Dubai property mkt recovery from 2011 -Deyaar
DUBAI - Property prices in Dubai, which have tumbled close to 50% over the past year, may fluctuate 5% up or down in 2010, but recovery isn't expected to start until 2011, the chief executive of the emirate's second largest developer said Monday.
Speaking at a roundtable event at the company's headquarters, Deyaar Development chief executive Markus Giebel said he doesn't expect there to be another "significant drop" in prices this year and said growth is likely to return to the market in 2011.
"People underestimate the fundamentals of Dubai," Giebel said.
Deyaar last week reported a 95% slump in full year earnings, weighed down by impairment charges and provisions but said it's looking forward to more stable cash flows this year.
Deyaar like other UAE developers, has been hit by a regional property downturn brought on by the wider global financial crisis. Property prices in Dubai have fallen close to 50% since their peak in late 2008.
Giebel said the developer currently holds AED1 billion in debt and has a debt-to-equity ratio of 12%.
"Our cash flow situation is pretty healthy," he said.
Deyaar plans to hand over up to six projects in Dubai this year and is also looking at developing projects around the Middle East and North Africa region, Giebel said.
The developer has also put on hold its AED500 million distressed property fund.
"We've put it a little behind us," Giebel said.
Deyaar launched the fund to buy up distressed properties from investors who have defaulted on their purchase agreements with the developer.
Deyaar shares closed flat at AED0.49 in a slightly lower overall market. |
