By Elsa Baxter
Study shows negative column inches about city's real estate falls by third quarter.
A study into media coverage of the Dubai’s major real estate developers saw negative reports fall considerably by the third quarter of this year.
The global financial crisis has impacted the emirate’s real estate industry, with prices falling up to 50 percent from their high at the end of 2008.
But, as the effects begin to soften and green shoots appear, negative reports of the sector has also waned, according to the results of the Mediastow Q3 report.
The 34-page report looked at media coverage of developers Al Qudra Real Estate,
, Dubai Properties, Nakheel, Sama Dubai and Damac.
Some 3,962 articles from 168 publications were monitored between July and September 2009, and stocks movements of
were evaluated and correlated with media coverage.
was the most written about developer in terms of column inches during that time, followed by
. Nakheel had the most coverage in September, followed by
"The overall volume of coverage has dropped compared to the golden era of the early 2008, but strong signs of recovery are evident,” said Mohamed Elzubeir, head of Mediastow.
“Negative coverage is now confined to the tumbling stocks, and positive coverage is increasing with projects getting back on track.”
Elzubeir said coverage of Damac and
peaked in July, Al Qudra Real Estate, Sama Dubai and
in August and
, Dubai Properties and Nakheel in September.
I was just reading a short article in the sun newspaper in UK on 20th Nov. They were saying that its the "end of the world" meaning that it was doubtful the world islands will ever get finished. It is a fanstastic and very bold idea and I hope you prove them all wrong. People forget it takes years to built projects on that scale, there again not many people have done it since the Romans or the Egyptians :) Westerners are an impatience breed :)
All the expatriates in Dubai who were in the past writing these negative comments, have since lost their jobs and gone home. Who is left in Dubai to carry on with the negative comments. The growth in population stem from new comers to this place. It would take them a while before they understand the economics of Dubai
With the sea levels rising these islands will all be underwater eventually plus all this dredging is causing untold harm to the marine life but who cares? Have money, will do as one pleases -- the hell with the planet!!!!
yes indeed . . a very bad idea but when you've got shed loads of money, you can do anything. Furthermore, let me think where all the expertise came from to build the islands . . hmm One of the reasons that there is less -tive press is because there is no point talking about the same issue when nothing will get done about it. People are aware of the problem but are growing tiresome of the same old. The damage is done already and people who are wishing for a recovery are short sighted.
The reason you see less negative press about developers is not because there's not much to speak about. It's because Dubai is conveniently sitting tight and ignore the negative press. Like John says, people have realised that they are ignoring us so then, what's the point? Look at that story you did on Vue du Lac and Al Attar playing rogue developer. He made no statements, RERA conveniently washed its hands of it, when you go there, they tell you - OH BTW, those complaints online are no longer valid although you get a reference number and you're made to think there is someone looking into it. But people get sick of complaining. Look at Tamweel. The whole world has reduced its interest rates but because Tamweel is in trouble, they continue to charge 9.14% interest and all of us poor folks who never defaulted on our mortgage, we pay the price. Oh well... there will be better times and then, we'll remember NEVER to invest in Dubai again.
Dubbo - Damage has been done more by change in laws in favour of developers, the impact due to negative press is minimal.
Of course there is a lack of bad press. There are no new projects commencing, no projects getting handed over, no people buying, loads of delays and the list goes on. It is not as though the bad press has gone away, it is just that there is nothing to report. In Dubaiâ€™s favour, it must be getting better as it could not have gotten much worse.
Someone just said she'll never invest again in Dubai, that's because you don't have anything to invest anymore. Your impetuosity proved to be your debacle.
If the negative press has reduced due to genuine reasons like projects getting completed and handed over, new projects getting initiated etc., then it is good for the country's economy. But I sincerely doubt this. Again, in Dubai, whenever there is a talk of economic recovery, its purely based on the real estate sector. It wont be too long before developers start promising the moon again and start the next bubble. Only this time I hope the investors are better informed. The financial sector in Dubai is giving mixed signals. I feel most of the banks have not yet accurately reported their exposure to the troubled Saudi groups (Saad and Al Gosaibi). A report in this website itself puts the exposure at USD 2.9 billion, though details have not been furnished. Also we have not heard much from the banks about the health of their credit card portfolios. (This could be another disaster-in-the-waiting). The overall profitability of Dubai banks in 2009 have been significantly lower. Its high time that Dubai looks to diversify its economy beyond real estate. In any case, the real estate supply will soon become extremely low since creating land by reclamation of land will not be economically viable anymore.
It's not like Gulf News or Khaleej Times would ever report anything negative about the UAE. Arabian Business week is about the only one other then Bloomberg reporting both positive and negative news.