Opinion
Hear our experts’ take on the latest developments and trending topics
25 February 2020
Buy with a mortgage In most parts of the world, developers have insufficient size and financial ability to provide financial support to residential real estate purchasers. Instead, banks and other financial institutions provide mortgages for those unable, or unwilling, to make purchases in cash. In the UAE, mortgages are limited to a loan-to-value ratio of 80% (for citizens), and 75% […]
5 February 2020
The property price correction in the UAE has triggered many investors to explore alternate investment avenues to preserve and grow their wealth. Ironically, the current downturn in the real estate sector is also an opportune time to invest in a Real Estate Investment Trust (REIT). REITs allow investors exposure to the real estate sector without the risk and hassle of […]
16 December 2019
How easy it is to retire in the UAE? Easier as of this year, is the simple answer.
15 December 2019
It’s the time of the year when companies try to maximise efforts for a strong close to the last quarter before jetting off on long-planned holiday breaks. It is also the time when they are closing their books for the year, ensuring accuracy of all financial information before starting afresh in the new year. With a rise in the number […]
11 December 2019
What just happened? The UAE Central Bank reduced the 3% early settlement fee (‘exit’) for mortgages introduced in June last year to 1%, or Dh10,000, whichever is lower.[1] Market participants generally reacted favourably to the announcement, noting that in principle at least, borrowers must always weigh up the benefits of lower interest rates against the up-front cost of the exit […]
20 October 2019
A simple business model of leasing large, coveted office space on a shared basis; a peak valuation of USD 47 billion; a mission to “to elevate the world’s consciousness”. These factors seemed to be the ideal ingredients for a successful start-up with a social conscience – WeWork. But, one look at a filing from the industry-leading unicorn as part of […]
25 September 2019
What has happened Responding swiftly to the cut in interest rates by the US Federal Reserve, the UAE central bank followed suit in September this year with a reduction of 25 basis points to 2.25%. This is far from a historic low: interest rates in the UAE averaged 1.43% from 2007 until 2019, reaching an all-time high of 4.75% in […]
17 September 2019
Short-term rental accommodation, or holiday homes, have been a hot topic of discussion over the past couple of weeks, first because of Emaar Properties’ entry into the space with its short-term rentals platform Ease by Emaar, followed by the developer banning such stays in its Downtown Dubai community with effect from September 19. Apart from the fact that the move […]
5 September 2019
We’ve been listening to news of an increasing number of stores announcing closures, citing unviable trading conditions in the face of heated competition from e-commerce and changing preferences of a new demographic. The latest retail giant to report trouble is Forever 21, who as of last week was preparing for a potential Chapter 11 bankruptcy filing. The ramifications of these […]
20 August 2019
Business valuation has always relied on the triangulation between three different methodologies: discounted cashflow (DCF), comparable analysis, and some form of dividend valuation approach.
30 July 2019
The importance of forecasts Every well-planned real estate investment decision is underpinned by a series of market and site-specific forecasts. For a construction project, the most important are almost inevitably the projected sales price and schedule, and construction costs, whilst for an investment, it is future rents, eventual sales price, yields, and most probably, financial variables such as interest rates. […]
23 July 2019
The importance of forecasts Every well-planned real estate investment decision is underpinned by a series of market and site-specific forecasts. For a construction project, the most important are almost inevitably the projected sales price and schedule and construction costs, whilst for an investment, it’s future rents, eventual sales price, yields, and most probably financial variables such as interest rates. We […]
