"DUBAI is back with the big plans. What it doesn't have are the biggest property investors. Surging home prices in parts of Dubai and rebounding shopping and tourism markets are prompting developers to announce projects on a scale not seen since the emirate's property market collapsed in 2008. So far, sovereign wealth, pension and insurance funds are staying away even as they splurge on real estate elsewhere.
"It's a thin market and it has a reputation of being something of a casino," said Richard Price, chief executive for Asia at CBRE Global Investors, which manages US$93 billion of property assets. "I struggle to think of any real client appetite for exposure."
Dubai's developers, government officials and leader Sheikh Mohammed bin Rashid Al Maktoum have unveiled projects with a value of at least US$40 billion in the past six months while providing few details on how they would be financed. With local and foreign banks unable or unwilling to lend for development, the absence of institutional investors calls into question just how many of the plans will come to fruition."
'via Blog this'
No comments:
Post a Comment