Deepens

Dubai Developers’ Slip From Stars to Duds Deepens in Homes Glut

(Bloomberg) — Dubai real estate stocks were once the stars for investors betting on the city’s booming economy. But their fall from grace has been spectacular and seems set to continue, given an abundance of unsold homes and scant prospects for a recovery in the oil-rich region.

Shares in Emaar Properties PJSC, an industry bellwether and the developer of Burj Khalifa, the world’s tallest tower, have dropped almost 80% from their 2014 peak, when average real estate prices in the emirate were about 30% higher. Competitor Damac Properties Dubai Co. has posted a similar slump since a 2017 high. Smaller player Union Properties PJSC, which is in talks to restructure debt, trades at a 90% discount from its 2005 levels.



graphical user interface, chart, histogram: Burj Khalifa developer Emaar Properties has declined for 15 years


© Bloomberg
Burj Khalifa developer Emaar Properties has declined for 15 years

Not even a majority of buy recommendations from analysts, thanks to cheap valuations and expectations of government support, is enough to spur a change in sentiment. That reflects a supply glut that the companies themselves helped create, and which is worsening because of an exodus of the expatriate workers who account for most of the city’s population.

“I looked at Dubai property several times in the past, but the picture was unchanged every time, exactly because of the same issues — huge unsold stock levels and continued development activity,” said Ekaterina Iliouchenko, a portfolio manager at Union Investment Privatfonds GmbH in Frankfurt.

An index tracking eight Dubai real estate stocks is trading near the biggest discount to peers in emerging markets since 2011.



chart: Dubai stocks are trading cheaply compared with EM peers


© Bloomberg
Dubai stocks are trading cheaply compared with EM peers

Scrutiny of real estate developers and construction companies intensified in recent days as shareholders of Arabtec Holding PJSC, which helped to build the Burj Khalifa, voted to dissolve the firm. The demise of the

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A tale of two Britains: homes market boom deepens social divide

LONDON (Reuters) – Claire Tomlinson dreams of buying a three-bedroom house in the leafy northern English town of Sandbach but now finds herself priced out of the market, a story that is becoming all too familiar in Britain in the pandemic era.

Claire Tomlinson and her partner Ricky Collier pose for a portrait in Sandbach, Britain, September 25, 2020. REUTERS/Molly Darlington

The 28-year-old e-commerce worker and her partner were saving diligently while renting in Sandbach so they could buy their own home this year, an ambition that has been thwarted by forces beyond their control.

A post-lockdown stampede for bigger houses outside of urban areas in the new work-from-home age has sparked a fresh boom in Britain’s housing market – especially in areas like Sandbach, a small country town surrounded by the rolling Cheshire Plains.

While this dash for the countryside is not a phenomenon unique to Britain, its decision to suspend taxes on residential property purchases till April 2021 has turbocharged the market.

Now house prices have risen to record highs, some 3-4% above their pre-pandemic level – a stark contrast to the battered economy which may be on course for its biggest annual contraction in around 100 years.

The housing market has been one of the starkest manifestations of social and wealth inequality in Britain for many years, and first-time buyers like Tomlinson already faced a daunting task to haul themselves onto the property ladder.

Now, the intensifying competition and rising prices during the pandemic, which coincide with an imminent reduction in a longstanding state support scheme for first-time buyers, make it all but impossible for many people to afford to own their home.

“It’s so disappointing,” said Tomlinson.

“You try to follow the advice, be financially responsible and save enough money for a deposit. But when you

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A Tale of Two Britains: Homes Market Boom Deepens Social Divide | Investing News

LONDON (Reuters) – Claire Tomlinson dreams of buying a three-bedroom house in the leafy northern English town of Sandbach but now finds herself priced out of the market, a story that is becoming all too familiar in Britain in the pandemic era.

The 28-year-old e-commerce worker and her partner were saving diligently while renting in Sandbach so they could buy their own home this year, an ambition that has been thwarted by forces beyond their control.

A post-lockdown stampede for bigger houses outside of urban areas in the new work-from-home age has sparked a fresh boom in Britain’s housing market – especially in areas like Sandbach, a small country town surrounded by the rolling Cheshire Plains.

While this dash for the countryside is not a phenomenon unique to Britain, its decision to suspend taxes on residential property purchases till April 2021 has turbocharged the market.

Now house prices have risen to record highs, some 3-4% above their pre-pandemic level – a stark contrast to the battered economy which may be on course for its biggest annual contraction in around 100 years.

The housing market has been one of the starkest manifestations of social and wealth inequality in Britain for many years, and first-time buyers like Tomlinson already faced a daunting task to haul themselves onto the property ladder.

Now, the intensifying competition and rising prices during the pandemic, which coincide with an imminent reduction in a longstanding state support scheme for first-time buyers, make it all but impossible for many people to afford to own their home.

“It’s so disappointing,” said Tomlinson.

“You try to follow the advice, be financially responsible and save enough money for a deposit. But when you actually try to buy somewhere, you realise the system is broken.”

Last week property website Rightmove said average asking

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