This year’s CityScape in Dubai is forcing the industry to face a few harsh realities. Duding the run up to the exhibition, all the major Dubai property developers pulled out, including Nakheel, Emaar and Limitless, although Emaar and Nakheel were touted as “Foundation Sponsors,” and the 2009 exhibitor list on CityScape’s website is still empty. The amount of exhibitors is well down and the usual, “XXX Billion Dirham development!” announcements have been somewhat lacking. I don’t think anyone could have swallowed that this year.
STOCKHOLM (Standard & Poor’s) March 17, 2009–Standard & Poor’s Ratings Services said today that it had lowered its long-term corporate credit rating on Dubai-based property developer Emaar Properties PJSC to ‘BBB+’ from ‘A-’. The outlook is negative.
Credit Suisse expects earnings of Dubai-based developers to reflect the impact of the the global liquidity crunch that has slowed down the sector drastically.
In its fourth quarter preview on UAE real estate, Credit Suisse said it is projecting higher earnings for Abu Dhabi-based Aldar Properties and Sorouh Real Estate but expects the opposite for Dubai’s Union Properties and Emaar Properties.
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HSBC Plc slashed its price estimate for property giant Emaar Properties to Dh8.5 from Dh13.9 amid plummeting real estate prices and the first rash of foreclosures in Dubai.
“The estimates cut will reflect the likelihood of further market weakness,” said HSBC, citing its survey which showed Dubai property prices in December fell 23 % from their September peak. HSBC said the possibility of a more prolonged economic slowdown may force Emaar to postpone or shelve its projects until there are clearer signs of recovery.
Standard & Poor’s Rating Services said today that it had revised its outlook on Dubai-based property developer Emaar Properties PJSC (Emaar) to negative from stable.
“The outlook revision reflects a rapid weakening of the real estate markets in Dubai, and our uncertainties about the depth of the downturn and the pace of eventual recovery. A prolonged downturn could negatively impact our view of Emaar’s business risk, and it could also lead to deterioration in Emaar’s currently healthy financial position,” said Standard & Poor’s credit analyst Alf Stenqvist.
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Burj Dubai, the tower being developed by Emaar Properties PJSC, has reached a new record height of 688 meters. The tower became the world’s tallest after surpassing North Dakota, USA’s KVLY-TV mast (628.8 metres; 2,063 ft) in April 2008. With over 160 floors, the tower also has the largest number of storeys in any building.
When completed, Burj Dubai will meet all four criteria listed by the Council on Tall Buildings and Urban Habitat (CTBUH), which classifies the world’s tallest structures. CTBUH measures the height of buildings to the structural top, the highest occupied floor, the top of the roof and the tip of the spire, pinnacle, antenna, mast or flag pole.
Dubai is to introduce a set of short-term visas for foreign investors in the real estate sector. Be warned. Developers and agents selling property with the guarantee of a residence visa should be avoided. It is not a given that those who buy a property in Dubai will get a residence visa.
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