Pakistan Property & Real Estate News

Rawalpindi: Commercial buildings fire risk looming large

Rawalpindi: The poor condition of electricity wiring of most of the plazas in the city could lead to another incident like Gakhar Plaza where fire broke out due to short circuit and concerned authorities are least bothered to address the situation.

According to a survey conducted by ‘The News’ the most serious situation of the electricity wires was witnessed at mega shopping malls and some multi-storey shopping plazas of the city.

The owners of these plazas who have spent millions of rupees on the construction of these plazas are least bothered about the dangling electricity wires.

The electricity wiring of a shopping plaza situated at the College Road is in a pathetic condition.

A shopkeeper Asim told ‘The News’, “The main electricity supply box remains opened and in rain we often see sparks and flames emanating from this box, which also leads to the suspension of power supply of the whole plaza.”

Talking to ‘The News’ Hussain Shah, owner of the plaza said, “All the plazas at this road have same electricity system, where the main supply boxes are placed openly, it is the responsibility of the Islamabad Electric Supply Company (Iesco) to replace these faulty systems at a safe corner.”

An electrical engineer Shehzad Khan said, “The electricity wiring is one of

the toughest job for an electrician, but

unfortunately here in our country every person who is associated with the electricity business calls himself an electrician.”

“The authorities are not paying heed towards the situation because there is no process to check the wire quality and other issues related to the electricity wiring,” he added.

However, Tehsil Municipal Officer (TMO), Irfan Saleem Butt said, “We are inspecting all the plazas where wiring is open or in poor state. Notices will be issued to the owners of all such plazas in next couple of days.”

Iesco Director operation Yousaf Awan said, “The electricity wiring of commercial and residential plazas is inspected by an electricity inspector just after the construction of the plaza.”

“However the Iesco responsibility is only from the wire, which is connected with electricity pole to the meters. Whereas the state of electricity from meters onwards is the responsibility of the plaza or house owner,” he added.

Lahore: ‘Directions for early completion of uplift projects’

Lahore: SITE offices, manned by the personnel of the agencies concerned, should be set up for the projects being executed under the Lahore Roads Rehabilitation Programme, at a cost of Rs14 billion, to ensure coordination among the relevant departments for early completion of the projects.

These directions were issued by Task Force on Rehabilitation of Roads Chairman Kh. Ahmad Hassan who was presiding over a meeting to review progress of the projects here on Tuesday. Lahore Development Authority Director General Shahid Mahmood, MPAs Hafiz Mian Muhamamd Nauman, Rana Ijaz and Chaudhry Shahbaz as well as representatives of the Frontier Works Organisation, Wasa, Tepa, Lesco, SNGPL and other departments were also present.

Kh. Ahmad Hassan underlined the need for publicising traffic management plans besides identifying alternative routes for facilitating the traffic on the under-construction roads. He asked the officials to take the MNAs and MPAs concerned on board for accomplishing these projects.

The meeting was informed that a flyover as well as an underpass would be constructed under the Shalimar Interchange Project in the Mughalpura area. Work for laying 72-inch sewerage from the GT Road to the Bund Road in the Bogiwal area, costing Rs110 million, was in progress. A 60-feet-wide road was also being designed for the 3.4km long stretch, which would be constructed at a cost of Rs84.8 million.

Work for fixing curb stone on Maulana Shoukat Ali Road was underway, which would be completed within a fortnight, besides a cycle track would be earmarked along the Madr-e-Millat Road in Township. Initial work for construction of road from the Multan Raod to Bund Road in Sabazazar area was in progress while the road construction work in Gulshan-e-Ravi would be started soon, the meeting was informed.

Prime residential property in central London sees steep fall

Prime residential rents in central London have fallen sharply in the last three months, the largest drop since 1995, according to a new report.

Knight Frank's latest index shows that rents have now fallen for three consecutive quarters taking them back to a level last seen in March 2007.

They fell by 9.6% over the last three months and by a total of 12% over nine months. Capital values are falling even more rapidly and consequently rental yields are continuing to rise, now standing at 4.2%, compared to 3.9% a year ago

'Prime residential rents in central London have fallen dramatically over the past three months, by 9.6% which is by far the biggest fall ever recorded by our index which was created in 1995. To put the figures in perspective, the drop of 2.1% recorded in September 2003 was the previous largest biggest decline on record in prime central London,' said Liam Bailey, head of residential research at Knight Frank.

He said there has been an increased demand for rental property, the result of many people choosing to delay house purchase, but this has been outweighed by the sheer amount of new stock coming onto the market, much of it from 'forced landlords' unable or unwilling to sell their property in the current market.

'This has combined with downward pressure on corporate and personal budgets, pessimism over the short-term future of the economy and mounting job losses in the key financial services sector to markedly drive down rents,' he explained.

The research shows that there are three times as many properties on the market than this time last year. 'It is not easy to tell clients that they need to drop the price of their property by at least 15%, if not 20% to 25% for larger properties,' said Tim Hyatt, head of UK lettings, Knight Frank.

But the analysts are upbeat about the letting business for 2009. 'We expect the lettings business to continue growing next year. Renting has become an acceptable medium-term option for many people and its flexibility will continue to appeal as the economic downturn continues,' he said.

'The changing climate will also make investment more appealing for rental returns alone. Landlords can be cautiously optimistic but need to be very flexible as they enter the New Year if they are to prosper in this difficult market,' added Hyatt.

UK property market will take longer to recover if repossessions rise in 2009

A flood of repossessions in the UK property market in 2009 will depress the real estate market even further and put off recovery for longer, a leading housing expert claims.

Steve Wilcox, of the Centre for Housing Policy at the University of York and author of the recently published UK Housing Review 2008/09, is urging the government to do more to help those in danger of having their property repossessed.

He said mortgage rescue plans were important but even more vital is preventing and holding back repossessions.

'Forbearance is far more critical than mortgage rescue. If there is a flood of repossessions, this will depress the property market further and put off recovery further,' said Professor Wilcox.

Major lenders have agreed not to start repossession action until three months after borrowers have fallen into arrears and some have even extended that to six months but more is needed to make home owners aware of what help is available.

The government's Homeowner Mortgage Support Scheme where borrowers losing their jobs can defer interest rate payments for two years, for example, will only work if people sign up, he said.

The problem is those that do not sign up for the scheme. 'Hopefully the scheme will be successful if levels of repossession can be held back. But subprime lenders need to sign up,' he explained.

He called for the measures outlined in the Crosby Report which calls for more government guarantees of mortgage lending to be brought forward. 'The government must do something now, it needs urgency,' he said.

He also called for new products to aid borrowers such as a return of mortgage indemnity guarantee (MIG) policies. The insurance covers the lender from loss in the event of a borrower defaulting, moving the exposure to loss to the insurance industry.

Real Estate Exhibition Opens In Sharjah

The second ACRES real estate exhibition kicked off on Monday in Sharjah, with over 100 real estate companies participating. Shaikh Saud Bin Khalid Bin Sultan Al Qasimi, a consultant in Sharjah Ruler's office, opened the event yesterday and conducted a tour of the exhibition space. Shaikh Saqr Bin Ahmed Bin Sultan Al Qasimi, chairman of Emirates Vision events management, organisers of the exhibition, said in a statement the event was originally meant to coincide with the region's economic development and growth of real estate activities. Shaikh Saqr added that Sharjah's economy is testament to the success of Shaikh Sultan Bin Mohammed Al Qasimi, ruler of Sharjah and supreme council member.

While the financial crisis has cast a shadow on all economic divisions in many regions of the world, the real estate sector continues to be highly efficient and effective, the statement said. Shaikh Saqr attributed this to the attractive investment climate established by the UAE government and a country that is secure, safe and strong in the areas of communications, business and infrastructure. Ahmed Mohammed Al Midfa, chairman of Sharjah chamber of commerce said projects such as Sharjah Marina, Emirates Industrial City and the Star Islands illustrate the progress being made in the real estate sector in the emirate, despite economic fears. There is a 20 per cent increase in the size of exhibition space on last year's figure with a total area of more than 12,000 square metres. The Gulf and other Arab countries make up around 30 per cent of the total number of exhibitors, with European countries such as Spain and the UK, participating for the first time.

Hydra Plans Project To House 50,000 Residents In Sharjah

Hydra Properties, a UAE-based property developer, said it will develop a new mixed-use project in Sharjah that is expected to have a resident population of 50,000. Hydra Village Sharjah is "poised to become a pioneering development in the emirate, the company said, but did not disclose how much it will spend on the project. The announcement comes at a time when most real estate developers are slowing down on their projects because of tight credit conditions in the market. Hydra said the project will have 66 per cent residential, 14 per cent office, 10.5 per cent retail, and 9.5 per cent hospitality space within it. We are all set to reveal Hydra Village Sharjah at the Acres Middle East Exhibition. Our steadfast vision and spirited commitment encourage us to keep going in building the best and the most innovative properties in the market, Hydra Properties chief executive officer Sulaiman Al Fahim said in a statement. The exhibition will take place from December 15 to 18 at the Expo Centre Sharjah.

Emaar Faces Uphill Task In 2009

Persistent talks of a bubble bursting wide open in the UAE real sector poses an uphill struggle next year for Emaar Properties, the biggest property developer in the Gulf region. Property developers like Emaar in Dubai are starting to feel the painful effects of a sharp drop in new buyer appetite, combined with a drop in property prices exceeding 20 per cent in certain areas, Shuaa Capital said in its latest research. The region is bracing for a deceleration of the vaunted property sector, especially Dubai with the global recession most likely taking a turn for the worse, dampening oil prices and further squeezing liquidity. Over the next six to 12 months, we expect this emerging reality together with the declining mortgage availability to suppress Emaar sales volumes on apartments, villas and land plots in the UAE, said Shuaa Capital.

Amid lingering concerns about a slowing growth in the region, Nakheel PJSC, the developer of the palm-shaped islands in Dubai and other major property developers, are already scaling back on their projects and drastically trimming their workforce. Jittery investors saw these dark clouds looming early on and unloaded their stakes in some of these companies. The recent turmoil in global financial markets saw lot of foreign investors exiting the UAE markets, As a result, foreign ownership in Emaar declined from 12.4 per cent in April 2008 to 5.9 per cent as of October,” said SICO Research in a market note. Emaar’s revenue may also be affected by the implementation of a new accounting method which requires real estate companies to use the completed contract method. This has the potential of affecting Emaar’s revenue and earnings adversely in the coming years but it would not have any impact on cash flows,” said Ambereen Jiwani of SICO Research. Emaar posted a revenue of Dh12.52 billion in the first nine months, 1.6 per cent lower from a year earlier, with apartment and villa sales revenue declining 24 per cent and 4.6 per cent, respectively. This was offset though by the rise in revenue from land and commercial property sales and a 73 per cent growth in recurring revenue from hospitality and rental properties, bringing the nine-month net profit to Dh4.82 billion, little changed from a year ago’s net profit of Dh4.84 billion.

The negative investor sentiment, impending oversupply in the Dubai real estate sector and restrictions imposed to weed out speculators, have kept investors away from Emaar stocks, resulting in a steep plunge of more than 80 per cent since the start of the year. While funding may be difficult to come by as banks tighten lending criteria, interest in Emaar shares will be helped by economic bailout plans pledged by governments, said Vyas Jayabhanu of Al Dhafra Financial Brokerage. UAE markets are likely to start trading higher once the economic relief packages in the US for instance, kicks in. It is difficult to paint all property stocks with the same brush. Some developers may see further downside from here, but developers with healthy balance sheets should be able to weather the storm.

Zameen.com Wins Best Pakistan, Best Asia and Best International Property Portal Awards

More than 4000 candidates, some of the best professionals competing from 97 countries, an astute committee consisting of 45 highly respected judges, and … the winner is Zameen.com. Yes, Zameen.com has emerged as the winner for the title of “best property portal in the world” at CNBC international property awards 2008. We are delighted, thrilled and motivated, all at the same time. Starting from the award of best property portal in Pakistan to reach this milestone in less than two years is marvelous. We have managed to stand out of our competition in a grand manner and while doing this we have made our country proud.

Getting the title from an independent organization has further cemented the confidence that our customers maintain in our services. Zameen.com would like to applaud all who have been a part of this achievement in one way or the other. We would like to carry on with our winning streak, by not only upholding this title, but also securing the leader’s spot at other platforms as well.

Zameen.com has once again proven its domination and authority in the online property world by winning the Best Pakistan Property Portal 2008, Best Asia Property Portal 2008 and the Best International Property Portal awards at the CNBC International Property Awards.

The awards are now established as the biggest in the world. Winners from each country are re-judged and up to five are nominated within each category for the chance of being chosen as the Best in the World.

Zameen.com is also proud to be the only real estate portal from Asia, which was nominated for the Best CNBC International Property Portal Award 2008.

Zameen.com now has tens of thousands of members including real estate developers, real estate agents, landlords and tenants from across the world and Pakistan through the continuous feature additions and enhancements of online real estate services by its staff after keen and vivid analysis of the real estate trends in the local and international market.

Continuous monitoring of real estate laws, trends and behaviours of buyers and sellers and then providing services in the simplest form for diversified needs after careful planning takes much hard-work and technological knowledge. Broad spectrum of online real estate services of Zameen.com covering radiated needs keeps it miles ahead than the others.

Zameen.com has proven its steel again and its team vows to continue providing state-of-art real estate services to its clients.

Zameen.com would like to congratulate and thank everyone for their continued support, hard-work and dedication in achieving this success and recognition.

Finding a property in Pakistan online has never been so easy since the launch of Zameen.com. The operational structure of Zameen.com has been designed meticulously by keeping in the view the diversified needs of property investors, tenants, sellers, buyers and agents alike. The dedicated staff of 40 people is continuously screening properties added by members and agents to make sure property listings are legitimate. The hard work of Zameen.com team has won it The Best Pakistan Property Portal 2008, The Best Asian Property Portal 2008 and the Best International Property Portal Award 2008.

Aesthetically pleasing and intuitive interfaces, easy navigation, quick contact and response mechanism and easy to search properties with standard and advanced search features are hallmarks of Zameen.com and testimonials to the award of Best International Property Portal.

Nakheel Mulls Dh55B Ipo

Nakheel, the UAE's biggest developer by project value with nearly Dh294 billion ($80 billion) master-planned developments in the pipeline, appears to consider a Dh55 billion ($15 billion) initial public offering (IPO) to raise capital to fund some projects. A Bloomberg report on Monday said quoting unnamed bankers that the developer is also is looking for IPO managers. When contacted, a Nakheel spokesperson neither confirmed nor denied the move, saying, "A company as large as Nakheel is constantly exploring a number of capital raising options, be it traditional debt issues, private equity, real estate investment trusts and direct project financing from banks. Nakheel, which is developing three iconic palm-shaped islands, on Sunday announced the layoff of 500 employees or 15 per cent of its 3,300 staff. Analysts said the move its too early for an IPO. We know Nakheel needs money. But it's too early for an IPO," investment advisor Raju Menon, managing partner at Morison Menon, told Gulf News.

This comes at at time when share prices are traded well below the real value of the companies in the UAE. Shares of Emaar, for instance, is traded well below the actual price. So the time is not right yet. They should wait for at least a year. Meanwhile, Nakheel on Sunday said it is delaying a number of projects, including the one it partnered with US realty tycoon Donald Trump. Nakheel is delaying long-dated infrastructure work on some of our projects in order to ensure that our business model is aligned to meet market demand," a Nakheel spokesperson said. "At Palm Jumeirah this means delays to Frond N villas, Gateway Towers and Trump International Hotel and Tower.