Subscribe Now!

Property Watch Magazine and our monthly Newsletter will keep you informed about property market latest activity, trends, and figures.

Uae Property Firms: Rise In Price Targets

Posted on May 24th, 2010

The UAE’s six-year property boom came to a halt last year, leading to delays and cancellations of projects.

Nomura upgraded targets on property firms in the United Arab Emirates on Thursday in the expectation the stabilising property market would pull stock prices out of their troughs faster than originally anticipated.

Nomura upgraded price targets of Aldar, Deyaar Development, Emaar Properties, Ras Al Khaimah properties, Sorouh Real estate, and Union Properties.

Easing liquidity conditions following reports about the upcoming $10 billion Dubai government bond programme, also boosted optimism, the bank said, adding that likely defaults of some private property developers might open the door for “vulture” investment in distressed assets.

The bond programme, launched in February, is meant to help state-linked firms. The first $10 billion tranche was sold to the central bank of the UAE, a seven-member federation including Dubai and key oil exporter Abu Dhabi.

Dubai has not said when the second tranche will be issued but a ruling council member said on Friday it could be as soon as this month.

The UAE’s six-year property boom came to a halt last year, leading to delays and cancellations of multi-billion dollar development projects.

“We forecast stabilisation in the secondary (Dubai and Abu Dhabi) property markets in Q4 2009, which we are now starting to observe. In line with our original thesis, we upgrade our target prices based on where we think we are in the cycle,” Chet Riley, Nomura’s equity strategist said in a note to clients.

“Optimism is being fuelled by a global real estate resurgence, the emergence of distressed asset funds, foreign capital inflows and a `federal fill up’ in terms of the second $10 billion tranche of the Dubai bond, which has eased temporarily liquidity concerns.”


The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of the Roots Land Web site does not constitute advice or a recommendation by Roots Land Real Estate Brokers LLC and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this Roots Land Web site.

Roots Land Real Estate Brokers LLC can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made by any of the contributors to the various columns on the Roots Land Web site nor do opinions of contributors necessarily reflect those of Roots Land Real Estate Brokers LLC.

All the information available on the Roots Land Website is sourced from various public news/information sources and Roots Land Real Estate Brokers LLC is neither responsible nor liable for the content of the articles posted.

In no event shall Roots Land Real Estate Brokers LLC be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to the Roots Land Web site or the information contained in it, whether such damages arise in contract, negligence, tort, under statute, in equity, at law or otherwise.