Thursday, January 29, 2009

Poor response to Abu Dhabi Property Show IREIS 2009

IREIS 2009
The Abu Dhabi Real Estate and Investment Show at the National Exhibition Center, unveiled yesterday, witnessed a rather empty scene, except for few exhibitors who were seen peeking at each other's stalls.

This is a total contrary to the frenzied buying seen during other property shows in the same venue, when the housing boom was at its peak last year.

The IREIS 2009 Property Show, which included participation of all major property developers in the region, including Aldar and Hydra, saw only a few scattered buyers, a scene completely different to the Cityscape Exhibition, when people were constantly selling to the packed crowds.

A Partner in an estate agency, who spoke to the media about the event, expressed his shock and said that several projects that the developers exhibited in this show were already revealed to the public earlier, while, the new projects being announced are long-term future developments, which seems vague and without proper schedules.

He added that the opportunities for investing, however, still exists, but is meant only for cash buyers.

Property transactions have been badly hit, with the drying up of cheap credits and banks demanding higher mortgage deposits from borrowers. These high interest rates by banks are adding pressure on existing borrowers who had taken large home loans when rates were lower. To add to the misery, this happens when people are worried about their job security on the other side. The prices of housing in Dubai softened towards last quarter of 2008.

The Commercial Director, Hydra Properties, Mohamad al Habech, said that while there is no dearth for number of developers, there are very few buyers.

"We have been badly affected by the current financial situation. Several visitors here seem to be existing investors who are trying to catch a feel of the current market situation, so that they can appreciate the worth of their investments. People are drawn in by the curiosity factor, but, we do not expect a great deal of sales to happen," he said, when speaking about the event.

The Director-Marketing & Sales of Plus Properties revealed that his firm has stopped bringing out new projects and are focusing on completing the existing ones.

He said that his company is participating in the show, not to focus on sales alone, but also to show that the company is still operating, confirming that the firm is here for long-term, regardless of whatever happens in the market.

Pointing to the positive side of things, he said that the crisis is in the international property market, and Abu Dhabi is only experiencing the ripples of the problems happening elsewhere and the economy here is still healthy.

He also said that his company has no loans to maintain, and there is the added advantage of lower construction costs and lower prices of raw materials.

1 comment:

WebJunky said...

this article does not make any logical sense by any means. ok so you are going to impose restrictions on cancellations....how can you force any private sector to remain in business when it does not want to? let alone does not want to, even if they wanted to where is the cash going to come from? i dont think the writer understands the relationship between the economy, the credit market and properties in dubai, or anywhere else for that matter