be taken seriously.
3. Make sustainable units that are built to last long. What use is a 99-year lease if the expected operational life of the building is less than a quarter of that time??!!
This is not about banks or lending. Banks will automatically start to lend if they smell some profit coming their way. Focus on your customers first and see what they need. And good luck.
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live up to your commitments
Posted by fadi at 17:51 UAE time
Sell for realistic prices, deliver in realistic times and deliver on your promisses for residency and other benefits and we can buy.
And the banks have to reconsider their rates,
ITS STILL UREALISTIC.
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The fundamentals
Posted by Charlie at 17:04 UAE time
The fundamental is confidence, confidence borne by making true on what is being said.
First is the offer of residency in the event someone buy property in Dubai way back in 2005 that investors believe, even for a small earner like me belive the residency statement . And the residency was only offered in Dubai. The truth is Dubai cannot go it all along. There are seven Emirates in UAE. They must have the same policy with regards to residency and property. So as a consequnce, the residency issue was clarified only in 2008. A lot of investor woke up to reality.
2nd. Investors loss their hard earned money, a life time savings. Investors can call it loss as loss and start all over again. But never will the investors allow themselves to be swindle again the second time around to whatever they will be saving. Not anymore.
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Developer direct sales & Mortgage Financing
Posted by Hans J. Weber at 15:01 UAE time
UAE banks face a mountain of defaulted mortgages today because banks did not approach the RE-market realistically. As long as developers like DAMAC expect banks to finance their urealistic profit expectations, investors will stay away. Banks are going to face a painful struggle period before they got rid of their foreclosed bulk of non-performing loans.
It will take many years to come before the RE-market is balanced in Dubai and developers have to learn that they can only fool the market onces.Investors will look at RE-offers very critical in the future. The price finding in the RE-market will be dominated by the secondary market of foreclosed RE for years to come (compare the US or Spanish housing market).
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EASING FUNDING AND PRESSURE ON BORROWERS
Posted by Shandra Coppard at 13:55 UAE time
It would be a good step if banks in the UAE would follow the practice of banks in other countries and reduce the mortgage rates to release some of the pressure on borrowers. Banks in the UAE have mortgage rates of around 7 percent while in some other countries it is around 2%.
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damac
Posted by liaqat at 11:49 UAE time
if only developers like damac would leave self esteem and go out ant talk to there investors (with out them they are doomed)
yes they have spoken to investors with a very negetive and attitute manner, so investors are worried about there life saving,yes fininace is a good proposal but with investors already tied up with damac who has paid up to 30/50% and some more beyond this. and the project is either deleyed or nothing has happened or no sign of excecution..approch ny damac to go forward is first they should invite investor by there top tier
executive/managment who can address to the matter, and in return you(investor) expect to have a responce and not the silence. as silance will not make but break.so pls for the sake of what you MR Sajwani have achived in your past 25 years keep up the bond between your company and your customer.thk
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Amlak & Tamweel?
Posted by Joe at 11:05 UAE time
Where are Amlak & Tamweel?? When is the government going to decide on their future so these companies can get back to offering mortgages? Why did the government refuse to allow Amlak & Tamweel a banking license which would have allowed them to accept deposits like ADCB, Emirates NBD and others who also offer mortgages?
It seems to me that the government is waiting for something, I don't know what, before announcing the fates of Amlak & Tamweel. It also seems to me that as soon as the 2 biggest mortgage providers start again providing mortgages, there should be an upturn in the market which will bring back some confidence that Dubai real estate, depending on the developer, is a safe long term investment.
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Financing and real estate
Posted by Maalek at 09:50 UAE time
I do agree that banks nad financial institution must help with real estate if situation has to change and transaction to occure but that should be after cleaning the market from every TOM DICK and HARRY that ruined the market and assumed that car ruffles and jets can make people buy their dreams.
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Analogy
Posted by John Smith at 08:46 UAE time
"consumer goods industry which has traditionally tied up with financial institutions and banks to boost sales – from television sets to home theatre systems"
Good analogy - except if Damac were in TV business, 4 years after signing up to buy a TV, we'd be lucky to have some TV parts lying around the house, waiting for it to be assembled, while having to pay for the cable bill, service charges & the financing.
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