Invezz Reports On Signs Of Revival In Dubai Property Market
Investor portal iNVEZZ.com has recently reported on signs of a rebound in the Dubai property market. In particular, Dubai developer Emaar has made gains on the Dubai Financial Market, bolstered by upbeat reports from international banks.
iNVEZZ.com has uploaded a news item, headed “Emaar Share Price Hits 51-Month High on Dubai Property Revival”, which points to signs of a rebound in the Dubai property market. The investor portal was reporting on news of a jump in the share price of Emaar Properties PJSC (DFM:EMAAR). Emaar, the Dubai Financial Market's (DFM) largest listed real estate company, climbed to a four-year high on 10 February 2013, as upbeat reports from international banks seemingly stimulated demand from both domestic and foreign investors. iNVEZZ noted that Emaar, which developed the world’s tallest skyscraper, had risen to its highest level since the beginning of the Dubai property market crash in 2008.
iNVEZZ journo Rachel McCormack wrote: “Emaar’s performance on Sunday was the strongest one-day movement since the start of one of the world’s worst property crashes, which sent prices in the emirate plunging more than 65 per cent over a four-year period.”
The iNVEZZ news item cited recent appraisals by the Bank of America Merrill Lynch and corporate bank HSBC, published on February 4 and February 7 respectively (http://www.reuters.com/article/2013/02/10/mideast-markets-idUSL5N0BA2P320130210), in which both banks increased their target price on Emaar’s shares, as providing support for the increased traders’ interest and the boost in the developer’s stock price. As further evidence of the improved investor sentiment, the iNVEZZ author pointed to the recent property price rises in some parts of Dubai.
Providing additional information on expert opinions and forecasts, the investor portal quoted HSBC’s team of analysts: “We expect Emaar to continue performing well on the back of strong Dubai real estate launches”. As noted by iNVEZZ though, both that bank and real estate consultancy Cluttons are cautious about forecasting a market boom, with in-pipeline supply representing a possible depressing effect on pricing going forward. The investment portal informed its readers that the UAE is nevertheless planning to support the Dubai property market with some major development projects to be launched and co-developed by Emaar this year.
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