| 08 Nov 2008 |
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Emaar reschedules mortgage repayments
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Saturday, Nov 08, 2008
Gulf News
Dubai: Faced with the difficulty of securing home loans from banks and finance companies amid the liquidity crunch, cust-omers of Emaar PropertiesEmaar Properties
have been given a breather in terms of extending the time for repayment of mortgages, a senior official of the company told Gulf News on the sidelines of the World Economic Forum.
Eisam Galadari, chief executive and managing director of Emaar Dubai's international operations, said the company introduced the facility one week ago and intends to continue it until the situation eases.
The UAE government stepped in injecting Dh120 billion to ease banks' liquidity squeeze.
"The credit crisis faced by the banks has made it difficult for our cust-omers," said Galadari. "Extending the time will help them to pay their money. Earlier banks used to give loans on the same day the application was made. But now they have become very cautious. It's hard to get a loan. It takes more than a month to get a loan."
Sold out
In the overall context of the ongoing and announced projects, he added that there is no slowdown in sales and most of the units have already been sold out.
Talking about global acquisitions in markets which have seen a meltdown and valuation has dropped, particularly in the US and Europe, Galadari said the company is following the news on the sectors affected, but is not looking at anything at the moment.
"The prices may come down further and we will wait," he said. "Right now we are not interested."
reported a net profit of Dh1.51 billion for the third quarter of this year, down 3.2 per cent from Dh1.56 billion reported during the same period last year. EmaarEmaar attributed the lower net profit for the first nine months of the year to a Dh750-million write off relating to the acquisition of John Laing in the US. John Laing's performance was adversely affected by the US mortgage crisis. EmaarEmaar bought John Laing for $1.05 billion in June 2006.
Reuters reported that Galadari said EmaarEmaar was planning to launch two projects in Dubai worth $5 billion (Dh18.35 billion) each, subject to market conditions.
"We have to rely on these [financial] institutions... they are financing our customers and we have pre-sales," he said.
Galadari said the group was "watching the market", but had yet to cancel or put back any projects.
© Gulf News 2008. All rights reserved.
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Community Comments (2)
Just postponing the inventible. Those who can't pay today won't be able to pay tomorrow. Emaar property prices should reach the same levels they had in 2003/4. Its a cycle and everyone who got in late in the upward trend will have to either take a loss or wait a very long time for it to reach its breakeven point and bear the payments.
A slide in property prices will take place by Q2 2009. When sellers realize how difficult or impossible it is for them to offload there property, This is a simple puzzle, credit/leverage is why people managed to buy property n the first place. Unemployment rates among the financial and RE sectors in the region are increasing, but its clear no one would read this in a newspaper or hear it over the news as this will create panic. 3/4 of property buyers in the region are foreigners looking for a quick easy return. These funds are on the sidelines now and could remain this way upto a decade.
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