Insights
Discover the latest market insights and hear our expert opinion
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. […]
Sunil Parmar, Associate Partner of the Project and Building Consultancy department at Cavendish Maxwell, explains the common yet significant risks associated with Reinstatement Cost Assessments (RCAs), otherwise known as insurance valuations for properties.
Real estate market conditions remained challenging in Q2 2019, with prices continuing to decline, albeit at a slower pace in some communities. Supply remains the primary driver for price declines, and developers continue to offer attractive payment options with the aim of turning tenants into owner-occupiers.
Real estate markets and demographics What drives real estate prices – sheer numbers or economic weight? Intuitively, all other things being equal, consistently higher rates of growth of resident population in a region or country will drive up real estate prices by comparison to its neighbours and competitors. The IMF once even advanced a rule that a 0.25% rise in […]
Cavendish Maxwell has sought to improve investor understanding of returns in the UAE market for international investors by presenting them in local currencies. The resultant Currency Adjusted Real Estate indices enable instantaneous comparison of returns.
Effective market research, the lynchpin of successful real estate development and investment, is impossible without reliable data; without it, developers and investors face significantly higher risks.
Our first full report on Kuwait’s property market highlights that whilst the country’s economy is still largely driven by oil, other sectors, such as retail, showed robust performance.
Under new International Financial Reporting Standards (IFRS) 9, all GCC banks compliant with the standards are required to break down investment portfolios into pre-defined stages. Accordingly, Stage 2 – referred to as underperforming, where credit risk has increased significantly since initial recognition – warns stakeholders to account for expected credit losses, especially since the classification could lead to business troubles […]
Why does it matter? Real estate indices generally exhibit a much smoother and less volatile evolution than listed real estate return performance. This is explained by three data measurement issues: the impact of property valuations rather than actual transactions, the aggregation bias of combining results over time, and the effect of financial leverage in listed entities which increases the volatility […]
The firm’s first comprehensive quarterly report on the health of the UAE’s property market as a whole, covering the residential, commercial, industrial, hospitality and retail sectors.
New sectoralism implies that the traditional real estate sectors, including residential and industrial, are no longer fit for purpose in the majority of international markets.
Will Brexit have an impact on Gulf real estate markets? Or is it – as many in the UAE perhaps believe – a case of a faraway problem with which Gulf governments and local investors need have no concern?
