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Regional real estate sector poised to bounce back

October 26, 2009 12:00 by Aarti Nagraj

Regional real estate sector poised to bounce back

 

·        Industry prospects are very optimistic, says Casamia Star

·        Future positive trends evident at Cityscape 2009 event

 

  The slowdown in the regional real estate sector notwithstanding, the region and Dubai, in particular, will bounce back soon. This will be accentuated by providing a major boost to the investor confidence, which will in turn provide impetus to the industry’s growth momentum. Such realistic hope is the new buzzword, indicating that the worst is over – both for Dubai and the real estate sector.

 

Trends to this effect were evident at the recently concluded Cityscape event in Dubai (October 5-8, 2009), which witnessed very optimistic prospects beckoning the industry. Casamia Star Real Estate LLC, the leading German company in the real estate sector, feels that the outlook in the next 8-9 months is bright with Dubai set to be the first regional market to improve from recessionary trends.

 

The company feels that events such as Cityscape – a perfect barometer of sentiment for the regional real estate sector, have gone a long way in kick-starting activity in the sector. Casamia Star, which focuses entirely on real estate brokerage services, has reiterated that the need of the hour is to get back to the fundamentals and reassert our core values, especially in promising markets with immense potential such as Dubai and Abu Dhabi.

 

Mr. Hendrik A. Hommel, CEO of Casamia Star LLC, said: “There is little doubt that the global financial turbulence has had a profoundly sobering effect on the regional real estate sector and the psyche of the investors, denting their confidence big time. In fact, the global credit crunch has eroded the investors’ appetite, which further worsened with increased market supply, initiating a slowdown in capital value growth.”

 

He added: “What we are seeing now is typical of any slowdown -- announcements of projects being indefinitely deferred or cancelled further fuelling the negative investor sentiment. Naturally, the average sales prices have declined between 40 per cent and 42 per cent since the fourth quarter of 2008. However, at Cityscape and now on, there have been transparent progress reports on existing projects with realistic completion milestones and handover dates. Ongoing mega projects by leading names in the industry and news of increased activity will inject substantial liquidity into the sector, which in itself is a vital confidence-booster.”

 

Mr Khaled Kadik, Managing Director of Casamia Star LLC, feels that not all is lost. “The immediate step is to implement long-term strategies and prepare for the impending challenges. It is tough to be upbeat but an opportunity is waiting to be tapped. No market can beat the supply and demand battle -- the market will have to stabilize and grow. Especially, with over 64,800 new units expected to be delivered to the market by the end of 2011, the supply will easily outweigh the demand.”

 

Mr Kadik feels optimistic outlook beckons, particularly in Dubai and Abu Dhabi.  The buzzword is long-term investments – with premium time touching approximately 5-7 years. Long term investment will not only generate capital growth but also generate ongoing rental income – international research has indicated a yield between 12 and 16 per cent for long term renters.

 

“It is time to start the recovery. In order to stimulate the markets, aside from improved liquidity and sentiment, there has to be a convergence of purchaser’s and sellers’ prices. With the kind of infrastructure being offered by Dubai and Abu Dhabi such as Metro, direct air connectivity globally, world-class road and water transport, there is no doubt that the current scenario is a temporary glitch in a long-term upward curve. Dubai remains a core base from which to do business in the region, and its role as the business hub has only been strengthened as Dubai’s own construction scene looks set to recover quicker than many others,” summed up Mr Hendrik A. Hommel.

 

With its in-depth knowledge of the property sector across the world, and particularly in the region, Casamia Star LLC is perfectly poised to offer a vast array of property choices to its customers and assist them in making informed purchase decisions.

 

Casamia Star Gesamtplanung L.L.C has successful sale various projects in Germany and the UAE. The company’s reputed skills and rapid international expansion along with the glitter of their latest projects, has paved the way for its impressive growth profile in the region.

- ENDS -

 

About Casamia Star Real Estate Broker L.L.C

Casamia Star L.L.C is a merger between two leading German names, the real estate expert Casamia Star L.L.C and the world renowned German architectural firm Gesamtplanungsbuero. Established by renowned German Architect Hendrik A. Hommel, included the project nicknamed “Lurgihaus” building designed by Mr. Hendrik Hommel was featured in the Guinness Book of World Records 1989 (and years to follow) as Europe’s largest office building with surface area of 87,000 square meters., Casamia Star L.L.C houses eminent architectural experts specializing in Project Management, Architectural Design, Investing, Buying, Selling, Renting and Property Management. Casamia Star L.L.C is also a member of Dubai Property Group.