{"id":2717,"date":"2016-01-26T19:15:16","date_gmt":"2016-01-26T12:15:16","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=2717"},"modified":"2016-01-26T16:29:52","modified_gmt":"2016-01-26T09:29:52","slug":"uae-property-to-be-hit-by-lack-of-bank-funding-says-jll","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/uae-property-to-be-hit-by-lack-of-bank-funding-says-jll\/","title":{"rendered":"UAE property to be hit by lack of bank funding, says JLL"},"content":{"rendered":"


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\nDevelopers in the GCC will struggle to raise bank funding for new projects in 2016 as liquidity tightens across the region, according to JLL.The consultancy highlighted the lack of bank funding as the main trend to impact on real estate markets across the UAE in 2016. Citing worsening bank results for the 2015 financial year where local banks reported increasing provisions against bank loans, JLL Mena\u2019s head of research Craig Plumb said: \u201cBanks are understandably becoming more cautious, it\u2019s going to be more difficult to get lending [and] the terms are going to be tighter. We\u2019re looking at an increasing interest rate environment – that\u2019s not going to help.\u201d
\nAs well as tightening bank funding, Mr Plumb said that appetite among investors in bond markets and capital markets for property would be subdued. \u201cThe international markets for both bonds and IPOs are relatively cautious at the moment. There\u2019s been a lot of uncertainty. Bond investors are cautious, particularly towards the Middle East at the moment.He added that 12 months ago, it had been aware of 30-plus companies in the region that had been looking to raise money on capital markets through an initial public offering (IPO).
\n\u201cI think if we were to do the same thing now, that would be nearer to five than 30. We see some IPO activity, but perhaps not as much as was expected at the beginning of last year.\u201dAs a result, he believes that there is potential either for formal PPPs or more informal partnerships between the private sector and government to fund projects, particularly in the affordable housing market.Other trends the company is predicting is for developers to seek corporate clients who are willing to sign a long pre-lease for significant portions of buildings (build-to-suit), allowing clients more of a say in the construction of buildings and giving developers a secure revenue stream it can use for financing. It also sees more sale and leaseback buildings similar to those already completed by education firm Gems and hospital operator Medcare, allowing them to free up cash in estates.
\nIt also predicts that the nature and pace of capital flowing out of the Middle East into real estate markets (mainly London and the US) to change. About $11bn was spent by Middle East investors last year, and this was largely through sovereign wealth funds. This figure is expected to slow, but a greater proportion of this investment is expected to come from family offices and private investors.For Dubai, JLL is predicting a further decline in sale prices for residential units of about 5-10 per cent in 2016. Rents will also decline, but at a slower pace of 3-5 per cent.
\nIn Abu Dhabi. Residential sales growth was flat in 2015, and the firm expects a slight decline in prices of about 5 per cent in 2016, mainly in off-prime locations. Rents in Abu Dhabi are likely to remain stable due to the lack of new supply. David Dudley, head of JLL\u2019s Abu Dhabi office, said: \u201cHistorically, Abu Dhabi completed about 10,000 units per annum. Last year, it was 1,000. This year, it will probably be 5-6,000. That will be some Emirati housing, and then individual schemes in masterplanned areas. Aabar are quite active on Rawdah. On Reem Island and Rawdah there are buildings coming through, but it\u2019s limited.
\nIt\u2019s going to be a while until we\u2019re back to 10,000. Aabar, TDIC, Aabar and Bloom – groups like that will be doing more, but it\u2019s not going to be adding up to 10,000 per annum for quite some time.\u201dmfahy@thenational.aeFollow The National\u2019s Business section on Twitter
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\nSource : thenational.ae
\nRead more…UAE property to be hit by lack of bank funding, says JLL<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Developers in the GCC will struggle to raise bank funding for new projects in...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-2717","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-HP","jetpack-related-posts":[{"id":2778,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/uae-property-to-be-hampered-by-lack-of-bank-funding-says-jll\/","url_meta":{"origin":2717,"position":0},"title":"UAE property to be hampered by lack of bank funding, says JLL","date":"January 26, 2016","format":false,"excerpt":"\r \r Developers in the GCC will struggle to raise bank funding for new projects this year as liquidity tightens across the region, according to the JLL \u00adconsultancy.It highlighted the lack of bank funding as the main trend to affect property markets across the UAE in 2016. Citing worsening bank\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1266,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/many-new-dubai-homes-wont-be-delivered-on-time-in-2016-jll-says\/","url_meta":{"origin":2717,"position":1},"title":"Many new Dubai homes won’t be delivered on time in 2016, JLL says","date":"January 12, 2016","format":false,"excerpt":"\r \r The number of residential properties completed in Dubai last year was just 7,800 \u2014 considerably below the 25,000 units that had been forecasted by developers at the start of 2015, says JLL.The property consultancy said in its annual UAE real estate market review that materialisation rates \u2014 ie\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18028,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubais-property-market-needs-quarterly-rent-calculator-updates-says-jll\/","url_meta":{"origin":2717,"position":2},"title":"Dubai's property market needs quarterly rent calculator updates, says JLL","date":"June 29, 2016","format":false,"excerpt":"\r Dubai should revert to publishing quarterly updates in its rental calculator and introduce a citywide performance index to boost transparency in real estate markets, according to JLL's Mena head of research, Craig Plumb.The property consultancy has just produced its biennial Global Real Estate Transparency Index, which has seen Dubai\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":40101,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-retail-space-rise-may-bring-rents-down-to-keep-units-full-says-jll\/","url_meta":{"origin":2717,"position":3},"title":"Dubai retail space rise may bring rents down to keep units full, says JLL","date":"January 10, 2017","format":false,"excerpt":"\r The Dubai retail sector could be facing oversupply, a leading broker has warned.The continued construction of new shop space at a time when many retailers are reporting flat sales could lead to a potential oversupply in the Dubai market, JLL said.The company's UAE 2016 Year in Review publication stated\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":51604,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/jll-foresees-watershed-year-for-saudi-property-market\/","url_meta":{"origin":2717,"position":4},"title":"JLL foresees 'watershed year' for Saudi property market","date":"April 12, 2017","format":false,"excerpt":"\r Saudi Arabia's property market faces a \"watershed\" year, according to JLL.The introduction of the new white land tax and the drive to create more affordable housing will be key drivers for the market said Craig Plumb, the regional head of research.\"We predict there will be increased activity in the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":40059,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-housing-market-close-to-the-bottom-but-abu-dhabi-has-further-to-fall-says-expert\/","url_meta":{"origin":2717,"position":5},"title":"Dubai housing market close to the bottom, but Abu Dhabi has further to fall, says expert","date":"January 9, 2017","format":false,"excerpt":"\r The market for residential property in Dubai is now \"close to its cyclical trough\", but in Abu Dhabi prices and rents may have much further to fall, according to a new report by consultancy JLL.The firm's new \"2016 Year in Review\" report for the UAE property markets argues that\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/2717"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=2717"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/2717\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=2717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=2717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=2717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}